How often must a broker reconcile their trust account?

MONTHLY TRUST ACCOUNT RECONCILIATION is required by most states. The reconciliation compares: BANK STATEMENT balance (what the bank shows); LEDGER BALANCE (the running total of all individual client deposits and disbursements from the broker's internal records); INDIVIDUAL CLIENT BALANCES (what each client should have in trust based on transaction records). All three must agree. Discrepancies must be investigated and resolved promptly — a discrepancy means either a bank error, a recording error, or (most seriously) funds have been spent or miscounted. Regular reconciliation is the primary tool that prevents trust account fraud from going undetected. State real estate commission audits specifically examine trust account reconciliation records.