What action is expected of a broker upon receiving earnest money in a transaction?

When a broker receives earnest money in a real estate transaction, they are expected to deposit it into a special escrow account in a timely manner. This practice serves several important functions. First, it helps ensure that the earnest money is held securely and is not misappropriated. Escrow accounts are specifically designed to hold funds safely and separate from the broker's personal finances.

Additionally, depositing the earnest money promptly demonstrates professionalism and maintains trust between all parties involved in the transaction. It assures the buyer that their funds are protected and signifies the seriousness of their offer to the seller. The timely handling of earnest money is a critical aspect of complying with real estate regulations and upholding ethical standards in the practice.