Trust Accounts, Earnest Money, and Commingling in Texas

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Trust-account questions scare Texas candidates because they sound like bank-account questions.

They are really responsibility questions.

The exam is asking:

Whose money is it, who received it, where should it go, and who is responsible for it?

Once you ask that, the topic gets easier.

A buyer delivers earnest money. A sales agent puts the check in a desk drawer. A broker deposits client rent into the brokerage operating account. A property manager mixes security deposits with business funds. A broker takes a fee from the trust account before the broker has earned it. A buyer and seller fight over who gets the earnest money after termination. An escrow agent receives the deposit instead of the broker. A check bounces after being deposited.

Those are all trust-money fact patterns.

The exam is not trying to make you a banker. It is testing whether you know that money held for someone else is not the license holder's money.

Use this rule:

If the money belongs to another person, treat it as trust money until the facts show otherwise.

Then ask five questions:

1. Is the money trust money?
2. Did a broker, sales agent, or escrow agent receive it?
3. Was it deposited, delivered, or held correctly?
4. Was it mixed with non-trust money or used for the wrong purpose?
5. What does the agreement say about disbursement?

That is the whole study framework.

Table Of Contents

• What Pearson is testing
• The core rule
• Trust money vs trust account
• Earnest money
• Sales agent vs broker responsibility
• Deposit timing
• Commingling
• Conversion
• Disbursement
• Disputed earnest money
• Property management money
• Broker records
• Decision tree
• Mini scenarios
• Practice questions
• FAQ

What Pearson Is Testing

Pearson's 2026 Texas Sales Agent state-law outline gives Standards of Conduct 9 scored items.

The outline lists:

• Professional ethics and conduct.
• Grounds for discipline.
• Unauthorized practice of law.
• Trust accounts.
• Splitting fees.
• Rebates.
• Advertising.

Trust accounts is one line on the outline, but it can show up inside many kinds of questions:

• Ethics.
• Broker responsibility.
• Earnest money.
• Property management.
• Security deposits.
• Unlicensed assistants.
• Complaints.
• Discipline.
• Contract termination.
• Buyer default.
• Seller default.
• Broker records.

The exam can ask a clean rule question:

Can a Texas sales agent maintain a trust account?

It can also ask a layered fact pattern:

A buyer gives earnest money to a sales agent on Friday afternoon. The sales agent waits several days and then deposits the money into the agent's personal account so it will not get lost. What is the best answer?

That second question is testing at least four things:

• The money is trust money.
• The sales agent should not maintain a trust account.
• Trust money received by a sales agent goes to the sponsoring broker immediately.
• Personal-account deposit creates a commingling problem.

If you see a money-handling question, slow down.

Do not jump to who is "fair" or who "deserves" the money. The exam wants the proper handling rule first.

The Core Rule

Texas trust-money law starts with a simple idea:

Money held for another person is not the license holder's money.

TREC Rule 535.146 defines trust money broadly. For exam purposes, memorize these examples:

The exam may not use the phrase "trust money."

It may say:

• Deposit.
• Rent.
• Security deposit.
• Option fee.
• Unearned retainer.
• Tenant payment.
• Buyer funds.
• Money held pending closing.
• Money held pending a dispute.

Your job is to recognize the trust-money issue even when the question uses ordinary language.

Trust Money Vs Trust Account

Do not confuse these two ideas.

The exam trap is assuming every broker must always have a trust account.

That is not the rule.

TREC's public FAQ says a broker is not required to have a trust or escrow account unless the broker agrees to hold another person's money or to act as an escrow agent. On the exam, that means:

No trust money accepted -> no trust account required by that fact alone.
Trust money accepted -> handle it under the trust-money rules.

If the broker accepts trust money, the broker must either maintain it in a proper broker trust account or deliver it to an authorized escrow agent according to the agreement of the principals.

That last phrase matters.

Texas residential contracts often name an escrow agent. In many transactions, the buyer delivers earnest money to the escrow agent, not to the broker. If the broker never receives the money, the broker-trust-account timing question may not be the same question.

Read the facts.

Earnest Money

Earnest money is one of the most common trust-money examples.

It is not a bonus for the seller on day one. It is not the buyer's permanent money no matter what happens. It is not the sales agent's money. It is not the broker's office cash.

Earnest money is transaction money held under the contract.

In the TREC One to Four Family Residential Contract, the earnest money section identifies the escrow agent and states the buyer's delivery deadline. For the current Form 20-18, the buyer must deliver earnest money and any option fee within three days after the effective date, and the form extends the deadline if the last day lands on a Saturday, Sunday, or legal holiday.

