What happens to a broker's trust accounts when their license becomes inactive?

When a broker's license becomes inactive, the trust accounts must be maintained by the broker until they are properly dispersed. This is important as trust accounts typically hold client funds, including earnest money and security deposits. These funds must be managed responsibly and in compliance with legal and ethical obligations, regardless of the broker's active status.

The requirement to maintain the trust accounts ensures that clients' money is safeguarded and that no unauthorized or improper use of the funds occurs during the period in which the broker's license is inactive. Proper disbursement of funds can only occur after the necessary legal and procedural requirements are met, ensuring accountability and protection for all parties involved.

This approach underscores the importance of responsible oversight in handling trust accounts, emphasizing that the broker retains a duty to manage these accounts appropriately even when not actively licensed.