10/07/2026
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Trust Account vs Operating Account: What Happens During a Trust Shortage?
What happens if there is a trust account shortage in a real estate brokerage?
Real estate brokerages typically maintain separate accounts, including:
✔️ Trust Account – Holds money belonging to clients, such as deposits.
✔️ Operating Account – Used for brokerage business expenses.
When acting as the listing brokerage, a buyer’s deposit is usually held in the trust account.
But mistakes can happen.
Examples may include:
✔️ A deposit cheque bouncing
✔️ An accounting or commission transfer error
✔️ Incorrect funds being transferred out
Brokerages maintain trust ledgers and reconciliations to track deposits, withdrawals, and balances. If a shortage is discovered, it must be investigated and corrected immediately.
The broker is ultimately responsible for ensuring trust funds are properly handled and shortages are addressed.
Using trust funds improperly — such as using client money for investments or unauthorized purposes — is a serious violation and can lead to severe regulatory consequences.
Understanding trust accounting is a critical concept in Alberta real estate brokerage practice.