A CRB account is a deposit account that tracks money held in trust for someone else
CRB stands for Client Trust Account or Custodial Receivable Balance, depending on the context and the financial institution. In practice, a CRB account is a bank account where money belongs to a client or customer, but a third party—usually a lawyer, real estate agent, title company, or property manager—holds and manages it on their behalf. The bank knows the money is not the property of the account holder; it is held in trust.
The most common use is in real estate transactions. When you buy a house, your earnest money deposit goes into a CRB account held by the title company or escrow agent. When a landlord collects a security deposit, it often sits in a CRB account held by the property management company. The account exists to keep client money separate from the business's own operating funds, and to make clear in the bank's records that the money is not available to creditors of the business if it fails.
CRB accounts are regulated differently than personal or business checking accounts. Banks must follow specific rules about how the money can be withdrawn, who can sign checks, and how the account must be reported. These rules exist to protect the client's money and prevent the business from using it for their own purposes.
Key Takeaways
- A CRB account holds money that belongs to a client but is managed by a lawyer, real estate agent, title company, or property manager.
- The account keeps client funds separate from the business's own money, which protects the client if the business faces financial trouble.
- Common uses include earnest money deposits in home purchases, security deposits from renters, and settlement funds in legal cases.
- Banks treat CRB accounts differently than regular business accounts and have strict rules about withdrawals and account management.
- You should receive documentation showing how much of your money is in the CRB account and when you can expect to receive it.
When your money ends up in a CRB account
You encounter CRB accounts most often in real estate. When you make an offer on a house, the seller usually asks for earnest money—a deposit that shows you are serious about the purchase. That money goes into a CRB account held by the title company, escrow agent, or real estate brokerage. It stays there until closing, when it is applied to your down payment or returned to you if the deal falls through.
Renters also deal with CRB accounts regularly. When you pay a security deposit to a landlord or property manager, many states require that money to be held in a separate account—often a CRB account—rather than mixed with the landlord's operating funds. This protects your deposit if the landlord's business fails or if there is a dispute about how much you are owed back.
In legal cases, settlement money or funds held pending a court decision often sit in a CRB account managed by the attorney or the court. The same applies to money held by a title company during a property dispute or a delayed closing.
How a CRB account protects your money
The main protection a CRB account offers is segregation. Because the money is held in a separate account and clearly marked as client funds, it cannot be seized by the business's creditors if the business is sued or goes bankrupt. If a title company fails, your earnest money in a CRB account is not at risk the way it would be if it were sitting in the company's regular operating account.
Banks are also required to reconcile CRB accounts regularly—usually monthly—to make sure the balance matches the total of all individual client balances. This audit trail creates a record of where the money is and who it belongs to. If there is ever a dispute, the bank's records can show exactly what happened.
Different states have different rules about CRB accounts. Some states require that the account be held in the name of the business "as trustee for" the client. Others require specific language in the account agreement. Some states mandate that the account earn no interest, or that any interest earned goes to a state bar association fund. These rules vary, so if you are concerned about a specific CRB account, ask the business holding it what state rules apply.
What happens when you need the money back
The timeline for getting money out of a CRB account depends on why it is there. If you are buying a house and the deal closes, the title company releases your earnest money at closing—usually the same day. If the deal falls through, the release depends on whether both the buyer and seller agree, or whether there is a dispute. If both agree, the money comes back within a few business days. If they disagree, it may stay in the account until a court decides or both parties sign a release.
For security deposits, state law sets the timeline. Most states require landlords to return deposits within 30 to 45 days of move-out, with deductions itemized in writing. If the landlord owes you money, they must send it from the CRB account. If they claim deductions, those funds stay in the account until the dispute is resolved or the deadline passes.
In legal settlements, the attorney or court releases the money once all conditions are met—usually when the settlement agreement is signed and any appeal period has passed. Ask whoever is holding the money in the CRB account for a specific date when you can expect it, and ask in writing so you have a record.
The difference between a CRB account and your personal bank account
A CRB account is not your account. You do not have a debit card, you cannot write checks from it, and you cannot access it online. The business holding the money controls the account. You have a claim on the money, but not direct control. This is by design—it prevents the business from accidentally or deliberately using your money for their own purposes.
Your personal bank account is yours to control. You can withdraw money whenever you want, spend it however you want, and use it for any purpose. A CRB account is locked down. The business can only withdraw money according to the terms of the agreement you signed or the law that governs the account.
CRB accounts also do not earn interest in most cases, or the interest goes to the state rather than to you. Your personal savings account may earn interest. This is another reason to ask when your money will be released from a CRB account—the sooner it moves to your own account, the sooner you can earn interest on it or use it as you see fit.
Red flags and what to do if something seems wrong
If you have money in a CRB account, you should receive written confirmation of the amount, the date it was deposited, and the expected date of release. If you do not receive this documentation, ask for it in writing. Keep copies of everything.
If the business holding the money goes out of business or you cannot reach them, contact the bank directly. Ask to speak with someone in the trust accounting department. Provide your name, the name of the business, and the approximate amount. The bank can tell you whether the account still exists and what the balance is. If the money is still there, the bank can help you figure out how to recover it.
If you believe the business has misused the money—for example, if they spent your security deposit on their own expenses—you can file a complaint with your state's attorney general or the state bar association if an attorney is involved. You can also sue the business in small claims court or hire an attorney to pursue the claim. Document everything: the original receipt, the date you paid, any written agreements, and any communication about when you would get the money back.
Frequently Asked Questions
Can a business use money in a CRB account for their own expenses?
No. That is the entire point of a CRB account. If a business uses client money held in trust for their own purposes, it is theft or embezzlement. If you discover this has happened, report it to your state's attorney general, the state bar association if an attorney is involved, or local law enforcement.
How long can money stay in a CRB account?
It depends on the reason it is there. Earnest money in a real estate deal usually stays for 30 to 60 days until closing. Security deposits must be returned within the timeframe set by state law, usually 30 to 45 days after move-out. Settlement money may stay longer if there are conditions that must be met first. Ask the business holding the money for a specific release date.
What if I never get my money back from a CRB account?
If the deadline has passed and you have not received the money, send a written demand to the business holding it. If they do not respond within 10 business days, contact the bank and ask them to investigate. You can also file a complaint with your state's attorney general or pursue a lawsuit in small claims court or civil court, depending on the amount.
Does a CRB account earn interest?
Most CRB accounts do not earn interest, or any interest earned goes to the state bar association or a similar fund, not to you. Check the agreement you signed or ask the business holding the money. If interest is being earned and kept by the business, that may be a violation of state law.
Is my money in a CRB account insured by the FDIC?
Yes, CRB accounts held at FDIC-insured banks are covered by FDIC insurance, just like regular deposit accounts. The coverage limit is usually $250,000 per depositor per bank. If the bank fails, the FDIC protects your money up to that limit.