Rhode Island License Law
What is 'earnest money commingling' and why is it a serious violation in Rhode Island?
ADepositing earnest money late; it is a minor administrative infraction
BMixing client earnest money with the broker's personal or business funds, violating fiduciary duty and license law✓ Correct
CDepositing earnest money in a non-interest bearing account
DFailing to disclose the amount of earnest money in the listing
Explanation
Commingling means mixing client funds (such as earnest money) with the broker's own funds. It is a serious violation of Rhode Island license law and fiduciary duty, and can result in license revocation and civil liability.
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