If a broker is operating a real estate business under a trade name, how should the trust account be titled?

When a broker operates under a trade name, the trust account should be titled in a manner that clearly identifies the licensed broker who is responsible for the account. Using the broker's name followed by the words "responsible broker" emphasizes the accountability of the broker in managing the trust account.

This practice meets regulatory requirements, as it ensures that anyone looking at the trust account can immediately see who is responsible for the funds held within it. This is critical for maintaining clear and transparent financial practices, especially in the real estate industry where trust accounts handle client funds. It provides clear ownership, which is essential not only for legal purposes but also for maintaining customer trust.

Other options may not convey the necessary responsibility or could cause confusion regarding who manages the account. For example, simply using the company name followed by “trust” may imply that a corporation rather than a specific individual is responsible, potentially obfuscating accountability. Therefore, using the phrase "responsible broker" is the proper method for titling a trust account when operating under a trade name.