§ 11:5-4.3 Use of License for the Benefit of Others +22New Jersey · Real Estate · English

No licensee may enter any arrangement, direct or indirect, whereby an individual lends his name or license for the benefit of another person, firm, or corporation, or circumvents the licensing statutes and rules. Lending a broker's license includes any arrangement where a broker fails to personally oversee and direct the business operations.

• ✓No arrangement may allow a licensee to lend name or license for another's benefit or circumvent licensing rules
• ✓License lending includes a broker failing to personally oversee and direct the business of which he is broker of record/employing broker
• ✓This section does not limit the broker's duty to ensure adequate office supervision under N.J.A.C. 11:5-4.4 and 4.5

For purposes of the license-lending rule, personal oversight and direction of the business requires the broker to be physically present in the main or branch office at least one day each week (excluding vacations and emergencies). Communication solely by telephone and/or mail for an extended period may be treated by the Commission as evidence of prohibited license lending.

• ✓Broker must be physically present in the office at least one day each week (excluding vacations/emergencies)
• ✓Communication by phone/mail alone for an extended period may be evidence of prohibited license lending

A real estate broker is a person, firm, or corporation who, for a fee/commission/valuable consideration (or expectation thereof), lists, sells, exchanges, buys, rents, or negotiates real estate; collects rent; solicits prospects; assists in procuring prospects; negotiates mortgage loans; or conducts competitive sales of land. It also includes any person, firm, or corporation who supervises a real estate referral company.

• ✓A broker acts for fee, commission, or other valuable consideration or expectation thereof
• ✓Broker activities include listing, selling, exchanging, buying, renting, negotiating, collecting rent, and soliciting prospects
• ✓A broker includes any person who supervises a real estate referral company

A real estate salesperson is a natural person who, for compensation, is employed or contracted by and operates under the supervision of a licensed broker to perform brokerage activities such as buying, selling, negotiating, leasing, renting, collecting rents, or soliciting prospects. In the case of a salesperson licensed with a referral company, they refer prospective consumers to a particular broker.

• ✓A salesperson must be a natural person operating under the supervision of a licensed broker
• ✓A salesperson works for compensation, commission, or valuable consideration
• ✓The definition includes a salesperson licensed with a referral company unless otherwise indicated

A real estate broker-salesperson is a natural person qualified to be licensed as a broker but who, for compensation, is employed or contracted by and operates under the supervision of a licensed broker to perform the functions of a salesperson.

• ✓A broker-salesperson is qualified to be a broker but works under a broker's supervision
• ✓A broker-salesperson performs the functions of a salesperson

A salesperson licensed with a real estate referral company is limited to referring prospects for the sale, purchase, exchange, leasing, or rental of real estate. They may only refer prospects to the broker who supervises the referral company through whom they are licensed and may only accept compensation from that broker. They may not be licensed with more than one broker/referral company, may not simultaneously be a broker or broker-salesperson, and may not engage in broker activity beyond their status.

• ✓Referral company salespersons are limited to referring prospects only
• ✓They may only refer to and accept compensation from their supervising broker
• ✓They may not be licensed with more than one broker or referral company at a time
• ✓They may not simultaneously hold a broker or broker-salesperson license

No person, firm, partnership, association, or corporation may bring or maintain any court action for collection of compensation for brokerage acts without alleging and proving they were a duly licensed broker at the time the cause of action arose. A salesperson/broker-salesperson may only sue the broker with whom they were employed/contracted and must prove licensure at the time.

• ✓A party must prove they were a duly licensed broker at the time to sue for compensation
• ✓A salesperson or broker-salesperson may only sue their employing broker for compensation
• ✓The claimant must allege and prove valid licensure at the time the cause of action arose

A real estate referral company is a business entity established and supervised by a licensed broker, separate from any other business entity of that broker, for the purpose of employing/contracting salespersons who strictly engage in referring prospects solely on behalf of the supervising broker.

• ✓A referral company must be established and supervised by a licensed broker
• ✓It must be separate and apart from the broker's other business entities
• ✓Its salespersons strictly refer prospects solely on behalf of the supervising broker

Successfully completing one or more broker pre-licensure education courses during a biennial term is deemed to fulfill the CE requirement for the license being renewed. A salesperson initially licensed in the FIRST year of a two-year term must complete all applicable CE to renew. A salesperson initially licensed in the SECOND year of the two-year term is NOT required to fulfill any CE to renew at the end of that term.