For exam purposes, remember the practical point:

Earnest money follows the contract and the named holder.

If the contract says the buyer delivers earnest money to the title company as escrow agent, the broker should not casually collect it and hold it outside the contract process.

If the broker does receive earnest money, it becomes a trust-money handling issue.

If the sales agent receives earnest money, the sales agent must immediately deliver it to the sponsoring broker.

If the earnest money is disputed, the license holder should not decide the dispute based on personal sympathy.

Sales Agent Vs Broker Responsibility

This is the highest-value distinction in the article.

Texas sales agents act through their sponsoring broker. That theme appears all over the Texas exam, but it is especially important with money.

A sales agent should not:

• Keep earnest money in a desk.
• Deposit trust money into a personal account.
• Maintain a separate escrow account.
• Hold a buyer's check until the agent feels ready.
• Decide who gets disputed funds.
• Pay a client from the agent's personal funds to "fix" a trust-account problem.

The safe sales-agent answer is usually:

Deliver trust money to the sponsoring broker immediately and follow broker/contract procedures.

The safe broker answer is usually:

Hold trust money in a proper trust account or deliver it to the authorized escrow agent, then disburse only as allowed by the agreement or law.

Broker Responsibility

TREC Rule 535.2 makes broker responsibility explicit.

The broker is responsible for proper handling of trust funds placed with the broker. That responsibility is not erased because a sales agent touched the money first.

This is why exam questions often pair trust money with supervision.

Example:

A sponsored sales agent accepts an earnest-money check and keeps it until the buyer's option period expires. The sponsoring broker says the agent handled it, so the broker has no responsibility.

That answer should feel wrong.

The broker supervises the sales agent and is responsible for trust funds placed with the broker. If the facts show the sales agent received trust money, the question is testing whether the money was routed properly to the broker and handled properly after that.

Broker responsibility does not mean the broker must personally drive every check to the bank. A broker may authorize another license holder to withdraw or transfer money from a trust account. But TREC's rule still keeps responsibility with the broker.

Exam shortcut:

Delegation does not erase broker accountability.

Deposit Timing

The timing rule is another exam favorite.

Unless the principals agree in writing to a different timing rule, TREC treats a reasonable time for a broker to deposit trust money or deliver it to an authorized escrow agent as no later than close of business on the second working day after the broker receives it.

Study that carefully.

The clock in that rule starts when the broker receives the trust money.

If a sales agent receives trust money, the first issue is immediate delivery to the sponsoring broker. Then the broker's handling rule matters.

Also watch the difference between:

• Calendar day.
• Working day.
• Business day.
• Contract deadline.
• Close of business.
• Effective date.
• Date of receipt.

Texas exam questions love changing one word.

Do not merge the TREC trust-money deposit rule with the TREC contract earnest-money delivery rule.

They are related, but they are not the same sentence.

Commingling

Commingling means mixing trust money with money that is not trust money.

In plain English:

Do not put someone else's money into your money bucket.

Common exam examples:

• Broker deposits earnest money into the broker's operating account.
• Sales agent deposits a buyer's check into the agent's personal account.
• Property manager deposits tenant security deposits into the management company's regular business account.
• Broker pays office rent out of a trust account.
• Broker withdraws trust money for a purpose other than proper disbursement.

TREC Rule 535.146 says a broker must not commingle trust money with personal money or other non-trust money. It also treats placement of trust money in a personal or operating account as evidence of commingling. Paying operating expenses or making improper withdrawals from a trust account can also create a commingling issue.

The exam may use the words:

• Commingling.
• Mixing.
• Operating account.
• Business account.
• Personal account.
• Office expenses.
• Borrowing from the account.
• Temporarily using the funds.

"I put it back later" is not a safe exam defense.

Neither is:

• "The buyer gave permission orally."
• "The agent meant well."
• "The broker needed the money for a few days."
• "No one was harmed."
• "The transaction closed anyway."

The safest answer protects trust money before damage happens.

Conversion

Commingling and conversion are related, but they are not the same.

Conversion is the more severe idea.

Example:

A broker deposits earnest money into a trust account, then withdraws it to pay payroll because the brokerage is short on cash.

That is not just sloppy bookkeeping. The broker is using money held for another purpose.

