If a dispute arises prior to disbursement of funds, what should the broker do?

When a dispute arises regarding funds before they can be disbursed, the broker has a fiduciary duty to uphold the interests of all parties involved and must act according to established legal and ethical guidelines. Retaining the money in trust until a release is obtained ensures that neither party suffers undue loss while the dispute is being resolved. This approach protects the broker from potential liability and maintains trust with all parties involved, as it demonstrates a commitment to fair handling of the funds.

By keeping the funds in trust, the broker allows for the legal resolution of the dispute without prematurely favoring one party over the other. This stance is also consistent with the principles of ethical real estate practice, which prioritize responsible handling of clients' money and the avoidance of actions that could escalate conflict.