DRE & LicensingIntermediateCalifornia Exam
A real estate licensee in California is found to have commingled client funds with their personal bank account. This violates:
AOnly federal banking regulations, per standard DRE licensing procedure
BCalifornia Business and Professions Code provisions on trust fund handlingCorrect
COnly the NAR Code of Ethics, as required for license renewal in California
DNo law — commingling is allowed if disclosed to the client, consistent with Business and Professions Code licensing rules
Why California Business and Professions Code provisions on trust fund handling Is Correct
Answer B: California Business and Professions Code provisions on trust fund handling
Commingling — mixing client trust funds with the broker's personal or business funds — is strictly prohibited under California Business and Professions Code Section 10176(e). Violations can result in license suspension or revocation.
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Trust Account Rules
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