Final answer:
An agent should deposit a buyer's check into an escrow account where it is protected and will be disbursed upon completion of the transaction. This account also helps buyers by managing payments for home insurance and property taxes.
Step-by-step explanation:
When a buyer asks an agent to hold a deposit check for 30 days, it is important to understand the role of escrow in real estate transactions. Escrow refers to a financial arrangement where a neutral third party holds and regulates the payment of the funds required for two parties involved in a given transaction. In the context of real estate, an escrow service is used to ensure that the buyer's deposit is safely held and will be paid to the seller upon the successful completion of the sale. In this case, the agent should promptly deposit the check into an escrow account. The escrow agent will hold the money and disburse it at the right time, ensuring both the buyer's and the seller's interests are protected. Moreover, the escrow account can also be used to pay for home insurance and property taxes as part of the buyer's normal monthly payment, simplifying the process.