Trust Funds
What is 'commingling' of trust funds?
AInvesting client funds in real estate
BThe illegal mixing of a broker's personal or general business funds with client trust funds✓ Correct
CTransferring funds between trust accounts
DUsing trust funds to pay operating expenses
Explanation
Commingling is the illegal mixing of personal or business funds with trust funds belonging to clients. California law requires strict separation. Commingling is a violation of the Real Estate Law and grounds for license discipline, regardless of whether the broker intended to misappropriate the funds.
Related California Trust Funds Questions
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- Commingling in real estate refers to:
- The illegal use of client trust funds for the broker's personal benefit is called:
- Which California law specifically governs a real estate broker's obligations with respect to trust funds?
- A real estate broker's trust account must be maintained at:
- A 'shortage' in a broker's trust account — where the trust liability exceeds the bank balance — is most likely evidence of:
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:
- Interest earned on funds held in a broker's trust account generally belongs to:
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