All funds received by a broker on behalf of their client must be deposited in an escrow or trust account within?

The requirement that all funds received by a broker on behalf of their client must be deposited in an escrow or trust account within one business day after receipt is based on the essential principles of fiduciary duty and client protection in real estate transactions. This timeframe ensures that client funds are safeguarded quickly and minimizes the risk of misappropriation or misuse by the broker. By requiring a swift deposit into a separate, regulated account, brokers demonstrate accountability and transparency in handling client funds, which fosters trust in the real estate industry.

This approach aligns with ethical standards and regulatory practices aimed at protecting all parties involved in a transaction. Depositing funds immediately helps ensure that the transaction can proceed without unnecessary delays, providing both the buyer and seller with the confidence that their financial interests are being handled responsibly.