A question may not use the word conversion. It may say:

• Took.
• Used.
• Borrowed.
• Spent.
• Applied to office bills.
• Paid the broker's personal debt.
• Paid commission before it was earned.
• Refused to account for funds.

Your exam response should be direct:

Trust money may be disbursed only according to the agreement or proper legal process.

Trust Account Requirements

If a broker maintains a trust account, the exam wants you to know the account is not casual.

Key exam points:

• The account must be clearly identified as a trust account.
• The broker may maintain separate trust accounts for different clients or types of trust money, but separate accounts are not always required.
• If the account earns interest, the money still must be available when it should be disbursed.
• Interest belongs where the agreement says it belongs, and if there is no special agreement, it should follow the parties entitled to the money.
• A broker may keep a reasonable amount in the account for bank service fees, but records must support that exception.
• If the broker later owns the money, such as earned compensation, the broker must remove that owned money within the required time.
• The broker must keep records for deposits and withdrawals.
• If there is activity in the account, beneficiaries must receive an accounting at least monthly.
• If a deposited check is dishonored, the broker must notify all parties in writing immediately.

That is a lot.

Use a simpler memory phrase:

Label it, record it, account for it, disburse it properly.

Disbursement

Deposit rules answer:

Where should the money go after receipt?

Disbursement rules answer:

When can the money leave?

TREC Rule 535.146 says a broker may disburse money from the broker's trust account only according to the agreement under which the money was received.

That is the default exam answer.

If a party makes a written demand for payment of trust money, the broker must pay the party or parties entitled to the money within the rule's reasonable-time period. TREC identifies that period as not later than the 30th day after the demand.

If all parties later sign a written agreement that changes where the money should go, the broker follows that later written agreement within the required time.

If the broker cannot reasonably determine who is entitled to the money, the broker may pay the money into court and let the parties fight it out there.

Do not overcomplicate this.

Exam shortcut:

Agreement first. Written demand or later written agreement next. Court if entitlement cannot reasonably be determined.

Disputed Earnest Money

Disputed earnest money is one of the easiest places to choose a tempting wrong answer.

The buyer says:

I terminated correctly. I get the earnest money back.

The seller says:

The buyer defaulted. I get the earnest money.

The agent thinks:

I know who is right.

The exam wants:

Follow the contract and proper disbursement procedure. Do not personally adjudicate the dispute.

A license holder is not the judge. A broker or escrow agent should not release disputed funds based on pressure, sympathy, or guesswork.

Look for these facts:

• Was termination timely?
• Was notice delivered properly?
• Was the option fee timely delivered?
• Did the contract say earnest money is refundable in this event?
• Did both parties sign a release or written instruction?
• Is there a written demand?
• Is the escrow agent, not the broker, holding the money?
• Is court action or interpleader the safe path?

If the question asks what the license holder should do, the best answer usually protects the money and follows the agreement, not the loudest party.

Option Fee Vs Earnest Money

Texas residential contract questions often mention both earnest money and option fee.

Do not treat them as the same thing.

Under the current One to Four Family Residential Contract, payment is applied first to the option fee, then to earnest money, then to additional earnest money. The contract also says the option fee can be released to the seller and credited to the sales price at closing.

For exam purposes, the safest point is:

Read which fund the question is asking about.

A fact about option money may not answer an earnest-money question.

A fact about earnest money may not answer an option-period question.

Property Management Money

Trust-account questions are not limited to sales.

Property management can create trust-money issues because the license holder may handle:

• Rent.
• Security deposits.
• Owner reserves.
• Repair funds.
• Tenant refunds.
• Advance fees.
• Management income not yet earned.

TREC Rule 535.146 specifically includes rent and security deposits in the trust-money definition. The property-management exam trap is that rent may pass through the broker or manager on the way to the owner.

Ask:

Is this money already the broker's earned fee, or is it being held for someone else?

If it is being held for someone else, handle it as trust money.

Property management questions may also blend math with trust-account logic. For example, a manager collects rent, deducts management fees, pays repairs, and sends a net amount to the owner.

The accounting can be tested, but the conduct issue is still the same:

Do not treat client funds as operating funds.

Broker Records

Money questions are also record questions.

TREC Rule 535.146 requires trust-account documentation to be maintained for four years from the date the document is received or created. TREC Rule 535.2 also requires brokers to maintain transaction records for at least four years from closing, termination, or the end of the transaction.

That means the broker should be able to show:

• Deposit records.
• Withdrawal records.
• Account activity.
• Beneficiary accounting.
• Written agreements.
• Demands.
• Disbursement authorization.
• Dishonored-check notice.
• Transaction communications.

