Property Management
Under Texas law, a property manager who co-mingles client funds with their own personal funds is:
APermitted if they track the amounts carefully
BIn violation of TREC rules and may face license suspension or revocation✓ Correct
COnly liable if the client suffers a financial loss
DRequired to disclose the co-mingling to TREC monthly
Explanation
Co-mingling client funds with personal or business operating funds is strictly prohibited under TREC rules. Trust funds must be kept in separate, designated trust or escrow accounts. Violations can result in serious disciplinary action.
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