• ✓Completing broker pre-licensure courses during the term satisfies the CE requirement for renewal
• ✓A salesperson licensed in the first year of the term must complete all CE; one licensed in the second year owes no CE for that renewal

A buyer's agent owes duties of loyalty (no action adverse to buyer), timely disclosure of conflicts, advising the buyer to seek expert advice, non-disclosure of confidential information (even after termination), and good-faith continuous effort to find a property. Only duties (4) and (5) may be waived.

• ✓Loyalty means taking no action adverse or detrimental to the buyer's interest
• ✓Confidential information may not be disclosed even after termination, except as authorized or required by law
• ✓Good-faith effort to find property ends once the buyer is under contract no longer subject to attorney review
• ✓Only the confidentiality and continuous-effort duties may be waived

Showing a property of interest to other prospective buyers does not breach loyalty. Acting as transaction broker for or representing more than one buyer in competing transactions on the same property does not breach loyalty or create a conflict.

• ✓Showing the same property to other prospective buyers is not a breach of loyalty
• ✓Representing multiple buyers competing for the same property is not a conflict of interest

The Education Bureau issues Certificates of Examination Eligibility to: broker candidates who fulfilled or had waived (per N.J.A.C. 11:5-3.8 and 2.1(e)) the broker experience and/or education requirements; instructor candidates who fulfilled or had waived (per N.J.A.C. 11:5-2.2(k)) the instructor education requirement; and salesperson or salesperson (referral) candidates who had the education requirement waived per N.J.A.C. 11:5-2.1(e).

• ✓Broker, instructor, and salesperson candidates receive eligibility certificates once requirements are met or waived
• ✓Certificates confirm fulfillment or waiver of applicable education/experience requirements

Public adult education programs and accredited colleges/universities cannot be licensed as real estate schools unless the pre-licensure program is supervised by a director who is either a licensed real estate instructor or an individual of demonstrated good moral character who attended a commission-approved instructor course within two years of applying. Temporary authorization may be issued if the director dies or is incapacitated. New courses cannot begin until a qualified director is approved.

• ✓Program director must be a licensed instructor OR have good moral character and completed an approved instructor course within 2 years
• ✓Commission may issue temporary authorization upon director death/incapacity
• ✓New courses cannot commence until a qualified director is approved

A broker who ceases to be active must, within five business days, return to the Commission his own license and the licenses of all salespersons, broker-salespersons, and salespersons (referral) for cancellation. Each employee's license must be accompanied by a termination letter per N.J.S.A. 45:15-14.

• ✓Broker must return all licenses within 5 business days of ceasing business
• ✓Employee licenses must be accompanied by a letter terminating employment
• ✓Return is for cancellation of the licenses

A sole proprietor, partnership broker of record, or corporate broker of record may not be relicensed unless, within 30 days of ceasing business, an affidavit is submitted certifying: all licenses returned; trust account closed and funds disbursed; all commissions paid; outstanding future commissions listed; principals in ongoing transactions notified in writing; signs removed and recalled; telephone services advised; no outstanding fines; and records maintained for six years.

• ✓Affidavit must be submitted within 30 days of ceasing brokerage business
• ✓Trust account must be closed and all trust funds disbursed to proper parties
• ✓All principals in ongoing transactions must be notified in writing of disposition
• ✓No outstanding fines or penalties may be owed to the Commission
• ✓Broker must maintain records for six years and provide the depository address

A new broker of record may not be substituted unless the new and former brokers submit a joint affidavit certifying that trust fund custody was assumed and accounted for, all commissions are paid to date, the new broker will pay future commissions, no fines are owed (with joint and several liability for pre-substitution fines), signs/advertisements updated, records turned over and to be maintained six years, and the new broker will transact business in the firm's name.

• ✓Both new and former brokers of record must submit a joint affidavit
• ✓New broker must assume custody of all trust funds and confirm they are accounted for
• ✓Both brokers are jointly and severally liable for fines assessed after substitution for pre-substitution actions
• ✓New broker must maintain firm records for six years and transact in the firm's name

Every resident real estate broker not licensed as a broker-salesperson must maintain a main office in New Jersey open to the public during usual business hours, under the direct, full-time supervision of the broker or a broker-salesperson. The supervisor need not be present continuously but must be reachable at all times, employed full-time, physically present at least five days per calendar week (excluding vacations/emergencies), and not otherwise employed during that time.

