Where must any money received by the broker be placed?

The correct answer is that any money received by the broker must be placed in his/her escrow account. An escrow account is specifically designed to hold funds that belong to clients until certain conditions are met, such as the completion of a transaction. This ensures that the money is safeguarded and handled properly, in compliance with legal and regulatory requirements.

Escrow accounts help to protect both the buyer's and seller's interests, as they ensure that funds are not misappropriated and are only released when the agreed-upon obligations are fulfilled. This mechanism fosters trust and accountability in real estate transactions.

Other forms of accounts, such as personal or trust accounts, do not provide the same level of security or assurance regarding the handling of client funds. A personal account, for example, commingles the broker’s personal finances with client funds, which is prohibited. An interest-bearing account may not necessarily secure the funds in the same regulated way as an escrow account, and while a trust account is an appropriate means to handle client funds, the specific terminology in this context points more directly toward the escrow account as the mandated holding arrangement for real estate transactions.