Mismanaged Trust Accounts Can Sink Your Real Estate Business
People new to the real estate industry are often surprised to discover that the sale or purchase of property is only one small part of the overall job. There is a tremendous amount of administrative support required for each transaction, none as important as trust fund accounting.
When you receive money to be disbursed to other parties such as another real estate agent, the government or a home inspection agency, you need to be certain that every penny listed on the HUD settlement statement form ends up where it needs to go. And when we say “every penny” we mean that literally. If you misplace even a cent out of hundreds of thousands of dollars then you could be subject to serious penalties.
You may think that it’s not that complicated. You simply look at the amounts list on HUD forms and pay accordingly, right? That might be true if you are handling one client, but any successful real estate professional has multiple deal in the works at one time. Agencies that employ multiple agents might process dozens of sales in a day. All of that money is being funneled through a single trust account, and if the money from Mr. Smith ends up paying expenses for Mr. Jones then you have a problem.
HUD settlement statement software helps you keep track of all the various charges associated with a given transaction including taxes, fees and commissions. It simplifies the process of completing this long and complicated form and takes care of everything from spellchecking to arithmetic. Unfortunately it doesn’t track your trust transactions.
That is unless you use HUD software that integrates with trust software. That’s why our products Easy HUD and Easy Trust are designed to work together. Export your ledger from Easy HUD for quick import into Easy Trust and you can effortlessly track all your trust transactions. You can view each client’s balance and transactions within your trust account separately, ensuring that all the money is accounted for and all the necessary fees are paid.
This kind of integration is the kind of attention to detail you can expect from Easy Soft legal practice management software. Visit our website to find out more about how our software simplifies your real estate or legal practice, leaving you more time to service clients.