The exam may not ask for an accounting ledger by name. It may ask what the broker should be able to produce after a complaint.

Safe answer:

The broker keeps complete records and can account for trust money.

Common Exam Traps

Decision Tree

Use this on any exam question involving money.

Step 1: Is money being held for another person?
If no, it may not be a trust-money question.
If yes, continue.

Step 2: Who received it?
If sales agent, deliver immediately to sponsoring broker.
If broker, apply broker trust-money rules.
If escrow agent, follow escrow and contract role.

Step 3: Where did it go?
Trust account or authorized escrow agent is safe.
Personal account, operating account, or business account is a red flag.

Step 4: Was it used?
Proper disbursement may be okay.
Office expenses, personal expenses, or premature commission are red flags.

Step 5: Who is entitled to it?
Use the agreement, later written agreement, written demand process, or court if entitlement is unclear.

If you only remember one thing:

Trust money belongs to the person entitled to it, not to the license holder holding it.

Mini Scenarios

Case 1: The Helpful Sales Agent

A buyer gives a sales agent a $3,000 earnest-money check. The sales agent says, "I will hold this until the broker is back Monday."

What is being tested?

The sales-agent rule.

The sales agent cannot maintain a trust account and should not casually hold trust money. The money should be delivered to the sponsoring broker immediately, unless the contract directs delivery to the named escrow agent and the facts support that route.

Case 2: The Operating Account

A broker receives earnest money and deposits it into the brokerage operating account because the broker plans to transfer it later.

What is being tested?

Commingling.

An operating account is not a trust account. Placing trust money there creates a trust-money violation issue even if the broker intends to move it later.

Case 3: The Property Manager

A broker manages rental homes. Tenant security deposits are deposited with the brokerage's regular business income. The broker keeps a spreadsheet showing each tenant's balance.

What is being tested?

Trust money and commingling.

A spreadsheet does not convert a business account into a trust account. Security deposits can be trust money, and mixing them with business funds is a red flag.

Case 4: The Disputed Termination

Buyer says the contract was terminated on time. Seller says the buyer missed the deadline. Both demand the earnest money.

What is being tested?

Disbursement authority.

The holder should not release funds merely because one party demands it loudly. The answer should follow the agreement, written instructions, demand process, or court procedure if entitlement cannot reasonably be determined.

Case 5: The Bounced Check

A broker deposits an earnest-money check into a proper trust account. The bank dishonors the check.

What is being tested?

Notice.

TREC's trust-money rule requires the broker to notify all parties in writing immediately when a deposited trust-money check is dishonored.

Case 6: The Earned Commission

A broker earns a fee that had been held in the trust account. The broker leaves it there for months because it is convenient.

What is being tested?

Ownership change.

Once the broker owns the money, it should not sit in the trust account indefinitely. TREC's rule sets a deadline for removing money after the broker acquires ownership.

How To Study This Topic

Do not study trust accounts by memorizing random punishment words.

Study it as a sequence.

Receive -> route -> hold -> record -> disburse

Then attach rules:

That sequence will solve most exam questions.

Also know the words the exam may use:

• Earnest money.
• Trust funds.
• Client funds.
• Security deposits.
• Rent.
• Unearned fees.
• Escrow.
• Commingling.
• Conversion.
• Fiduciary capacity.
• Disbursement.
• Interpleader.
• Written demand.
• Broker responsibility.

If the question involves money and a license holder, pause. It is probably not just a finance question.

It may be a conduct question.

Practice Questions

These are original practice questions written to teach the rule. They are not copied from the Texas exam.

Question 1

A buyer gives an earnest-money check to a sponsored sales agent. What should the sales agent do?

A. Deposit it into the sales agent's personal account until closing.
B. Maintain it in the sales agent's own trust account.
C. Immediately deliver it to the sponsoring broker, unless the contract directs proper delivery to the named escrow agent.
D. Hold it until the option period expires.

Answer: C.

Texas sales agents cannot maintain trust accounts. Trust money received by a sales agent must be delivered immediately to the sponsoring broker. If the contract directs delivery to an authorized escrow agent, follow the contract process.

Question 2

A broker receives trust money and deposits it into the brokerage operating account for two days before moving it to a trust account. What is the best exam issue?

A. Commingling.
B. Homestead.
C. Statute of frauds.
D. Intermediary appointment.

Answer: A.

