Real estate agents and attorneys handle other people’s money. They must ensure that all fees listed on the HUD 1 settlement sheet are paid and that every penny of the funds is accounted for. When mishandled, trust management can expose a real estate office to serious liability.
Administering Trusts By Hand
Real estate professionals, particularly solo or small offices, may try to manage their trust accounts manually. After all if you have only one sale in process at any given time, how hard is it to track all the money? However manual management is a mistake. Trust administration is complicated and mistakes could lead to fines, legal action or even loss of a real estate license. Even the smallest offices will sometimes have multiple sales going on, and how do you ensure that one buyer’s funds don’t inadvertently pay another buyer’s fees?
Some agents get around this by opening multiple trust accounts, one for each sale. The idea is that since each account has only the funds from one sale there is no chance of comingling. Although this idea is sound in principle, it ends up simply being complicated and expensive. A better option is to use dedicated HUD settlement statement software with trust management built in.
Administering Trusts With Real Estate Accounting Software
Easy HUD doesn’t just streamline closing paperwork. The optional Easy Trust module handles all your trust transactions so you don’t have to worry about them. You can easily manage multiple trusts in a single bank account, while still keeping all monies separate so you don’t accidentally comingle funds. You can generate one check from multiple trusts, such as paying several inspection fees to one agency, or deposit one check and allocate to multiple trusts, such as divvying up an insurance incentive check.
Trust administration requires more than simple arithmetic. Short of hiring an experienced — and expensive — accountant, your best option is to use software that contains the accounting expertise you need. The fact Easy Trust is designed to work with Easy HUD means you don’t have to wrestle with manually transferring data from one program to another.
Don’t let your real estate business operate one more day without the software you need. Easy Soft’s real estate agent and attorney practice management software is designed to streamline your office and handle the complicated calculations and forms involved in real estate. Try Easy HUD and Easy Trust together risk free for 30 days.