Wyoming Administrative Code
Agency 018 - Real Estate Commission
Sub-Agency 0002 - Real Estate Commission
Chapter 5 - BROKERS' TRUST OR ESCROW ACCOUNTS
Section 5-1 - Brokers' trust or escrow accounts

Universal Citation: WY Code of Rules 5-1

Current through September 21, 2024

The following rules apply to trust or escrow accounts held by licensed Responsible Brokers.

(a) All money belonging to others accepted by the Responsible Broker shall be deposited with a funds holder or in a bank, financial institution or other recognized depository in this state in a trust or escrow account separate from personal or business money belonging to the Responsible Broker. A banking trust account may be any type of checking, demand, passbook, or statement account insured by an agency of the United States government. The name of each trust account shall be identified by the word "trust" or "escrow". The account shall be maintained in the name of the Responsible Broker.

(b) Money belonging to others which is received by the Responsible Broker or licensees or employees acting on his behalf includes but is not limited to money received in connection with property management contracts; rent or lease contracts; advance fee contracts; or money belonging to others received for future investment or other purposes.

(c) If the Responsible Broker does business as a real estate company, trust or escrow accounts shall be maintained in the name of the Responsible Broker acting for the real estate company and in the name of the real estate company. The name of the Responsible Broker is to be followed by the words "Responsible Broker".

(d) Each account heading shall include a label identifying the purpose/type of the account, i.e. "sales trust," "security deposit escrow," "property management trust."

(e) Unless otherwise permitted by other subsections of this rule, all money belonging to others shall be deposited according to the purpose of the transaction in separate types of escrow accounts. For example, sales escrow deposits separated from property management deposits separated form security deposits as follows:

(i) Example:

Line 1 - XYZ Realty

Line 2 - John Doe, Responsible Broker

Line 3 - Meadows Homeowners' Association Escrow Account

(ii) The Responsible Broker shall be able to withdraw money from a trust or escrow account without the benefit of a cosigner. Other authorized signatures of licensed or unlicensed people may also appear on the account.

(iii) Money belonging to others, when accepted by a Responsible Broker or funds holder, shall not be invested in any type of account, security, or certificate of deposit which has a fixed term for maturity unless there is written consent obtained by the Responsible Broker of all parties to the transaction.

(iv) Money held in a trust or escrow account which is due and payable to the Responsible Broker shall be withdrawn promptly. Monies earned by licensees affiliated with a Responsible Broker may not be paid directly from the Responsible Broker's trust or escrow account.

(v) All money belonging to others in the form of cash, check received shall be deposited directly into the listing Responsible Broker's real estate company trust account or with the Responsible Broker's real estate company funds holder by the listing Responsible Broker per W.S. 33-28-122(a)(i), not later than the first banking day after receipt unless all persons having an interest in the funds have agreed otherwise in writing.

(vi) When trust funds are held by a funds holder, the Responsible Broker shall obtain a receipt showing the date and the amount of the funds transferred to the funds holder. The Responsible Broker, for each funds holder account maintained, shall also maintain a recordkeeping system in his place of business, consisting of at least the following:
(A) Date Received/Paid,

(B) Check number,

(C) Amount,

(D) Buyer,

(E) Seller,

(F) Escrow Agent,

(G) Date Delivered,

(H) Description of the real estate, and

(I) Disposition of Transaction.

(vii) The Responsible Broker, for all money belonging to others, shall also maintain a recordkeeping system for every real estate company and/or branch location consisting of at least the following:
(A) A journal shall show the chronological sequence in which funds are received and disbursed. For funds received, the journal shall include the date, the name of the party who is giving the money, the name of the principal, address or description of the real estate, the amount. For disbursements, the journal shall also include the date, check number, amount, payee, principal, and the address or description of the real estate. The journal shall include a current running balance.

(B) A transaction ledger shall show the receipts and disbursements as they affect a particular transaction between buyer and seller or landlord and tenant, etc. The transaction ledger shall include the names of both parties to the transaction, the dates and amounts received, and the address and description of the real estate. When funds are disbursed, the date, payee, check number, and amount shall be shown.

(C) The Responsible Broker shall reconcile trust or escrow account journals and ledger liabilities monthly. The bank reconciliation shall prove agreement on the date of reconciliation by (1) the cash balance showing in the account journal; (2) the sum of the cash balances for all ledgers; and (3) the corresponding bank account balance. This worksheet shall be maintained in hard copy or electronic form for later inspection and list each beneficiary's ledger balance on the date of reconciliation. The Responsible Broker is not required to reconcile any trust or escrow account when no banking activity has occurred.

(D) Separate trust account journals shall be reconciled with the related bank statement monthly.

(f) Money belonging to one party shall not be used for the benefit of another party.

(g) Any instrument or equity or thing of value taken in lieu of cash shall be held by the listing Responsible Broker except as otherwise agreed to in writing by all parties to the transaction.

(h) A nonresident Responsible Broker licensed in Wyoming engaged in real estate activity in this state shall maintain separate trust accounts with a Wyoming funds holder or in a bank or recognized depository in Wyoming.

(j) A Responsible Broker is not limited to the number of separate trust accounts or funds holder accounts he may maintain for money belonging to others.

(k) When money is collected by a Responsible Broker for performance or services or for the expenses of performing such services, or for advertising expenses in regard to the sale of real estate, and such money is collected before the advertising or services have been performed, such Responsible Broker shall deposit such money with a funds holder or in a trust account. No money may be withdrawn from such principal's funds, except for actual expenses paid on behalf of the principal, until the Responsible Broker has fully performed the services for which the principal contracted. A full and itemized accounting shall be furnished the principal within twenty (20) days of any withdrawal of such principal's funds from such principal's account.

Disclaimer: These regulations may not be the most recent version. Wyoming may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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