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How Does MoveZen Ensure the Safety and Accuracy of Trust Account Funds?

We maintain detailed, audit-ready systems designed to protect owners, tenants, and MoveZen itself from any financial mismanagement. Trust account compliance is one of our highest priorities.

Audience: rental property owners who want reassurance that their rental income, security deposits, and reserve funds are handled safely, ethically, and in full compliance with North Carolina trust account law.

MoveZen manages client funds according to strict state regulations some of the toughest in the country. 

Here’s how we keep your money safe.

FAQs ❓

What is a trust account?
A legally regulated bank account used only for client funds (not MoveZen’s operating money).

Does MoveZen ever temporarily use one client’s funds to cover another’s expenses?
No that’s illegal. Every property must maintain a non-negative, separate ledger.

How often are trust accounts reviewed?
Every month internally, and subject to audits by the NC Real Estate Commission at any time.

Can trust account balances go negative?
Absolutely not. Zero deficit spending is allowed.

How do I know my money is safe?
Through reconciliations, reporting, audits, strict internal controls, and legal requirements.

What Makes Trust Accounts Different? ✔️

Unlike regular business bank accounts, trust accounts must follow strict legal rules:

✔ No commingling funds

Owner, tenant, and MoveZen funds must remain fully separated.

✔ No negative balances

A single deficit even briefly is a serious violation.

✔ Every dollar must be accounted for

All funds must match exact ledger entries.

✔ Regular reconciliations

Three separate reconciliations must match every month.

✔ Immediate correction procedures

Any irregularities must be fixed instantly and documented.

These rules exist to protect you.

How MoveZen Protects Trust Account Funds 🛡️

Below are the major safeguards and processes we use.

1. Strict Monthly Triple Reconciliation

Every month, MoveZen performs three reconciliations:

✔ Bank Reconciliation

The trust bank balance must match our internal accounting exactly.

✔ Tenant Ledger Reconciliation

All tenant balances must correctly reflect rent, deposits, fees, and payments.

✔ Trust Liability vs. Bank Balance Comparison

The total amount held for all owners and tenants must precisely match the bank account balance.

These three reconciliations must match down to the penny.

2. No Fund Disbursement Until Money Clears the Bank

To protect owners and stay compliant:

  • Rent must fully clear

  • Deposits must be verified

  • Returned payments must be checked

MoveZen never releases funds early or uses uncleared money. Doing so would violate trust accounting law and introduce financial risk.

3. Separate Ledgers for Each Owner & Tenant

Each property and each tenant has its own financial ledger.

This means:

  • No mixing of funds

  • Clear tracking of every charge and payment

  • Easy auditability

  • Complete transparency

Ledgers ensure owners can always see where every dollar has gone.

4. Digital Audit Trails & Reporting

MoveZen’s software automatically creates a timestamped record of:

  • Rent payments

  • Owner contributions

  • Vendor payments

  • Deposit transfers

  • Owner disbursements

  • Adjustments or corrections

This audit trail is essential for both legal compliance and detailed reporting.

5. Vendor Payments Only When Funds Exist

Vendors are only paid when:

✔ Funds are available
✔ Tenant rent has posted
✔ Owner contributions have been received

North Carolina does not allow spending money before it's actually there.
This prevents deficits, protects the trust account, and ensures accuracy.

6. Security Deposit Safeguards

Security deposits are:

  • Held in the trust account

  • Attributed to each tenant’s ledger

  • Verified during reconciliations

  • Returned or charged according to NC landlord-tenant law

  • Transferred to new owners during a sale

Deposit compliance is one of the most tightly regulated aspects of property management.

7. Internal Controls That Prevent Errors

MoveZen uses:

✔ Multi-person approval for key transactions

✔ Segregated duties

✔ Controlled access to trust account permissions

✔ Automatic accounting cross-checks

✔ Locked-down workflows for deposits and disbursements

These controls dramatically reduce human error.

8. Compliance With NC Real Estate Commission (NCREC) Rules

NCREC requires:

  • Detailed trust account records

  • Annual and surprise audits

  • Signed and verifiable reconciliations

  • Documentation retention

  • Immediate reporting of discrepancies

MoveZen follows all NCREC trust rules precisely — they are non-negotiable.

9. Transparent Owner Reporting

Owners receive:

  • Monthly Owner Statements

  • Detailed expenses

  • Vendor invoices

  • Year-end totals

  • 1099 forms

You always know how your money moves—no guessing.

10. Immediate Correction if a Discrepancy Occurs

On the rare occasion a reconciliation note appears:

  • Our accounting team identifies the issue

  • Corrects it immediately

  • Documents the fix

  • Reconciles again

  • Verifies trust compliance

  • Notifies leadership if necessary

Trust accounts must always be accurate, with no exceptions.

Why This Matters to Owners

These safeguards protect owners from:

✔ Financial loss
✔ Legal liability
✔ Compliance violations
✔ Tenant deposit disputes
✔ Insurance claim issues
✔ Missing or inaccurate records

Trust accounting is not just bookkeeping it’s legal protection for your investment.