What are trust accounts used for in Indiana real estate transactions?

Trust accounts in Indiana real estate transactions are specifically designed to hold client funds separately from a broker's personal and operating funds. This separation is crucial for managing client funds ethically and legally, ensuring that these funds are protected and used only for their intended purpose—such as earnest money, security deposits, or other funds belonging to clients during the course of a real estate transaction.

By keeping client funds in a trust account, brokers demonstrate accountability and compliance with regulations that demand proper handling of client money. This practice helps to maintain trust between the broker and clients, as it ensures that the funds are not misappropriated or used for the broker's personal expenses.

In contrast, the other options do not align with the primary purpose of trust accounts. Advertising expenses fall under operating costs and should be handled through general business accounts. Similarly, property deeds are not typically stored in trust accounts, and managing broker commissions also does not belong to the function of trust accounts, which focus primarily on safeguarding client funds.