What is a "Trust account" also known as in auction transactions?

In the context of auction transactions, a "Trust account" is indeed commonly referred to as a Custodial Account for Sellers Proceeds. This type of account is established to hold funds that are intended for distribution to sellers after the completion of an auction. It serves the purpose of safeguarding sellers' proceeds generated from the sale of their items.

Trust accounts are critically important in auctions as they help ensure transparency and protect the interests of all parties involved, particularly the sellers who entrust their items to an auctioneer. By holding the proceeds in a custodial or trust account, auctioneers can manage the funds responsibly, ensuring that sellers receive their rightful earnings promptly and securely after the auction concludes.

While other terms like "Escrow Account" could be similar in function, they are generally associated with different contexts and agreements. An escrow account often signifies a third-party holding arrangement involving not just seller proceeds, but can also include obligations relating to buyers, inspections, or other conditions as part of a larger transaction framework. In this case, identifying the specific role of the trust/custodial account in relation to sellers' proceeds accurately captures its purpose and usage in auction transactions.