Arizona License Law
Under Arizona law, a real estate licensee who engages in 'commingling' has:
AProperly mixed client funds with operating funds for efficiency
BIllegally mixed client trust funds with the broker's personal or operating funds✓ Correct
CCombined two separate client escrow accounts with written consent
DDeposited earnest money before the contract was accepted
Explanation
Commingling is the illegal act of mixing client trust funds with the broker's own funds. All trust funds must be kept in separate, dedicated trust accounts.
People Also Study
Related Arizona Questions
- Under Arizona law, a real estate broker who holds trust funds belonging to clients must maintain a separate trust account. Which of the following is PROHIBITED in a trust account?Arizona License Law
- A designated broker in Arizona decides to close their brokerage. What must they do with client trust funds?Arizona License Law
- A real estate licensee in Arizona who engages in 'commingling' has:Arizona License Law
- An Arizona real estate licensee who acts as a property manager must ensure that trust accounts used for security deposits are:Arizona License Law
- In Arizona, a real estate licensee who engages in discriminatory housing practices may be subject to:Fair Housing
- An Arizona licensee who refers a client to a home inspector they have a financial interest in without disclosure is violating the duty of:Agency
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.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Math Concepts
State-Specific Concepts
Trust Account Rules
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →