What funds can be held in an escrow or trust account in Indiana?

In Indiana, an escrow or trust account is specifically designed to hold funds that belong to others. This is a fundamental aspect of real estate transactions, ensuring that clients' money is safeguarded and properly managed. When funds are placed into an escrow or trust account, they are typically related to earnest money deposits, security deposits, or funds for closing costs, and they are held in trust for the benefit of a third party until certain conditions are met, such as the completion of the sale or meeting other contractual obligations.

Holding personal funds of a broker, fees for broker services, or commissions in an escrow account is not appropriate due to the established regulations aimed at protecting consumer funds, avoiding commingling of funds, and maintaining clear financial practices. Therefore, the correct response emphasizes the importance of managing funds that are not the property of the broker, thereby promoting trust and accountability in real estate transactions.