DRE & LicensingIntermediateCalifornia Exam
What is 'commingling' of funds in real estate?
APooling client funds together in a single trust account
BMixing client trust funds with the broker's personal or operating fundsCorrect
CTransferring funds between two trust accounts
DUsing one bank for all real estate transactions
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 occurs when a broker mixes client trust funds with their own personal or business operating funds. This is strictly prohibited under California law and can result in license revocation.
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Key Terms to Know
State-Specific Concepts
Trust Account Rules
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