How must a broker handle money from other people?
This page explains BPC § 10145: Broker-controlled trust funds.
A broker must protect money received for someone else. The broker must place it with the owner, in a neutral escrow, or in a proper trust account. The broker may pay it out only under written instructions from the person who gave the money.
Key points
The money does not belong to the broker.
A trust account must meet state rules.
Written instructions control when money may be paid out.
Good records must show where the money went.
What this can look like
A buyer gives a broker a deposit. The broker cannot place that money in the broker’s business account. It must go to one of the places allowed by law.
What the law says
The principal trust-fund statute for DRE-licensed brokers who receive money belonging to others in a regulated real-estate transaction.
The official text governs deposit, authorized withdrawals, interest-bearing accounts, recordkeeping, and examination authorizations. It defines “neutral escrow” by reference to a Division 6 licensee and specified exempt providers. 1
DRE’s escrow-activity reporting page states that exempt brokers cross a reporting threshold when they conduct five or more transactions or at least one million dollars in escrow activity during a calendar year. 2
Agency interpretation
The 2025 DRE/DFPI joint bulletin states that DRE licensees conducting broker-controlled escrow must disburse money only according to the written instructions of the party or parties who paid the money into escrow. 3
The advisory is a current agency statement about disbursement practices. It is not a historical explanation for the original enactment of section 10145.
Important history
Research gaps
The original enactment record, major amendment packets, and a source-by-source comparison with DFPI and CDI safeguards remain open. The Atlas therefore does not yet state that the three regimes impose equivalent duties.
Key sources
These are the main records for checking this explanation. Numbered citations above link to the full list.
- 1California Business and Professions Code section 10145
Primary authority · Current statute · California Legislature
View source record - 2Escrow Activity Reporting
Official agency material · Agency guidance · California Department of Real Estate
View source record - 3DFPI and DRE Joint Bulletin: Real Estate Commission Disbursements
Official agency material · Joint agency advisory · California DRE and DFPI
View source record
Full research packet (3 sources)
- 1California Business and Professions Code section 10145
Primary authority · Current statute · § 10145(a)–(i)
View source record - 2Escrow Activity Reporting
Official agency material · Agency guidance · Reporting threshold and required information
View source record - 3DFPI and DRE Joint Bulletin: Real Estate Commission Disbursements
Official agency material · Joint agency advisory · Full advisory and footnotes
View source record
Article revisions
Version 1.0 · Last checked July 23, 2026 · Current through July 23, 2026. This article predates the proposed EIC review workflow. No EIC approval is claimed.
URL: https://escrowpedia.org/wiki/bpc-10145