After an offer is accepted, what should a broker do with the buyer's check?

The appropriate course of action after an offer is accepted is to deposit the buyer's check into a trust account. This is a crucial practice in real estate transactions as it ensures that the funds are safeguarded and managed appropriately. Trust accounts are specifically designed to hold funds on behalf of clients and are subject to strict regulations, which ensure the money is used solely for the purpose of the transaction.

Depositing the check into a trust account protects both the buyer and the seller. It provides assurance to the buyer that their earnest money is secure, while also keeping the funds separate from the broker's personal or business accounts, which is a key requirement in maintaining professional integrity and compliance with real estate laws. This practice helps to facilitate a smooth closing process, as funds will be readily available when the sale is finalized.

Holding the check until closing, depositing it into the seller's account, or returning it to the buyer are not aligned with best practices and legal requirements in California real estate transactions. These actions would not ensure the proper handling of the earnest money, potentially leading to legal complications for the broker and a loss of trust from clients.