What must a broker do upon receiving an earnest money deposit from buyers?

When a broker receives an earnest money deposit from buyers, it is essential that they immediately provide the buyers with a copy of the agreement as a receipt. This practice serves as proof of the transaction, confirming that the buyers have fulfilled their obligation to make a deposit towards the purchase of the property. It creates a clear and documented record that promotes transparency and trust between the broker and the buyers.

The receipt also helps to protect the interests of the buyers by ensuring they have evidence of their deposit, which can be crucial in any potential disputes or negotiations that may arise later in the transaction. Providing this documentation aligns with professional standards in real estate and reinforces the broker’s duty to act in the best interest of their clients.

In some circumstances, failure to provide this receipt could lead to misunderstandings regarding the amount of the deposit or the terms of the transaction, which can adversely affect the buyer's position in the deal. Thus, this practice is both a regulatory requirement and a best practice in maintaining proper brokerage operations.