What action must a broker take if both the seller and buyer claim the earnest money?

In the situation where both the seller and buyer claim the earnest money, the broker is required to notify the Florida Real Estate Commission (FREC) within a specified timeframe. This action is important because it ensures that the dispute is properly documented and that the regulatory body is informed of the situation.

The 15-day notification requirement is part of the protocols established to protect all parties involved in a real estate transaction. Failing to notify FREC within this period could lead to potential legal issues or penalties for the broker. By entering this process, the broker helps to facilitate a resolution, ensuring that they are acting in accordance with state regulations and maintaining their professional responsibilities.

Other options, such as arbitration or hiring an attorney, may come into play after FREC has been notified, but the immediate action required is to inform the commission of the issue regarding the earnest money. This step is crucial in maintaining transparency and accountability in real estate transactions.