Trust money should not be deposited into a personal, business, or operating account. Moving it later does not make the first step safe.

Question 3

Which is trust money under TREC's rule?

A. A broker's earned commission after closing.
B. A buyer's earnest money held pending the transaction.
C. A sales agent's personal savings.
D. The brokerage's office-rent budget.

Answer: B.

Earnest money is a classic trust-money example while it is being held under the transaction process.

Question 4

A broker holds tenant security deposits for managed rental property. Which statement is safest?

A. Security deposits can create trust-money duties.
B. Security deposits are never trust money in Texas.
C. Security deposits may be deposited in the broker's operating account if tracked by spreadsheet.
D. Security deposits become the broker's money when collected.

Answer: A.

TREC's trust-money definition includes security deposits and rent. The broker must avoid treating those funds as ordinary business income.

Question 5

A broker accepts trust money. Unless the parties have agreed in writing to a different timing rule, TREC treats reasonable deposit or delivery as no later than:

A. The end of the option period.
B. Close of business on the second working day after broker receipt.
C. Thirty calendar days after closing.
D. The next license renewal date.

Answer: B.

The benchmark is tied to broker receipt and the second working day, unless the principals agreed in writing to another timing rule.

Question 6

A buyer and seller dispute who is entitled to earnest money. The broker cannot reasonably determine who should receive it. What is a safe answer?

A. Give it to the broker's client automatically.
B. Give it to the party who complains first.
C. Pay it into court and interplead the parties if appropriate.
D. Split it without written authority.

Answer: C.

When entitlement cannot reasonably be determined, the broker may pay funds into court and allow the parties to resolve the dispute there.

Question 7

Which action is the clearest conversion-style problem?

A. Broker keeps trust-account records.
B. Broker uses earnest money to pay brokerage payroll.
C. Broker deposits trust money into a clearly identified trust account.
D. Broker notifies parties after a trust-money check is dishonored.

Answer: B.

Using money held for another person to pay brokerage expenses is not proper disbursement.

Question 8

A broker deposits a trust-money check into a trust account. The bank dishonors the check. What should the broker do?

A. Ignore it unless the seller asks.
B. Notify all parties in writing immediately.
C. Replace it from the broker's personal funds without telling anyone.
D. Wait until closing to disclose the issue.

Answer: B.

TREC's trust-money rule requires immediate written notice to all parties when a deposited trust-money check is dishonored.

Question 9

A broker keeps a small amount of money in the trust account to cover bank service fees and keeps detailed records. Which answer is best?

A. This can be allowed as a limited exception.
B. This is always criminal conversion.
C. This means all client money becomes broker money.
D. This eliminates the need for accounting.

Answer: A.

TREC's rule allows a reasonable amount for bank service fees if detailed records are kept. That exception does not permit general business use.

Question 10

Which statement about separate trust accounts is best?

A. A broker must maintain a separate account for each client in every case.
B. A broker may maintain separate accounts for different clients or types of trust money, but separate accounts are not always required.
C. A sales agent may open separate trust accounts for buyers and sellers.
D. Separate accounts eliminate recordkeeping duties.

Answer: B.

TREC allows separate trust accounts but does not require a separate account for every client or type of trust money in every situation.

Question 11

A broker later becomes entitled to money held in the trust account as earned compensation. What should happen?

A. The money should remain in the trust account forever.
B. The broker should remove the owned money within the required time.
C. The broker should transfer all trust money into the operating account.
D. The broker should pay it to the buyer automatically.

Answer: B.

Once the broker owns the money, it should be removed from the trust account within the deadline in TREC's rule.

Question 12

What is the best one-sentence exam rule for trust money?

A. Trust money belongs to the broker once received.
B. Trust money belongs to the sales agent until the broker asks for it.
C. Trust money is money held for another and must be handled, recorded, and disbursed properly.
D. Trust money is only earnest money.

Answer: C.

Trust money is broader than earnest money and must be handled as money held for another person.

Final Checklist

Before you leave this topic, make sure you can answer these from memory:

• Trust money includes client money, earnest money, rent, unearned fees, security deposits, and money held for another person.
• A sales agent cannot maintain a trust account.
• A sales agent who receives trust money must deliver it to the sponsoring broker immediately.
• A broker who accepts trust money holds it in a fiduciary capacity.
• A broker must hold trust money in a proper trust account or deliver it to an authorized escrow agent according to the agreement.
• Unless the principals agree differently in writing, the broker deposit or delivery benchmark is close of business on the second working day after broker receipt.
• Trust money must not be mixed with personal, operating, business, or other non-trust money.
• Operating-account deposit is a commingling red flag.
• Using trust money for office or personal expenses is a conversion-style red flag.
• Disbursement follows the agreement, later written agreement, written demand process, or court if entitlement cannot reasonably be determined.
• Brokers must keep trust-account records for four years.
• Property-management money can be trust money.
• Earnest money and option fees are not the same thing.

