BIC TIP #1318: That Is Not Your Money
Stephen Long, your Notorious BIC, has a simple reminder for every agent: do not touch money that does not belong to you. It sounds obvious, but it is one of the fastest ways for a well-meaning broker to end up in front of the North Carolina Real Estate Commission.
Courier of Funds, Not a Bank
In residential sales, a broker may act as a courier of funds. That means you can carry a check or other payment from one party to where it belongs. Anything beyond that requires a trust account, because a trust account is where money that belongs to other people has to go.
Never Run Due Diligence Money Through Your Account
If you do not have a trust account, you should never receive or deposit anyone else’s money into your own account. Stephen is specifically addressing due diligence money. Do not let a buyer send due diligence money to your account so you can pass it along to the seller, however the arrangement is set up. Due diligence money goes from the buyer directly to the seller.
Property Management Is Different
If you work in property management, everything goes into the trust account and is handled from there. The same principle applies: funds that belong to others are held and accounted for in trust, never mixed with your own.
The Practical Takeaway
Your role in a sales transaction is to deliver funds, not hold them. If money belongs to someone else and you do not have a trust account, it should never touch your account. Keep due diligence money moving from buyer to seller and protect your license.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.