When earnest money is held in a broker's trust account, how long does the broker have to pay the funds to the rightful party upon legal demand?

The broker is required to disburse earnest money to the rightful party within a specific timeframe upon receiving a legal demand for the funds. According to TREC regulations, when earnest money is held in a broker's trust account, the broker has 30 days to make this disbursement. The 30-day period is designed to provide a balance between allowing necessary time for verification of claims and ensuring that funds are not held indefinitely, which protects both the buyer and seller. This timeframe is crucial as it encourages prompt action and resolution of any disputes regarding the earnest money, promoting a smooth transaction process.