Maine License Law
Maine license law defines 'commingling' of funds as:
APaying two agents from the same closing
BMixing client funds with the broker's personal or business funds✓ Correct
CSplitting a commission between two brokers
DAccepting multiple earnest money deposits
Explanation
Commingling is the illegal mixing of client funds (earnest money, security deposits) with the broker's personal or business operating funds. Maine requires all client funds to be held in separate trust accounts.
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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.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Math Concepts
State-Specific Concepts
Trust Account RulesEscrow DisputesLicense Law
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