Don't have one, that's the most important thing.  No account equals no headaches and random auditors ruining your day.

To keep from co-mingling your clients money with yours, keep your license and probably not go to jail.

You mean besides the fact that having a trust account with problems is the quickest way to lose your license?

If not used properly you could go to jail.

A Trust Account is a requirement when you open an office. You don't have one, you jeopardize your license. 

TRUST!

No fishy business allowed!

The word "trust account" should give you a clue.

It's the law.

It is where the client's funds are kept and the fiduciary duty of the brokerage is to insure that the funds are safe. More real estate licensees are in trouble with their state agency over improper oversight of the trust account than any other issue. It is a big deal.

You must keep the funds of others separate from your own.

no commingling of money.... 

To hold money deposit from clients for the brokerage business. It is brokerage piggy bank.

In states that allow another entity, like an attorney ot title company, to hold the money don't open an account. You will need to audit it often and it is a pain.

I contains other peoples money.

Ryan Huggins - Thousand Oaks, CA nailed this one!

     Most Florida Brokers don't keep a trust account/escrow account... the exceptions being large companies, property management, and a few others.  We place all deposit money with a title attorney or title company; let them hold it.

Dylan Dewey Many good answers.

 Welcome to ActiveRain.  Hope to see you after you pass the test.

Prevents co-mingling of funds, which is ilegal.

In Texas if you going to receive clients money it is the law.

Good answers below.

Well, in MInnesota it is a Brokers license requirement.

Licensing requires this rule, regulation & standard to protect the consumer

Where did you get this question, Dylan? 

Great answers are here. 

Good luck

Must be safe.

The real estate commission is HOT on what happens with earnest money.   We are not seeing broker trust accounts as much now, we use title companies to hold EM.

It is a great place to pull $$ from when I am short on cash

You are so right about this question having been asked before. 

I do not have one.  No need to in today's world with how I manage my business.

Dylan Dewey In my State it's called an Escrow Account. It insures that a customer or client's funds are protected by law and can only be used for such purpose. Violating escrow laws will cause a broker to lose their license and potentially face some prison time.

Everything. It is sacred. As important to protect as needing air, water, love.

It ensures funds are kept separate from the Broker's funds and not mixed in or confused. It simplifies the accounting process and protects all parties.

I do not deposit anymore into a broker trust account, all is wired these days. 

Hella M. Rothwell, Broker/Realtor® has the answer for you!

The answer to this is in every Prelicense Book I have ever seen. I have been teaching Prelicense for 33 years and used multiple textbooks. How does asking this question help you? We here in ActiveRain know the answer (don't need a review) and bottom line shouldn't you be getting the official position /answer) from your course text?

Everything.  It is money held in TRUST.  It has to be in a separate account, and it regulated by the real estate board and laws thereof.  It can be audited at any time.  A