Delaware License Law
What is 'commingling' of funds, and why is it prohibited under Delaware license law?
AThe practice of depositing client funds into a business account with the broker's personal funds
BMixing client escrow funds with the brokerage's operating funds, which is prohibited to protect client money and prevent conversion✓ Correct
CThe practice of combining multiple clients' funds into one escrow account
DDepositing earnest money into an interest-bearing account without client consent
Explanation
Commingling is mixing client funds (earnest money, security deposits) with the broker's own operating or personal funds. It is strictly prohibited under Delaware license law. Brokers must maintain separate escrow accounts for client funds. Commingling can result in license revocation and criminal charges.
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