# TREC trust account rules for Texas brokers

By Rotomal team · Updated 2026-10-29 · Part of [Trust Reconciler](https://rotomal.com/trust-reconcile/)

**Short answer:** TREC's trust money rule for Texas brokers is 22 TAC §535.146, Maintaining Trust Money. A broker who agrees to hold others' money must use an account clearly identified as a trust account, deposit trust money by the close of business of the second working day after receiving it, provide an accounting to each beneficiary at least monthly if the account had activity, and keep the records for four years. Sales agents may not have escrow accounts, and the broker stays accountable even when another license holder is allowed to sign.

## TREC's trust money rule at a glance

| Requirement | What the rule says | Rule |
| --- | --- | --- |
| When a trust account is needed | Only if the broker agrees to hold money belonging to others or to act as an escrow agent | 535.146(b)(1) |
| Who may hold one | Brokers; a sales agent may not have an escrow account | 535.146(b)(2) |
| Deposit deadline | Not later than the close of business of the second working day after the broker receives the trust money | 535.146(b)(3) |
| Commingling | Paying operating expenses from the trust account is prima facie evidence of commingling | 535.146(b)(5) |
| Account name | Clearly identified as a trust account | 535.146(c)(1) |
| Interest | The broker may keep it only if the depositor signed an agreement allowing that | 535.146(c)(3) |
| Monthly accounting | An accounting to each beneficiary at least monthly if there has been any activity in the account | 535.146(c)(6) |
| Who signs | Another license holder may be authorised to withdraw or transfer money; the broker remains responsible | 535.146(c)(7); 535.2(c) |
| Records | Kept for four years from the date a document is received or created | 535.146(e) |

## Does a Texas broker need a trust account?

Not unless the broker agrees to hold money belonging to others or to act as an escrow agent. TREC's contract forms require the buyer to deliver earnest money to the escrow agent named in the contract, so a broker who only lists and sells may never hold trust money.

Property management is the common exception. TREC says security deposits held for an owner should go in a trust or escrow account, which may be separate from the broker's other trust account.

## Monthly accounting is not the same as a reconciliation

The rule's word is accounting: each beneficiary gets an account of their money, at least monthly, whenever the account moved. It doesn't name a three-way reconciliation. In practice the figure you give each owner is only reliable if the owner ledgers add up to the trust journal and the journal matches the bank, and a three-way reconciliation is how you show that.

- Adjusted bank balance: statement balance plus deposits in transit, minus outstanding checks.
- Trust journal balance on the same date.
- Sum of the owner, tenant or transaction ledgers, each of which feeds that beneficiary's monthly accounting.

## What to keep for four years

- Documentary records of each deposit to and withdrawal from the trust account (required by 535.146).
- Any signed agreement letting the broker keep interest (required to keep it).
- Each monthly accounting sent to a beneficiary.
- Bank statements and the reconciliation worksheets behind the accountings, so you can show how each figure was reached.

The first two come from the rule; the last two are good practice that make the first two easy to prove.

## Mistakes the rule is aimed at

- Paying office or operating expenses from the trust account.
- Keeping interest without a signed agreement from the person who deposited the money.
- Depositing late, after the second working day.
- An agent holding client money in an account of their own.
- Releasing disputed earnest money without the agreement and release that TREC's promulgated forms allow the broker to require (535.146(d)).

## Doing the monthly work from your books

If the brokerage keeps its trust books in QuickBooks Online or Xero, the three figures and each beneficiary's balance are already there. Trust Reconciler reads them read-only, lists every difference, flags negative owner balances and keeps a signed monthly record. It was built for law firms; tell us you are a Texas brokerage when you request service and we will confirm the pack fits TREC's rule.

## FAQ

### How often must a Texas broker account for trust money?

At least monthly, to each beneficiary, if there has been any activity in the account (22 TAC 535.146(c)(6)).

### Can a Texas broker keep the interest earned on an escrow account?

Only if the person who deposited the money signed an agreement authorising the broker to keep it.

### Can a sales agent hold earnest money in their own account?

No. Rule 535.146(b)(2) prohibits a sales agent from having an escrow account.

### Does TREC decide who gets disputed earnest money?

No. TREC says it has no jurisdiction to decide which party is entitled to the earnest money.

### Is this legal advice?

No. It summarises TREC's rule and FAQs as of 29 October 2026, not legal or accounting advice. Confirm with TREC or your own counsel.

## Sources

- Texas Real Estate Commission: FAQs on trust and escrow accounts, citing Rule 535.146. https://www.trec.texas.gov/node/383
- 22 Tex. Admin. Code §535.146, Maintaining Trust Money (Cornell LII copy). https://law.cornell.edu/regulations/texas/22-Tex-Admin-Code-SS-535-146

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