Broker’s client is a developer. The developer wants broker to coordinate advertisement of the development. The developer wants to send broker $1,000 a month to advertise the property. The developer wants receipts to show how the funds are spent in advertising.
Does broker have to place the funds in a trust account?
A.R.S. § 32-2151(B)(2) provides: “A broker shall not permit advance payment of monies belonging to others to be deposited in the broker’s personal account or to be commingled with personal monies.”
Therefore, upon receipt of the funds, the broker should immediately place the money into a broker trust account.