Agency
What is a Nevada licensee's obligation to keep personal funds out of the trust account?
AAgents may keep a working balance of personal funds in the trust account
BNevada licensees must keep personal and business funds completely separate from client trust funds — commingling is a serious license law violation✓ Correct
CA small float is permitted to cover bank fees
DTrust accounts are not required to be separate from personal accounts
Explanation
NRS 645 and NREC regulations strictly prohibit commingling — mixing client trust funds with the licensee's personal or business operating funds. Only client deposits, earnest money, and security deposits should be in the trust account.
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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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Math Concepts
State-Specific Concepts
Trust Account RulesLicense Law
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