Pennsylvania License Law
A Pennsylvania real estate licensee who engages in 'commingling' violates RELRA by:
AMarketing the same property on multiple platforms
BMixing client trust funds with the broker's personal or business funds✓ Correct
CRepresenting both a buyer and seller in different transactions simultaneously
DSharing commission information with competing brokers
Explanation
Commingling is the prohibited practice of mixing client funds (earnest money, rents, security deposits) held in trust with the broker's personal or operating funds. RELRA strictly prohibits commingling and requires separate escrow accounts for client 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.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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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