Who must ensure that trust funds are deposited into a licensed escrow/trust account promptly and kept separate from personal funds?

• A. The buyer.
• B. The lender.
• C. The broker or licensee.
• D. The HOA.

Answer: (C)

In real estate practice, the licensee handling the transaction is responsible for safeguarding client funds by depositing them promptly into a licensed escrow or trust account and keeping them separate from the licensee’s personal funds. This duty protects the client’s money, prevents commingling, and ensures proper accounting and compliance with state rules. The broker or licensee must open and maintain the escrow account, handle the funds according to the contract, and disburse them only as authorized. The buyer or lender simply provides funds, but they don’t manage the escrow account. The HOA isn’t responsible for handling or safeguarding trust funds in this context.