Tennessee License Law
Under Tennessee license law, 'commingling' means:
AAdvertising multiple properties under one MLS listing
BMixing client funds with the broker's personal or operating funds✓ Correct
CCombining buyer and seller agency in one agreement
DSharing commission between brokers from different firms
Explanation
Commingling is the illegal mixing of client trust funds (earnest money, security deposits) with the broker's own personal or operating accounts. All trust funds must be kept in a separate escrow/trust account.
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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.
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.
Math Concepts
State-Specific Concepts
Trust Account RulesLicense Law
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