Minnesota License Law
A Minnesota licensee is accused of commingling client funds. This means:
ASharing commission with unlicensed persons
BMixing client trust funds with the broker's personal or business funds✓ Correct
CAccepting payment in cash rather than check
DCharging undisclosed fees to clients
Explanation
Commingling is the illegal mixing of client funds (earnest money, security deposits) with the broker's own personal or business funds. Minnesota law strictly prohibits commingling.
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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 Rules
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