Illinois License Law
What is a 'trust account' (also called client funds account) in Illinois real estate?
AA personal savings account where brokers keep their commissions
BA separate bank account maintained by the brokerage to hold client funds (earnest money, security deposits) separate from brokerage operating funds✓ Correct
CAn investment account managed by the managing broker for clients
DAn account required only by brokerages managing over 10 properties
Explanation
Under Illinois law and IDFPR regulations, brokerages must maintain trust accounts (client funds accounts) that are completely separate from the brokerage's own operating funds. Trust accounts hold earnest money, security deposits, and other client funds. Commingling (mixing) client funds with brokerage funds is prohibited and is a serious license law violation.
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