What responsibility does the broker have regarding earnest money?

The broker's responsibility regarding earnest money primarily involves holding and managing it according to legal standards. This means that the broker must ensure that the earnest money is kept in a secure manner, typically in a trust account, and that it is handled according to state laws and regulations governing real estate transactions. This includes properly documenting its receipt and ensuring that it is used in accordance with the terms of the purchase agreement.

By adhering to these legal standards, the broker helps protect both the buyer's and seller's interests and maintains trust in the transaction process. This careful management of earnest money is crucial, as it serves as a sign of the buyer's good faith in following through with the purchase, and any mishandling could lead to disputes or legal issues.

The other options, while they reflect various aspects of earnest money handling, do not encapsulate the broker's duty to manage it with the level of legal compliance required for a successful transaction.