Deposit Interest to the Buyer or Seller
Information regarding distributing interest collected on trust account deposit to the buyer or seller
The buyer and seller may enter into a written agreement as part of their trade in real estate, directing that interest earned on the deposit is to accrue to the buyer or seller. This may be significant in cases where there is a substantial deposit that will be held in trust for an extended period of time.
A brokerage may remove money from a trust account and invest it in accordance with an arrangement, in writing, between a buyer and a seller regarding the application of interest on that money. The brokerage may charge an adminstration fee of up to $50. The removed funds must be returned to the brokerage’s trust account before being paid out.
The Commission is mandated to protect consumers and to provide services that enhance and improve the industry and the business of industry members.