North Carolina License Law
In North Carolina, the term 'commingling' refers to:
AMixing personal funds with client trust funds✓ Correct
BCo-listing a property with another broker
CAdvertising alongside a competing firm
DCombining buyer and seller agency duties
Explanation
Commingling is the illegal practice of mixing client trust funds (earnest money, security deposits, rents) with the broker's personal or operating funds.
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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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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.
Math Concepts
State-Specific Concepts
Trust Account Rules
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