Alaska License Law
Under Alaska license law, which of the following actions constitutes commingling?
ADepositing earnest money into an escrow account within 3 business days
BMixing client trust funds with the broker's personal operating account✓ Correct
CMaintaining separate trust accounts for different clients
DUsing a federally insured bank for the trust account
Explanation
Commingling occurs when a licensee mixes client funds held in trust with their own personal or business operating funds. Alaska law strictly prohibits commingling, and violations can result in license revocation.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
State-Specific Concepts
Trust Account RulesLicense Law
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