Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on Twitter

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Advertisements


Sponsored Links
Advertisements
How To Advertise Here
How To Advertise Here

Good Idea!
Realtor Promotion Service

Sponsored Links
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 28352241
No new orders today 13123526
Stupid MLS comments. 3309940
What do you know about Froy Candelario, top agent in USA 1208008
Stupid QC comments and BPO requirements. 1082632
New HUD Listing Brokers---Any Update? 1043269
Is there religious content in Buffini class? 835781
Let's talk about our cars 681505
Name that Flick. Great movie Lines. 614408
Pay it Forward - BPO/REO Tips & Tricks I & II 603576
Most common items found at an REO 593733
EML 459233
REOTRANS 448882
Main Street 434830
asset val seminar in colorado 415245
assist 2 sell or 1 percent realty? 346843
HOMONYMS - There, Their, and They're 317098
Evalonline 300206
Land America 285053
Mainstreet 261860
Matched Content
Topic Options
Rate This Topic
#459701 - 11/08/17 11:02 AM Broker Trust Account in New Jersey? Any banks or bankers to recommend?
markmallek Offline
Junior Member

Registered: 11/08/17
Posts: 1
Loc: NY
Hello,

I'm starting a brokerage in New Jersey but have run into a road block while trying to set up the escrow or broker's trust account at a bank. I'd prefer not to hold these funds, but understand it's a requirement for my NJ broker's license and I must show proof that I've opened either an escrow or brokers trust account.

I've been trying to work with commission approved banks, but no one seems to know how to set one of these things up. The issue with the account is that they keep asking for a beneficiary or an escrow agreement. My understanding is that this trust account would be set up, then I'd have the person I'm holding the money for fill out a w-9 and I'd have to create a sub account to put their money into similar to an attorney or landlord.

Does anyone have a recommendation of a bank in new jersey or better yet, a banker they've worked with who was able to set this type of account up?

Thank you in advance.

Top
Advertisements
#459702 - 11/08/17 11:17 AM Re: Broker Trust Account in New Jersey? Any banks or bankers to recommend? [Re: markmallek]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7766
Loc: Vermont's North-East Kingdom
Here in Vermont, all Brokers maintain what's called an "IORTA" Account (Interest on Real Estate Trust Account) and any interest earned in that account is swept out monthly and sent to the State Treasurer to be used to support Affordable Housing Programs. Every Bank knows how to set these up.

I would assume New Jersey has something similar; just like Attorney Trust Accounts were set up to support Legal Defense Funds.

Your Real Estate Commission "should" be able to clear this up for you.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

Top
#459752 - 11/12/17 01:58 AM Re: Broker Trust Account in New Jersey? Any banks or bankers to recommend? [Re: markmallek]
Long Walk Online   content
Member

Registered: 06/27/08
Posts: 192
Loc: New Hampshire
Originally Posted By: markmallek
I've been trying to work with commission approved banks, but no one seems to know how to set one of these things up. The issue with the account is that they keep asking for a beneficiary or an escrow agreement. My understanding is that this trust account would be set up, then I'd have the person I'm holding the money for fill out a w-9 and I'd have to create a sub account to put their money into similar to an attorney or landlord.

What is a commission approved bank?

You may want to talk with a local broker if you have relationships that would allow you to pick their brains. What you are experiencing sounds much harder than it should be because lawyers keep escrow accounts as well, so the banks should be well aware of the process.

We did this in SC when we owned a brokerage. Setting up the trust/escrow account was no more difficult than creating an operating account. We had the option to use a non-interest bearing account, which made my life much simpler. I have no experience with filling out W-9's as an agent, broker, or buyer. I have never heard of the practice, but it may be how things are done in NJ.

But, it is possible that I did the whole thing wrong, though. My escrow account was never inspected by the Commission in the 7 years that we did it. Everything balanced monthly and everybody got their money as was appropriate.

Top






Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Newest Members
NYREALTYADVISOR, PamelapJames, hafiz sajid, Ashton MacDonald, Larry Charles
29900 Registered Users
Who's Online
2 registered (AnonymousWriter, estatereal), 52 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
Long Walk 40
Vermont 23
VABroker 21
estatereal 19
Trouble 14
Lucky Leonardo 11
MissionJoe 8
YM 4 RC&MF LLCs 8
David Hunter 6
TheTexasGal 6
Mr. Clean 6
sualk54 6
Gamin' Agent 5
Nasser 5
Mayra Kelley 4
Featured Member
Registered: 03/20/13
Posts: 378
Facebook

How To Advertise Here


This site presented by RNC Internet Services