What would not be classified as trust funds?

In the context of real estate transactions, trust funds refer to money held by a broker or agent on behalf of clients for a specific purpose. These funds are held in trust for the client until the completion of a transaction or until they are otherwise released according to the terms of the agreement.

Commissions received at closing do not qualify as trust funds because they are payment earned by the broker for services rendered once the transaction has successfully closed. Unlike client retained funds, earnest money deposits, and security deposits—which are held in trust until certain conditions are met or until a transaction is finalized—commissions are not held for the benefit of the client but are rather the broker's earnings at the end of the process.

Client retained funds, earnest money deposits, and security deposits are all amounts that are held in trust, reflecting obligations to clients or specific contract terms that dictate how and when those funds should be utilized. Therefore, the classification of commissions as earned income rather than held in trust distinguishes it from the other options presented, making it the correct choice in this scenario.