agency
accounting
Accounting is the fiduciary duty requiring an agent to safeguard and account for all money and property received on behalf of a principal or others in a transaction. It includes depositing funds such as earnest money into a proper trust or escrow account on time, keeping accurate records, and never commingling or converting client funds. Deposit deadlines and recordkeeping rules vary by state.
- Exam tip
- Accounting ties directly to trust account rules. Exam questions often pair it with commingling (mixing funds) and conversion (using client funds personally) as violations of this duty.
- Example
- A buyer's agent receives a $5,000 earnest money check and deposits it into the broker's escrow account within the time required by state rules, logging the receipt.
Related terms & state variants
Sources
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Last verified: 2026-10-23