• ✓Broker (not a broker-salesperson) must maintain a NJ main office open to the public during usual business hours
• ✓Main office must be under direct, full-time supervision of the broker or a broker-salesperson
• ✓Supervisor must be reachable at all times and physically present at least five days per calendar week (excluding vacations/emergencies)
• ✓Supervisor must be full-time and not otherwise employed during that time
• ✓If a broker-salesperson supervises, the broker remains ultimately responsible for all activities

If a main office is located in a residence, it must be independent of living quarters and have a separate exterior entrance plainly visible from a street on which the premises has frontage (this does not apply to offices existing before December 1, 1963). No broker's place of business may be located in the dwelling of any salesperson or salesperson (referral) in that broker's employ.

• ✓A residential office must be independent of living quarters with a separate exterior street-visible entrance
• ✓The residence-office rule does not apply to offices in existence prior to December 1, 1963
• ✓No broker's place of business may be in the dwelling of any salesperson or salesperson (referral) in that broker's employ
• ✓Sole proprietor and broker of record must supervise brokerage activity regardless of where it occurs

Not less than 50% of required CE must consist of core topics, and the commission cannot require core topics to exceed 60% of total CE hours. Core topics are: agency; disclosure; legal issues; ethics (not less than two hours); fair housing; rules and regulations; real estate licensee safety; financial literacy and planning; and any other topics NJREC prescribes by rule. Each hour of instruction equals one credit.

• ✓At least 50% but no more than 60% of required CE hours must be comprised of core topics
• ✓Ethics core topic must be not less than two hours; each hour of instruction equals one credit

Notwithstanding the general core-topic percentages, NJREC requires that each biennial term's CE include at least one hour on the core topic of fair housing and housing discrimination. Additionally, a continuing education course on agency must be completed by every broker, broker-salesperson, and salesperson each biennial license term as a condition of renewal.

• ✓At least one hour on fair housing and housing discrimination is mandatory each biennial license term
• ✓An agency CE course is required of every licensee each biennial license term as a condition for renewal

A firm performing services for a seller is a seller's agent unless it represents the buyer, both, is a transaction broker, or the affiliated licensee is a buyer. The seller brokerage services agreement must be entered before or as soon as practical after services begin and must include MLS circulation disclosure.

• ✓Must enter a brokerage services agreement with the seller before or as soon as practical
• ✓Must state whether the listing will be circulated on an MLS or similar database
• ✓Seller's agent shall not submit to any MLS-type service that prohibits an offer from being displayed regarding compensation notices
• ✓Dual/designated agency consent requires separate initialing or signature

A seller's agent owes loyalty, timely disclosure of conflicts, advising the seller to seek expert advice, non-disclosure of confidential information even after termination, and good-faith continuous effort to find a buyer (ending once under contract no longer subject to attorney review).

• ✓Confidential seller information may not be disclosed even after termination except as authorized or required by law
• ✓Continuous effort to find a buyer ends once the property is under contract no longer subject to attorney review
• ✓Only the confidentiality and continuous-effort duties may be waived

Showing properties not owned by the seller or listing competing properties does not breach loyalty. Acting as transaction broker for or representing more than one seller in competing transactions involving the same buyer does not breach loyalty.

• ✓Listing competing properties is not a breach of loyalty
• ✓Representing multiple sellers competing for the same buyer is not a conflict of interest

After receiving complete, accurate forms with correct fees, the Education Bureau generally processes: instructor/school/additional teaching location licenses—three weeks; school address changes—three weeks; relicensure with new directors/owners—three weeks; renewals of instructor/school/location licenses—four weeks; education/experience waivers not requiring additional review—four weeks; broker experience approvals—four weeks; CE provider/instructor/course approvals—three weeks after the Advisory Committee recommendation is considered; and CE requirement waivers—three weeks after receipt.

• ✓Initial license applications are processed in about three weeks; renewals in about four weeks
• ✓Waivers not requiring additional review and broker experience approvals take about four weeks
• ✓CE approvals take three weeks after the Voluntary Advisory Committee recommendation is considered

The Education Bureau uses standardized forms including applications for: non-public and public school licenses; additional teaching location licensure; instructor license; change of address of administrative office/primary teaching location; relicensure with new director/owner or name change; waiver of salesperson prelicensure education; partial waiver of broker education/experience; broker experience report; NJ State Police Criminal History Record Information Form; and CE provider, instructor, and course approval applications.