How This Connects To Other Texas Topics

Trust-account questions rarely live alone.

They connect to:

• Standards of conduct and grounds for discipline, because trust money is a conduct issue.
• Penalties, unlicensed activity, and the Recovery Trust Account, because mishandling funds can lead to discipline and is often confused with the statutory recovery fund.
• Complaints, investigations, hearings, and appeals, because trust-money problems are classic complaint facts.
• One to Four Family Residential Contract, because earnest money, option fee, notices, termination, and escrow agent facts often come from the contract.
• Promulgated contracts, forms, and addenda, because the form language controls many money-handling deadlines and remedies.

Frequently Asked Questions

Is trust accounts on the Texas real estate exam?

Yes. Pearson's Texas Sales Agent state-law outline lists Trust Accounts under Standards of Conduct, which has 9 scored items on the state-law portion. It can also appear inside contract, complaint, broker responsibility, and discipline fact patterns.

What is trust money in Texas real estate?

For exam purposes, trust money means money held for another person. TREC's rule includes client money, earnest money, rent, unearned fees, security deposits, and similar funds held on behalf of another person.

Can a Texas sales agent have a trust account?

No. A sales agent cannot maintain a trust account. If a sales agent receives trust money, the safe exam answer is immediate delivery to the sponsoring broker, unless the facts require proper delivery to the named escrow agent under the contract.

Does every Texas broker need a trust account?

No. TREC's FAQ says a broker is not required to have a trust or escrow account unless the broker agrees to hold money belonging to others or to act as an escrow agent. If the broker does accept trust money, the trust-money rules apply.

What is commingling in Texas real estate?

Commingling means mixing trust money with personal, operating, business, or other non-trust money. Depositing earnest money into a broker's operating account is a classic exam red flag.

What is conversion?

Conversion means using money held for another person as if it were your own. Paying office expenses, payroll, personal bills, or premature compensation from trust money can create a conversion-style issue.

What happens if earnest money is disputed?

The holder should follow the agreement and proper disbursement process. If entitlement cannot reasonably be determined, the broker may pay the money into court and interplead the parties. Do not assume the license holder gets to decide based on personal opinion.

How fast must a broker deposit trust money in Texas?

Unless the principals agree differently in writing, TREC treats reasonable timing as deposit in a trust account or delivery to an authorized escrow agent by close of business on the second working day after the broker receives the trust money.

Is earnest money the same as the option fee?

No. Earnest money is a deposit held under the transaction process. The option fee is consideration for the buyer's unrestricted right to terminate during the option period. Texas contract questions often test the difference.

Can the Texas real estate exam prep app help me practice this?

Yes. The Texas real estate exam prep app can help you practice trust accounts, earnest money, commingling, conversion, broker responsibility, property-management funds, escrow-agent facts, and disputed disbursement questions with original Texas-focused explanations. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Is this article legal or brokerage advice?

No. This is educational exam prep. For real-world trust accounts, escrow, earnest money, disputed funds, property management, contract deadlines, broker supervision, complaint, discipline, or transaction questions, verify current official sources and consult the right qualified professional.

Primary-Source Verification Note

This article was verified on June 16, 2026 against the Pearson VUE Texas Real Estate Content Outlines effective January 1, 2026, TREC Rule 535.146 on maintaining trust money, TREC Rule 535.2 on broker responsibility, TREC's contracts page, and the TREC One to Four Family Residential Contract Form 20-18 effective January 3, 2025. Texas contract forms and TREC rules can change, so always verify the current official source before relying on a deadline or form in practice.

Sources And Methodology

• Pearson VUE Texas Real Estate Content Outlines
• TREC Rules
• TREC Contracts page
• TREC One to Four Family Residential Contract Form 20-18
• TREC complaint process

I wrote this as an exam-prep guide, not a legal treatise. The method was to start with Pearson's tested outline, map the official TREC trust-money rules into candidate-friendly decision points, separate broker rules from sales-agent rules, add contract context for earnest money, and then turn the highest-risk traps into original practice questions.