Trust Funds
Commingling in real estate refers to:
AMixing business with personal relationships
BIllegally mixing client trust funds with a broker's personal or operating funds✓ Correct
CCombining two properties into one listing
DSharing commission with an unlicensed person
Explanation
Commingling is the illegal practice of mixing client trust funds with a broker's personal or business funds. It is a serious violation that can result in license revocation.
Related California Trust Funds Questions
- A broker receives a $5,000 earnest money deposit on a Friday at 5 PM. The three-business-day deposit deadline would be:
- What is a 'neutral escrow' and when is it used for trust funds?
- What is 'conversion' of trust funds?
- Which California government agency has primary jurisdiction over the investigation of trust fund violations by real estate licensees?
- California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?
- Interest earned on funds held in a broker's trust account generally belongs to:
- A DRE audit of a broker's trust account reveals that the balance of individual client ledgers is less than the total bank balance. This condition is called:
- A broker receives a check as earnest money. Under California law, the broker must deposit it into the trust account within:
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