• ✓Distinct forms exist for non-public vs. public school license applications
• ✓Separate forms handle relicensure with new director/owner and school name changes

A duly licensed NJ broker may pay a referral fee or commission to a licensed real estate broker of another jurisdiction where that broker maintains a bona fide office. The out-of-state broker may make referrals, receive fees, and sue a NJ broker for collection. 'Referral' means introducing, assisting, or directing a person from one broker to another for brokerage services.

• ✓A NJ broker may pay referral fees to an out-of-state licensed broker with a bona fide office
• ✓An out-of-state broker may bring an action in NJ courts to collect a referral fee
• ✓Referral means introducing, assisting, or directing a person from one broker to another

The commission may suspend or revoke a real estate school or instructor license, or impose fines under R.S.45:15-17, for various forms of misconduct including misrepresentation, unworthiness, failing to provide written tuition agreements, using lotteries/contests to attract students, criminal conviction, procuring a license by fraud, or falsely stating a person completed a course.

• ✓Making false promises or substantial misrepresentation is grounds for discipline
• ✓Failing to give students a written agreement of tuition charges and refund policy is a violation
• ✓Using lotteries, contests, games, prizes, or drawings to attract students is prohibited
• ✓Falsely stating a person attended or completed a course is grounds for discipline
• ✓Any conduct constituting fraud or dishonest dealing is grounds for discipline

Schools and instructors must be licensed under N.J.S.A. 45:15-10.4 and 10.5. License terms run two years (March 1 to last day of February two years later). Applicants must demonstrate good moral character and absence of disqualifying convictions (N.J.S.A. 45:15-12.1). Denials are appealable to the full Commission (N.J.A.C. 11:5-11.10). Public adult education programs and accredited colleges/universities are presumed qualified if led by a licensed instructor or qualified individual.

• ✓School and instructor license terms run two years, from March 1 to the last day of February of the second following year
• ✓Applicants must demonstrate good moral character and absence of disqualifying convictions under N.J.S.A. 45:15-12.1
• ✓Denials of school/instructor applications may be appealed to the full Commission
• ✓Every licensed school must maintain a bona fide office open to the public during normal business hours

No broker-salesperson or salesperson may commence business activity for a broker, and no broker may authorize them to act, until a written agreement signed by both parties recites the terms under which the services have been retained. The business affiliation may be an employment relationship or an independent contractor relationship, which must be defined in the written agreement.

• ✓A signed written agreement is required before a salesperson/broker-salesperson commences activity
• ✓The written agreement must recite the terms under which services were retained
• ✓The affiliation may be employment or independent contractor, as defined in the agreement

A firm may act as a disclosed dual agent only with the informed consent of both parties (in signed brokerage services agreements for residential, or otherwise in writing for commercial). Duties include taking no action adverse to either party, disclosing conflicts, advising both to seek expert advice, and not disclosing confidential information about either party.

• ✓Requires informed consent of BOTH parties
• ✓A disclosed dual agent shall not advocate terms favorable to one principal to the detriment of the other
• ✓Confidential information about either party may not be disclosed even after termination
• ✓Residential consent must be in signed brokerage services agreements; commercial otherwise in writing

Notwithstanding R.S.45:15-17(i), a disclosed dual agent may receive compensation through its firm from either or both parties if sources and amounts are disclosed in writing to both. Showing competing properties, showing to other buyers, or presenting additional offers is not adverse conduct.

• ✓May be compensated by both buyer and seller if disclosed in writing to both
• ✓Showing competing properties or presenting additional offers does not create a conflict of interest

Key Education Bureau fees: school license application—$100.00; instructor license application—$50.00; initial non-public school license—$400.00 (first year of term) or $200.00 (second year); non-public school renewal—$400.00 plus $200.00 per additional location; additional teaching location license—$200.00 (first year) or $100.00 (second year); instructor license—$200.00 (first year) or $100.00 (second year); instructor renewal—$100.00. Criminal history check and fingerprint scanning are paid directly to the State-contracted vendor.

