Trust Fund Signatories: What You Need to Know

Published: November 14, 2025

DRE regularly receives questions about signatories on trust fund accounts. Below are answers to two of the most common questions about who can sign and under what circumstances.

Can a property owner sign on a real estate broker’s trust account?

The short answer to this question is "No," but the actual answer is a bit more nuanced and can be ascertained from Business and Professions Code (B&P Code) section 10145. The relevant part states that "all funds deposited by the broker in a trust fund account shall be maintained there until disbursed by the broker in accordance with instructions from the person entitled to the funds."

The code section further specifies that withdrawals from a trust account of an individual broker require that broker's signature. In the case of a corporate broker, the signatory must be an officer, specifically the designated officer, through whom the corporation is licensed pursuant to B&P Code section 10211.

Alternatively, withdrawals may be made with the signature of one or more of the following people, if specifically authorized to do so in writing by the individual broker or designated officer:

1. A real estate salesperson licensed to the broker
2. Another broker acting pursuant to a written agreement with the broker
3. An unlicensed employee of the individual broker, if the broker has fidelity bond or insurance coverage equal to at least the maximum amount of the trust funds to which the unlicensed employee has access at any time and said coverage meets the other requirements as provided in Section 10145(a)(2) (B&P Code section 10145(a)(2))

Generally, a property owner is not included within the guidelines above.

Any arrangements a real estate broker makes to add signatories to a trust fund account will not relieve them from responsibility or liability in the handling of trust funds in their custody.

Once a real estate broker receives trust funds, they have a fiduciary responsibility to handle and account for these funds in accordance with B&P Code section 10145. A real estate broker must maintain and be in full control of the funds.

Can a real estate broker sign on the property owner’s general account?

The answer to this question depends on the duties or services the real estate broker will perform.

Will the broker do work that requires a real estate license? If yes, will the broker have access to trust funds or, in other words, funds that do not belong to the broker? If the broker will have access to a beneficiary’s trust funds, they must comply with B&P Code section 10145 and the related trust fund record keeping requirements. Having both the real estate broker and the property owner as signatories on the same general account does not meet the provisions of B&P Code section 10145, as noted above.

Being proactive in complying with trust fund record keeping requirements, including the rules around required signatures, will help ensure the success of a broker’s real estate business while also protecting the public.