Wis. Admin. Code Real Estate Examining Board REEB 18.031 - Deposits and types of accounts
(1) TIME OF
DEPOSIT. A firm shall deposit all real estate trust funds received by the firm
or licensees associated with the firm in a real estate trust account within 48
hours of receipt of the trust funds. If funds are received on a day prior to a
holiday or other day when the depository institution is closed, the firm shall
deposit the funds within the next 2 business days. If a firm receives funds
which cannot be deposited by the firm, the firm shall, no later than one
business day after receipt, either:
(a)
Forward the funds to the payee, if someone other than the firm.
(b) Return the funds to the payer.
(2) DUTY OF LICENSEES. A licensee
who receives real estate trust funds shall promptly submit the funds to the
firm of the licensee.
(3)
INTEREST-BEARING ACCOUNTS.
(a) Client funds
shall be deposited in an interest-bearing common trust account and the
department of administration shall be the beneficial owner of the interest
accruing to the account, minus any service charges. At no time may the firm
remove or use the interest earned on such accounts.
(b) Real estate trust funds, other than
client funds, may be deposited in an interest-bearing account if the firm
obtains from the persons for whom the funds are being held written
authorization to deposit the funds in an interest-bearing account and if the
authorization specifies how and to whom the interest will be disbursed. None of
the interest earned on the funds deposited into an interest-bearing account may
inure to the benefit of the firm.
(4) SECURITY DEPOSITS. A licensee having an
ownership interest in a rental property shall either place security deposits
related to that property in a real estate trust account or shall provide in a
lease for security deposits to be held in an account maintained in the name of
the owner or owners.
(5) RENTAL
OWNER'S ACCOUNT.
(a) In this subsection,
"owner's account" means an account maintained by an owner of rental property
for depositing and disbursing any funds payable to or by the owner.
(b) A firm may directly deposit into an
owner's account rental application deposits, rents and security deposits which
may have been made payable to one or more owners. The firm or licensee
associated with the firm may be designated as a signatory on the owner's
account and may make disbursements from that account to the extent authorized
by the owner in writing.
Notes
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