543B.46 Trust accounts. 1. Each real estate broker who is in the practice of depositing funds in a trust account shall maintain a common trust account in a federally insured depository institution for the depositof all down payments, earnest money deposits, or other trust funds received by the broker orthe broker’s salespersons on behalf of the broker’s principal, except that a broker acting as asalesperson shall deposit these funds in the common trust account of the broker for whom thebroker acts as salesperson. The account shall be an interest-bearing account. The interest onthe account shall be transferred quarterly to the treasurer of state and transferred to the Iowafinance authority for deposit in the housing trust fund established in section 16.181 unlessthere is a written agreement between the buyer and seller to the contrary. The broker shallnot benefit from interest received on funds of others in the broker’s possession. A broker whois not in the practice of depositing funds in a trust account shall not be required to maintaina common trust account pursuant to this section. 2. ds of others in the broker’s possession. A broker whois not in the practice of depositing funds in a trust account shall not be required to maintaina common trust account pursuant to this section. 2. Each broker required to maintain a trust account pursuant to this section shall notify the real estate commission of the name of the federally insured depository institution in whicha trust account is maintained and also the name of the account on forms provided therefor. 3. Each broker required to maintain a trust account pursuant to this section shall authorize the real estate commission to examine each trust account and shall obtain the certification ofthe federally insured depository institution attesting to each trust account and consentingto the examination and audit of each account by a duly authorized representative of thecommission. The certification and consent shall be furnished on forms prescribed by thecommission. This subsection does not apply to an individual farm account maintained in thename of the owner or owners for the purpose of conducting ongoing farm business whetherit is conducted by the farm owner or by an agent or farm manager when the account is partof a t maintained in thename of the owner or owners for the purpose of conducting ongoing farm business whetherit is conducted by the farm owner or by an agent or farm manager when the account is partof a farm management agreement between the owner and agent or manager. This subsectionalso does not apply to an individual property management account maintained in the name ofthe owner or owners for the purpose of conducting ongoing property management whetherit is conducted by the property owner or by an agent or manager when the account is part ofa property management agreement between the owner and agent or manager. 4. Each broker required to maintain a trust account pursuant to this section shall only deposit trust funds as directed by the principal of a transaction constituting dealing in realestate as described in section 543B.6 in the common trust account and shall not comminglethe broker’s personal funds or other funds in the trust account with the exception that abroker may deposit and keep a sum not to exceed one thousand dollars in the account fromthe broker’s personal funds, which sum shall be specifically identified and deposited to coverbank service charges relating to the and keep a sum not to exceed one thousand dollars in the account fromthe broker’s personal funds, which sum shall be specifically identified and deposited to coverbank service charges relating to the trust account. 5. A broker may maintain more than one trust account provided the commission is advised of said account as specified in subsections 2 and 3 above. 6. The commission shall verify on a test basis, a random sampling of the brokers, corporations, professional corporations, professional limited liability companies, andpartnerships for their trust account compliance. The commission may upon reasonablecause, or as a part of or after an investigation, request or order a special report. 7. The examination of a trust account shall be conducted by the commission or the commission’s authorized representative. 8. The commission shall adopt rules to ensure implementation of this section.[C71, 73, 75, 77, 79, 81, §117.46; 81 Acts, ch 54, §23; 82 Acts, ch 1067, §1]85 Acts, ch 252, §1; 92 Acts, ch 1242, §22, 23C93, §543B.4693 Acts, ch 30, §2; 93 Acts, ch 175, §19; 95 Acts, ch 170, §7; 96 Acts, ch 1027, §1; 97 Acts, ch 23, §67; 97 Acts, ch 214, §12; 2007 Acts, ch 13, §6; 2008 Acts, ch Acts, ch 1242, §22, 23C93, §543B.4693 Acts, ch 30, §2; 93 Acts, ch 175, §19; 95 Acts, ch 170, §7; 96 Acts, ch 1027, §1; 97 Acts, ch 23, §67; 97 Acts, ch 214, §12; 2007 Acts, ch 13, §6; 2008 Acts, ch 1097, §3; 2012 Acts, ch 1017,§150; 2013 Acts, ch 30, §138; 2014 Acts, ch 1092, §121; 2017 Acts, ch 71, §10; 2018 Acts, ch1026, §160 Referred to in §543B.29 Sat Dec 23 01:45:39 2023 Iowa Code 2024, Section 543B.46 (25, 1)
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