• ✓School license application fee is $100.00; instructor application fee is $50.00
• ✓Initial fees are prorated: full amount in the first year, half in the second year of a term
• ✓Instructor renewal is $100.00; non-public school renewal is $400.00 plus $200.00 per additional location

Other Education Bureau fees: change of school address—$50.00; change of school name—$100.00; change of name for an individual—$50.00; change of school director—$50.00; application for waiver of salesperson education—$25.00; waiver of broker education or experience—$25.00; and approval of experience report for broker license applicant—$25.00.

• ✓School name change is $100.00; school address change and individual name change are $50.00 each
• ✓Waivers of salesperson/broker education, broker experience, and experience report approval are $25.00 each

Every branch office must comply with N.J.A.C. 11:5-4.4 (Maintained offices). No branch license may be issued for an office in the dwelling of a salesperson (referral), salesperson, or broker-salesperson. A branch must be under the direct supervision of a licensed broker employed as a broker-salesperson, who must devote full time to managing the office during usual business hours. The supervisor's name must be recorded with the Commission at all times.

• ✓Every branch office must comply with N.J.A.C. 11:5-4.4
• ✓No branch license may be issued for an office in the dwelling of a salesperson (referral), salesperson, or broker-salesperson
• ✓A branch must be under the direct supervision of a licensed broker employed as a broker-salesperson who devotes full time to it
• ✓The supervisor's name must be recorded with the Commission at all times

A branch office license must specify the broker's name and branch address and be conspicuously displayed at all times in the branch. The branch must prominently display the name of the broker-salesperson in charge as 'office supervisor' and the names of all other licensees doing business there. The branch license must be returned for cancellation or correction upon a change of office supervisor.

• ✓Branch license must state broker name and branch address and be conspicuously displayed
• ✓Branch must display the office supervisor's name and names of all licensees doing business there
• ✓Branch license must be returned for cancellation/correction upon change of office supervisor

Brokers of record/employing brokers may authorize one additional person to approve initial license applications; that person must hold a broker's license and be an officer/partner (or a broker-salesperson if the employing broker is a sole proprietor). A power of attorney must be filed at least 10 days before delegation. Separately, one individual (need not be licensed) may be designated to sign and surrender terminating licenses, with a form filed at least 10 days before delegation.

• ✓The designee approving applications must hold a broker's license and be an officer/partner (or broker-salesperson if employing broker is a sole proprietor)
• ✓A power of attorney must be filed at least 10 days prior to delegating the function
• ✓The person designated to surrender terminated licenses need not hold a real estate license
• ✓Only the broker and one other designated person may perform license transfer functions at any one time

A person whose license was revoked under section 54 cannot be a general partner, officer, director, or owner of a controlling interest in any licensed school, nor be employed, retained, or compensated by a licensed school, nor share or occupy office space in a licensed school location during the revocation period.

• ✓Revoked person cannot own a controlling interest in a licensed school
• ✓Revoked person cannot be employed or compensated in any capacity by a licensed school
• ✓Revoked person cannot occupy or share office space in a licensed school during revocation

Course providers must maintain records of licensees' successful completion of CE courses and transmit this data to NJREC or its designee as directed. NJREC is authorized to adopt rules and regulations pursuant to the Administrative Procedure Act (P.L.1968, c.410) necessary to carry out the purposes of the act.

• ✓CE providers must maintain completion records and transmit the data to NJREC or its designee as directed
• ✓NJREC adopts rules under the Administrative Procedure Act to effectuate the CE provisions

Broker, broker-salesperson, salesperson, and branch office licenses run for a two-year period concluding on June 30 of the odd-numbered year. All licenses issued during a biennial term run from the date of issuance to the end of the term. The definition of 'salesperson' includes a salesperson (referral). Amended effective January 20, 2026 to clarify that all licenses issued in a biennial term run to the end of that term.

• ✓Real estate licenses run two years, ending June 30 of the odd-numbered year
• ✓Licenses issued mid-term run from issuance date to the end of the current term
• ✓'Salesperson' includes a salesperson (referral)

Every resident real estate broker must establish and maintain a special account (or accounts) in an authorized New Jersey financial institution, separate from other business or personal accounts, for all monies of others received as broker, escrow agent, or temporary custodian. Reciprocal brokers may maintain it in NJ or in their resident-license state. Brokers must file an affidavit/certificate identifying the institutions and account numbers, and report any changes immediately.

