Upon the revocation, suspension, or lapse of a broker's license, what is required of the broker regarding sales escrow checking accounts?

When a broker's license is revoked, suspended, or lapses, it is essential to maintain the sales escrow checking accounts until all deposits have been disbursed appropriately. This requirement ensures that any funds held in these accounts, which are often client deposits for real estate transactions, are not mishandled during the transition period following the loss of the broker's license.

Maintaining the account facilitates the proper and legal disbursement of funds, ensuring that clients receive their deposits back or that they are managed according to the contractual obligations agreed upon prior to the revocation, suspension, or lapse of the license. This approach protects both the clients’ interests and the integrity of the brokerage process, reflecting adherence to ethical and professional standards in the industry.

Other actions, such as closing accounts immediately or stopping new deposits, could create complications or legal issues regarding unreturned deposits, which could harm clients or create liability for the broker. Transferring accounts to another broker is not standard practice and may also create further complications, especially if there are unresolved transactions or obligations tied to the accounts.