In most transactions, which broker holds the trust funds?

In most real estate transactions, the listing broker typically holds the trust funds. This is because the listing broker has a fiduciary responsibility to safeguard the earnest money deposits made by the buyer, which signifies their intent to purchase the property. The trust funds may include earnest money, security deposits, and other funds associated with the transaction.

The listing broker is usually the one directly involved in the marketing and sale of the property, and they are positioned to manage the proceeds and deposits related to that property. By holding the trust funds, the listing broker ensures that they are securely managed until they are disbursed according to the contract terms, ensuring compliance with state regulations and industry standards regarding the handling of such funds.