Oregon License Law

Under ORS Chapter 696, which of the following actions constitutes 'commingling' by a real estate licensee?

ADepositing client funds in a separate trust account
BMixing client trust funds with the broker's personal or operating funds✓ Correct
CHolding earnest money in an interest-bearing account
DDistributing commission proceeds to affiliated licensees

Explanation

Commingling is the illegal mixing of client trust funds (such as earnest money deposits) with a licensee's personal or business operating funds. Oregon law requires that client funds be held in separate, dedicated trust accounts. Commingling is a serious violation that can result in license revocation, fines, and criminal charges.

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