What is required of a broker who collects an advance fee over $25?

The requirement for a broker who collects an advance fee over $25 is to provide a full accounting of the fee within ninety days. This regulation ensures transparency and accountability in the financial dealings between brokers and their clients. By requiring brokers to furnish a detailed accounting, it guarantees that clients can understand how their money is being utilized, what services were rendered, and whether those services were satisfactory.

This measure is crucial in protecting consumers and fostering trust in real estate transactions, particularly since advance fees can be a significant financial commitment for clients. A full accounting serves to inform clients about the specific use of their funds, reinforcing professional standards within the brokerage industry. This requirement upholds ethical practices and helps maintain compliance with state regulations surrounding the handling of client funds.