What must a broker do with deposit funds when investors wish to hold them for future purchases?

The correct action that a broker must take with deposit funds when investors wish to hold them for future purchases is to deposit them in the broker’s escrow account. This ensures that the funds are kept secure and are clearly earmarked for the intended transaction. Escrow accounts are specifically designed to hold clients' funds, ensuring compliance with regulations and protecting the interests of all parties involved in a transaction.

Holding funds in an escrow account provides transparency and accountability regarding the handling of the funds. This is essential in maintaining trust with the clients and ensuring that the funds are available for their specified purpose when needed in future transactions.

Considering alternative options, returning the funds to the purchasers is not appropriate if the intent is for the investors to hold the funds for future purchases. Holding the funds in the broker's personal account is not compliant with handling client money, as personal accounts do not provide the necessary protections or clarity regarding the ownership of those funds. Using a rental trust account is specific to rental transactions and therefore is not suitable for general deposit funds meant for future purchases.