Trust Funds
Which of the following is considered 'commingling' of trust funds?
AKeeping trust funds in a separate account from the broker's personal funds
BMixing client funds with the broker's own personal or business funds✓ Correct
CDepositing funds from multiple clients into the same trust account
DMaintaining a trust account at two different banks
Explanation
Commingling is the illegal mixing of a client's trust funds with the broker's own money. Funds from multiple clients may share the same trust account, but they must never be combined with the broker's personal or business funds.
Related California Trust Funds Questions
- The commingling of trust funds occurs when a broker:
- A broker who maintains a property management business must:
- A property manager collects security deposits from tenants. Under California law, security deposits:
- Which of the following records is a broker required to maintain for the trust fund account?
- Which of the following is considered a trust fund under California law?
- Which statement about a broker's trust account is TRUE?
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- When may a broker withdraw funds from their trust account?
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