Money received by dealer on behalf of another: Deposit in separate account; records; inspection and audit; restrictions on withdrawal of money deposited pursuant to written contract; provision of certain financial information to Division.
1. All down payments, deposits of earnest money, proceeds of loans or other money which a dealer receives, on behalf of his principal or any other person, must be deposited in a separate checking account, which must be designated a trust account, in a financial institution in this state whose deposits are insured by an agency of the Federal Government or by a private insurer approved pursuant to NRS 678.755.
2. Every dealer required to maintain a separate or trust account shall keep records of all money deposited therein. The records must clearly indicate the date and from whom he received money, the date deposited, the dates of withdrawals, and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. All such records and money are subject to inspection and audit by the Division and its authorized representatives. All such separate trust accounts must designate the dealer as trustee and provide for the withdrawal of money without previous notice.
3. All money deposited in a separate trust account from down payments, deposits of earnest money, proceeds of loans or other money received by a dealer from a person pursuant to a written contract signed by the dealer and that person must not be withdrawn from the account except to pay specific expenses as authorized by the written contract.
4. Each dealer shall notify the Division of the names of the financial institutions in which he maintains trust accounts and specify the names of the accounts on forms provided by the Division.
Last modified: February 25, 2006