An uncashed deposit check may be kept by a broker for how long?

The correct answer is based on the principle that a broker must act in accordance with the terms set forth by their principal regarding the handling of deposit checks. It is essential for brokers to maintain transparency and adhere to the agreements made with their clients. The time period for which a broker can keep an uncashed deposit check is determined by the authorization given by the principal, which typically would be detailed in the listing agreement or the purchase agreement.

This ensures that the broker is not holding onto the funds beyond the period agreed upon, and it protects the interests of both the buyer and the seller. It reinforces the trust and professional conduct that is expected in real estate transactions. Maintaining compliance with this guideline helps prevent disputes regarding the handling of funds and aligns with regulatory practices.

Other potential answers do not hold as they lack specific limitations or requirements set forth by the principal. For instance, an indefinite preservation of the deposit check could lead to misunderstandings or financial mismanagement, while a fixed duration like six months could exceed or not meet the authorization given, and the brokerage must always adhere to the specific guidelines established during the transaction.