# Trust Accounts, Fee Splitting, Rebates and Advertising Rules

> How a Texas broker holds and disburses trust money (second working day, 30-day removal and demand rules, monthly accounting, 4-year records), who may share a fee, rebate consent, and the advertising and team-name rules.

**Source:** https://www.statereprep.com/learn/texas-real-estate-broker/txb-trust-accounts-conduct  
**Published:** 2026-11-09

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Standards of Conduct is the largest non-case section after Agency & Brokerage. For a broker, it is about money: holding other people's funds, sharing fees only with licensed people, and advertising in a way that shows who runs the brokerage.

## Accepting and depositing trust money

- **Trust money** means a client's money, earnest money, rent, unearned fees, security deposits, or any money held for another person.
- Trust money a broker accepts is held in a **fiduciary capacity**, in a designated trust account maintained by the broker or delivered to an authorized Texas escrow agent as the principals agreed. A broker does not need a trust account unless the broker agrees to hold money of others.
- A **sales agent may not maintain a trust account** and must immediately deliver any trust money to the sponsoring broker.
- Unless the principals expressly agree in writing to a different time, the broker deposits trust money, or delivers it to the escrow agent, not later than the **close of business of the second working day** after receiving it.

## Keeping the account clean

- No commingling: trust money may not be mixed with the broker's personal or other non-trust money, or kept in a personal or business account. Putting trust money in a personal or operating account, or paying operating expenses from the trust account, is **prima facie evidence of commingling**.
- The account must be clearly identified as a trust account. Separate accounts for each client or type of money are allowed but not required.
- A broker may keep a reasonable amount of the broker's own money in the account to cover bank service fees, with detailed records.
- Money the broker comes to own, including earned compensation, must be removed not later than the **30th day** after the broker acquires ownership.
- In an interest-bearing account, the money must be available when due, and interest goes to the parties who receive the money unless the depositor signed an agreement saying otherwise.
- The broker keeps a documentary record of each deposit and withdrawal and accounts to each beneficiary **at least monthly** if there was activity.
- The broker may authorize only another **license holder** to withdraw or transfer trust money, and remains responsible for every deposit and disbursement.
- If a deposited check is dishonored, the broker immediately notifies all parties in writing.

## Paying trust money out

- Disburse only in accordance with the agreement under which the money was received.
- On a **written demand** by any or all parties, pay the party entitled to the money not later than the **30th day** after the demand. Under a later written agreement of all parties, pay as it directs not later than the 30th day after receiving it. Notify all parties in writing immediately of either disbursement.
- If the broker cannot reasonably determine who is entitled, the broker may pay the money into the registry of a court and interplead the parties.
- Keep all trust account documentation for **four years** from the date it is received or created.
- Failing to account for or remit money within a reasonable time, commingling, and disbursing escrow before the transaction is completed or terminated are each grounds for discipline.

Worked example: the second working day

Earnest money reaches broker Ana on Monday, and Monday through Friday are working days. With no written agreement setting another time, Ana deposits it not later than the close of business on Wednesday. If her agent took the check at an open house, the agent had to hand it to Ana immediately.

## Fee splitting, rebates and referral fees

- A broker may pay a commission for an act of a broker only to a **license holder** or to a broker licensed in another state who conducts no negotiations in Texas.
- An unlicensed person may share in the income of a licensed business entity broker if the person performs no act requiring a license and does not lead the public to believe the person is in the brokerage business.
- A license holder may rebate part of a fee to a party with the written consent of the party represented (and, for a sales agent, of the sponsoring broker). Paying a party the license holder does not represent requires the client's written consent first. No payment may mislead a lender, title company or government agency.
- A license holder may not take a fee, commission or rebate from anyone other than the client without first disclosing it and getting the client's consent, and may not pay or receive a fee for referring inspectors, lenders, mortgage brokers or title companies.
- A referral made for valuable consideration requires a license; gifts of merchandise worth more than $50 count as valuable consideration.

## Advertising, teams and names

- Every advertisement shows, in a readily noticeable place, the name of the license holder or team placing it and the **broker's name in at least half the size** of the largest contact information for any sales agent, associated broker or team name in it.
- A **team name** must end in "team" or "group" and may not suggest an independent brokerage (for example "brokerage", "company" or "associates"). The broker registers it before use and tells TREC within 10 days after the team stops using it.
- The broker registers an **assumed business name** with TREC, with written evidence of legal authority to use it, before it appears in an ad. Each individual registers an **alternate name**.
- Misleading ads include ones that identify a sales agent as a broker, give a sales agent a title such as owner or president, keep advertising a listing more than 10 days after the listing ends, or advertise a property 10 days or more after closing without its current status.
- The sponsoring broker is responsible for sponsored agents' advertising.

ComminglingMixing trust money with the broker's own money; trust money in an operating account is prima facie evidence of it.Trust moneyClient money, earnest money, rent, unearned fees, security deposits or any money held for another.Team nameA collective name for a broker's agents that must end in "team" or "group" and be registered by the broker.

## Where this shows up on the exam

Standards of Conduct is **9** of the 50 scored State items. Trust accounts, splitting fees, rebates and advertising are four of its seven topics. Expect deposit-deadline date math, the 30-day removal and payout rules, and advertising scenarios.

Quick Check

Broker Tomas Reyes holds a buyer's $8,000 earnest money in an interest-bearing trust account, and the buyer signed nothing about interest. The buyer defaults, and under the contract the $8,000 is released to the seller. Who gets the interest it earned?

The parties to whom the money is disbursed

Tomas, to offset his trust account bank fees

The buyer, because the buyer deposited the money

The seller's listing broker, who holds the listing

Unless an agreement signed by the party who deposited the money says otherwise, interest earned on trust money must be distributed to the parties to whom the money is disbursed. Here the earnest money goes to the seller, so the interest follows it. The broker may not keep it for bank fees without a signed agreement, the depositor gets it only if the money goes back to the depositor, and the listing broker has no claim.

## Sources

North Carolina law as published by the General Assembly and the Office of Administrative Hearings, checked 2026-11-05:

- 22 TAC §§535.2, 535.20, 535.146, 535.147, 535.148, 535.154, 535.155
- Tex. Occ. Code §§1101.651, 1101.652(b)
- TREC License Holder FAQ (staff guidance)
- Pearson VUE Texas Broker State Law outline #094401