Arizona License LawIntermediateArizona Exam
In Arizona, 'commingling' refers to the illegal practice of:
AMixing business and personal real estate transactions
BMixing client trust funds with the broker's personal or operating fundsCorrect
CMixing commercial and residential clients in the same brokerage
DSharing client information with competing brokers
Why Mixing client trust funds with the broker's personal or operating funds Is Correct
Answer B: Mixing client trust funds with the broker's personal or operating funds
Commingling is the unlawful mixing of client trust funds (earnest money, security deposits, rents collected) with the broker's own funds. Trust funds must be maintained in separate, dedicated trust accounts.
Key Arizona License Law Terms in This Question
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
State-Specific Concepts
Trust Account Rules
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