When must a broker return an uncashed deposit check?

A broker must return an uncashed deposit check when the transaction is canceled to ensure compliance with California Real Estate laws. This requirement is rooted in the responsibility of brokers to act in the best interests of their clients and maintain transparency in financial transactions. When a transaction is canceled, the obligation to hold the deposit typically ceases, and the broker must return any funds that were not cashed back to the buyer. This action safeguards the buyer's funds and helps uphold trust in real estate practices.

The other options may reflect considerations in different contexts but do not align with the legal obligations concerning deposit checks. For example, the option mentioning a time frame of six months could mislead individuals regarding the urgency with which uncashed checks should be handled. Similarly, while a request from the buyer may prompt action, it is not a definitive trigger for the return of the deposit, as the cancellation of the transaction itself establishes that obligation. Lastly, suggesting that a check is returned whenever it has "expired" does not reflect the proper classification of a deposit within real estate transactions, as deposits are typically returned based on the status of the transaction rather than the age of the check.