If a licensee receives trust funds for a transaction, what is their immediate obligation?

When a licensee receives trust funds for a transaction, their immediate obligation is to deliver those funds to the Broker-in-Charge (BIC) or Property Manager-in-Charge (PMIC) by the next business day. This requirement is in place to ensure that trust funds are handled responsibly and according to legal and ethical standards.

Trust funds, which can include earnest money deposits or rental payments, must be protected and placed in a trust account specifically designated for such funds. The prompt delivery of these funds helps maintain the integrity of the transaction and preserves the trust between the client and the licensee. It also ensures compliance with South Carolina real estate laws, which mandate that trust funds be deposited in a timely manner to safeguard the interests of all parties involved.

Maintaining this procedure also alleviates risks associated with misappropriating funds, which could lead to serious legal consequences for the licensee, including loss of license. Hence, the timely delivery of trust funds to the appropriate person is a foundational duty for those in property management and real estate transactions.