1. All down payments, deposits of earnest money, proceeds of loans or other money which a dealer receives on behalf of his or her principal or any other person must be deposited in:
(a) An escrow account maintained by an escrow agent or escrow officer licensed pursuant to chapter 645A or 692A of NRS; or
(b) 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 672.755.
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 the dealer 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 pursuant to NRS 489.7235. All such separate trust accounts must designate the dealer as trustee and provide for the withdrawal of money without previous notice. The dealer shall balance each separate trust account at least monthly. The dealer shall provide to the Division, on a form provided by the Division, an annual accounting which shows an annual reconciliation of each separate trust account.
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received by a dealer from a person pursuant to a written contract signed by the dealer and that person must not be withdrawn from the account except to pay specific expenses as authorized by the written contract. The dealer is personally responsible and liable for such money at all times. A dealer shall not permit any advance payment of money belonging to another person to be deposited in the dealer’s business or personal account or to be commingled with any money the dealer has on deposit.
4. Each dealer shall notify the Division of the names of the financial institutions in which the dealer maintains trust accounts and specify the names of the accounts on forms provided by the Division.
(Added to NRS by 1983, 379; A 1985, 810; 1997, 212; 1999, 1506; 2009, 1923)
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