• ✓Broker must maintain a special account for funds of others separate from business/personal accounts
• ✓Resident brokers must use an authorized NJ financial institution
• ✓Broker must file an affidavit/certificate identifying financial institutions and all account numbers at licensure/renewal
• ✓Any account change or new account must be immediately reported to the Commission

Under N.J.S.A. 45:15-17(o), commingling includes: mingling principals' money with the broker's own; failing to promptly maintain and deposit all monies of others in a separate special account; or failing to promptly segregate monies to be held for others. Maintaining clearly nominal amounts of the broker's own funds to provide account continuity or meet bank service charges is NOT commingling, nor is maintaining a legally-required fixed safety amount.

• ✓Commingling includes mingling principals' money with the broker's own
• ✓Commingling includes failure to promptly deposit or segregate monies of others in a special account
• ✓Maintaining nominal broker funds for account continuity or bank service charges is not commingling
• ✓Maintaining a law-required fixed safety amount of broker funds is not commingling

When commission funds are included in trust deposits, the commission portion must be promptly paid from the trust account (with annotations to business records), provided prior authorization existed. 'Promptly' means not more than five business days after receipt. For a good-faith/earnest money deposit, if the offer is withdrawn or rejected with no counteroffer within those five business days, the licensee may return the funds to the offeror; otherwise the licensee must deposit within five business days.

• ✓'Promptly' means not more than five business days following receipt of money/property of another
• ✓Commission portion of trust funds must be promptly paid out with proper record annotations and prior authorization
• ✓Earnest money may be returned if the offer is withdrawn/rejected without counteroffer within the five business days
• ✓In all other cases the licensee must deposit monies within five business days of receipt

Every person licensed as a broker of record or sole proprietor broker must be a signatory on the brokerage firm's escrow or trust account(s). Only individuals actively licensed by the Commission as a real estate broker-salesperson or salesperson may be additional signatories on those accounts.

• ✓Every broker of record or sole proprietor broker must be a signatory on the firm's trust/escrow account(s)
• ✓Only actively licensed broker-salespersons or salespersons may be additional signatories

Brokers may accept trust/escrow payments as: cash; a negotiable instrument payable to the broker's firm; a check debit card charge crediting the broker's trust/escrow account; or a wire transfer directly to the trust/escrow account. Credit card charges are permitted only for deposits and rent in short-term rentals (residential rental of not more than 125 consecutive days with a specific termination date). All such payments must be recorded per N.J.A.C. 11:5-5.4.

• ✓Acceptable trust payment forms: cash, negotiable instrument payable to the firm, check debit card charge, or wire transfer
• ✓Credit card charges are permitted only for short-term rental deposit/rent payments
• ✓A 'short term rental' is a residential rental of not more than 125 consecutive days with a specific termination date
• ✓All such payments must be recorded in the trust/escrow ledger per N.J.A.C. 11:5-5.4

Before accepting credit card payments on a short-term rental, a broker must inform the owner in writing of the charge-back potential and obtain the owner's signed written authorization (retained as a business record; made part of/addendum to the listing if secured by the listing broker). Payments must go to a distinct special trust/escrow account, and a separate business account must be maintained. In a charge-back dispute, the broker may not set off against monies from another transaction involving the same consumer.

• ✓Broker must inform owner in writing of charge-back potential and obtain signed written owner authorization
• ✓Owner's written authorization must be retained as a business record; if secured by listing broker, made part of the listing
• ✓Credit card short-term rental payments go to a distinct special trust/escrow account with a separate business account maintained
• ✓Broker may not set off a disputed charge-back against monies from another transaction with the same consumer
• ✓A written cancellation policy must be formulated, including the cancellation time period and disposition of monies

The full amount of a charged short-term rental payment must be credited to the special trust/escrow account; transaction fees to the credit card company may not be paid before that full amount is credited. Brokers must use one of two procedures: (1) designate a business account as the sole source for transaction fees and charge-backs; or (2) maintain a reserve of the broker's own funds in the special account (not commingling) sufficient for fees and estimated charge-backs, replenished at least monthly and within one business day after a charge-back on disbursed funds.

• ✓Full amount of the charged payment must be credited to the special trust/escrow account before any transaction fee is paid
• ✓Option 1: designate a business account as sole source for all credit card fees and charge-backs
• ✓Option 2: maintain a broker-funded reserve in the special account (not commingling) for fees and estimated charge-backs
• ✓Reserve transaction fees must be replenished at least monthly; charge-back debits replenished within one business day
• ✓Reserve amount may be increased anytime but reduced only annually, with all reserve credits/debits noted in records