Minnesota License Law

Which of the following constitutes commingling under Minnesota license law?

AHolding earnest money in a dedicated trust account
BMixing client funds with the broker's personal operating funds✓ Correct
CMaintaining separate ledgers for each client
DDepositing rent payments in the trust account

Explanation

Commingling—mixing client funds with the broker's personal or business operating funds—is a serious violation of Minnesota license law. Brokers must maintain separate trust accounts for client funds and keep meticulous records. Commingling can result in license suspension or revocation.

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