If a real estate broker has a trust account, what must they do with the clients' funds held in it?

A real estate broker with a trust account is required to keep the clients' funds separate from their personal funds and maintain accurate records. This practice ensures transparency and accountability in managing client money, which is essential for upholding ethical standards in real estate transactions.

Maintaining a distinct separation between client funds and personal or business funds is a legal requirement that protects clients and ensures that their money is safeguarded. Accurate record-keeping complements this separation by providing a clear audit trail of all transactions involving the trust account. This is particularly important during audits or inquiries, as it demonstrates that the broker is compliant with state regulations governing real estate transactions and fiduciary responsibility.

The other options do not align with the legal obligations of brokers regarding trust accounts. Investing client funds for profit would not only carry risks for the clients but could also violate fiduciary duties. Using the funds for office expenses would be a misappropriation of client money, which is illegal, and disbursing funds immediately to a client ignores the contractual and procedural obligations that might dictate when and how funds can be released. Thus, maintaining separation and accurate records ensures that the broker honors their responsibilities while protecting clients' interests.