New Jersey License Law
In New Jersey, 'commingling' of client funds with a broker's operating funds is:
APermitted if the amounts are small
BStrictly prohibited and can result in license suspension or revocation✓ Correct
CAllowed for 30 days before separation is required
DPermitted with client's verbal consent
Explanation
Commingling—mixing client escrow funds with the broker's personal or operating funds—is strictly prohibited in NJ. Brokers must maintain separate, properly labeled escrow accounts. Commingling is a serious violation that can result in license suspension, revocation, and criminal charges.
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