Commission changes coming.....

[MikeJaquish]

Originally Posted by jackmichigan

Trust accounts used to be the norm here. I haven't dealt with one in ages. I prefer for the title companies to hold any and all funds. Much simpler.

We are seeing fewer and fewer sales-oriented firms maintaining trust accounts.
Firms and Brokers get busted for trust account violations more than any other reason.

I want to broker transactions, not be an accountant with a real estate license.

[dontaskwhy]

Originally Posted by jackmichigan

I haven't dealt with one in ages. I prefer for the title companies to hold any and all funds. Much simpler.

In all seriousness, my broker/owner did the same thing and I agree with you, Jack.

[Brandon Hoffman]

Originally Posted by MikeJaquish

It IS pretty easy.
Not hard to lose, either, though.

I got two things out of BIC class:


1. Never open a trust account. Of course, property managers must have trust accounts, but that is a 9th circle of hell which I never want to enter.
https://mapofdantesinferno.weebly.com/ninth-circle.html


2. Never hire a provisional broker. That is a new broker who has 18 months to complete post-licensing credits to become a "full" broker or lose their license.

Most of our transactions, the EM is held by the closing attorney now. That shift happened about 4 years ago. The old indie dogs still do it the "traditional" way but those are becoming fewer and farther between.

I have 2 trust accounts, both for PM. One of the receiving/sending the rents and the 2nd is to hold the security deposits. Easier to keep the books like that. PM is the 9th circle of hell. About once a month I strongly considering selling the PM company.

[1insider]

Florida has a free dispute resolution process for escrow held in a real estate brokerage escrow account that makes having that account worth the hassle for the protection it affords the principals. Title company or attorney held escrow does not enjoy the same luxury.

[MikeJaquish]

Originally Posted by 1insider

Florida has a free dispute resolution process for escrow held in a real estate brokerage escrow account that makes having that account worth the hassle for the protection it affords the principals. Title company or attorney held escrow does not enjoy the same luxury.

We have trust account provisions, Account manager can send disputed funds to the Clerk of Court after 90 days if not resolved by then.
Attorney-held or real estate firm-held funds.

" Under N.C.G.S. 93A-12, a real estate broker or attorney holding disputed monies may deposit these funds with the clerk of court in the county where the property is located after properly notifying the persons claiming ownership of the funds. (Residential security deposits are specifically not allowed to be disposed of in this manner.) Notification is satisfied by providing written notice directly to the person claiming ownership or by mailing the notice by first-class mail to the person at his or her last known address. This allows the parties claiming ownership to renew their interest in the dispute and possibly resolve the claim.
The broker must wait 90 days following notification to the parties before attempting to deposit the funds with the clerk and must certify that the 90-day time period has passed. Once the broker deposits the monies with the clerk, his responsibility over the disputed funds is over.
Thereafter, either party may file a special proceeding with the clerk to recover the funds. The clerk of court is responsible for determining the rightful ownership of the monies and disbursing accordingly. If no such proceedings are filed within one year of the deposit, the funds shall be deemed unclaimed and will be turned over to the Escheat Fund of the State Treasurer."