What is the role of a broker in relation to escrow funds until a contract is signed?

The role of a broker in relation to escrow funds before a contract is signed is that the broker acts as a custodian of the buyer's funds. This means the broker is responsible for holding the funds securely until all parties involved in the transaction have fulfilled the necessary obligations specified in the agreement. The broker does not have ownership of these funds, nor do they have the right to use them for personal gain or collect interest on them. Instead, they must manage them in compliance with legal and ethical standards until the real estate transaction is finalized and the contract is executed. This custodial role is critical to ensure transparency and trust among buyers and sellers during the real estate process.