Missouri License Law

In Missouri, a licensee who uses their client's earnest money for personal expenses and then replaces it before closing has committed:

ANo violation if it was returned
BCommingling and misappropriation of trust funds, which is a serious MREC violation regardless of repayment✓ Correct
COnly a minor bookkeeping error
DA violation only if over $1,000

Explanation

Misappropriating client trust funds—even temporarily—violates Missouri's trust account requirements. Replacing the funds before discovery does not eliminate the violation.

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