What authority is necessary for withdrawing funds from a trust account?

The necessity of written authority from the person entitled to the funds is fundamental in property management and real estate transactions. This requirement ensures that the withdrawal of funds from a trust account is legitimate and backed by recognized legal consent, which protects both the property owner and the managing entity.

Trust accounts are designed to safeguard funds that belong to clients for transactions such as security deposits, rents, and other property-related financial activities. To maintain accountability and prevent any unauthorized access to these funds, specific requirements for withdrawal must be adhered to. Written authority provides a clear, documented agreement that can be referenced in case of any disputes or questions about the transaction or the handling of funds. This documentation serves as a protective measure for the property representative and the property owner, ensuring transparency and legal compliance in financial dealings.

Verbal agreements and informal consent do not offer the same level of protection and clarity. Approvals from supervisors or consent from other agents do not hold the authority to allow fund withdrawals unless the actual property owner or the entity entitled to those funds has provided explicit written permission.