Connecticut License Law
Which of the following best describes 'commingling' of funds in Connecticut real estate?
AMixing personal and trust account funds✓ Correct
BSplitting a commission between two brokers
CSharing office space with another brokerage
DPooling marketing expenses with other agents
Explanation
Commingling means mixing client funds (earnest money, security deposits) with the broker's personal or operating funds. This is strictly prohibited in Connecticut and can result in license suspension or revocation.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Math Concepts
State-Specific Concepts
Trust Account Rules
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