What term describes a deposit held by the seller's real estate broker, where commissions are deducted before forwarding the remainder?

The term that describes a deposit held by the seller's real estate broker, where commissions are deducted before forwarding the remainder, is known as an "excess deposit." This term indicates that the deposit exceeds the necessary fees, such as the broker's commission, and implies that any surplus amount is managed before being passed on to the appropriate party. In real estate transactions, the handling of deposits is critical, as it can relate to how the funds are distributed and what obligations are met prior to the finalization of the sale. Understanding this terminology helps clarify the processes involved in real estate transactions and the financial relationships between sellers, brokers, and buyers.

Other terms listed, like contingent payments or third party deposits, do not accurately reference the situation where a broker deducts fees from a seller's deposit. These terms have different connotations and usages within the context of real estate and finance.