Texas License Law
Which of the following actions by a Texas licensee constitutes 'commingling' of funds?
ADepositing earnest money in a dedicated trust account
BDepositing earnest money in the broker's personal checking account✓ Correct
CKeeping separate ledgers for each client
DUsing a separate account for each property managed
Explanation
Commingling occurs when a licensee deposits client funds (earnest money, security deposits, rent) into their personal or business operating account instead of a designated trust account. This is a serious TREC violation.
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