Who must place deposits in a separate trust account?

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Deposits are placed in a separate trust account to protect the buyer’s money by keeping it separate from the broker’s own funds. Auto brokers act as the intermediary in a vehicle sale and are entrusted with the buyer’s earnest money or deposit. By placing those funds in a trust account, the broker can only use them for the intended transaction or return them if the deal doesn’t go through, and there is a clear, auditable record of where the money is. This separation helps prevent misappropriation and ensures regulatory compliance. The government does not handle private deposits, the buyer isn’t the one required to manage the money in this way, and while a dealership might handle funds differently, the requirement to use a separate trust account specifically applies to auto brokers to safeguard consumer funds.