If a broker accepts an earnest money check made out to the broker, deposits it in their own checking account, and immediately transfers the funds to a clients' trust account, the broker is in violation of the fiduciary duty of:

The scenario presented highlights a critical aspect of a broker's fiduciary duties, particularly concerning the responsibility of accounting. When a broker accepts an earnest money check made out to them, they have an obligation to manage and account for those funds appropriately.

In this context, the fiduciary duty of accounting requires the broker to maintain accurate records and ensure that client funds are handled properly. By initially depositing the check into their own checking account, even if they intend to transfer it to the client's trust account immediately afterward, the broker violates this duty. Client funds should be handled with the highest level of care and integrity, which includes direct deposit into a trust account designated for client funds, rather than through a personal or operating account.

In summary, the broker's actions depict a failure to adequately account for the earnest money, as it creates opportunities for misuse or mismanagement of funds, potentially leading to issues of trust and integrity with the client. Thus, the violation pertains specifically to the duty of accounting in the context of client funds.