What does the duty to 'account for funds' imply in real estate?

The duty to 'account for funds' in real estate involves providing accurate financial tracking and reporting. This responsibility ensures that all funds received, such as deposits or earnest money, are properly recorded, managed, and reported to clients. It reflects a fiduciary duty where the real estate professional must act in the best interest of their clients, offering transparency and accountability in all financial dealings.

This duty safeguards the clients' interests and prevents potential misuse of funds. It requires maintaining clear and detailed records that demonstrate how funds are collected and disbursed throughout the transaction process. Adhering to this duty not only complies with legal and ethical standards but also builds trust between the real estate professional and the clients.