Utah License Law

A Utah licensee who deposits earnest money into their personal bank account instead of the broker's trust account has committed:

AA minor paperwork violation
BCommingling and possibly conversion, both serious license violations✓ Correct
CAn acceptable practice if the funds are transferred within 30 days
DNo violation if the funds are kept separate in the account

Explanation

Depositing client funds into a personal account is commingling—mixing client funds with personal funds—regardless of intent to keep them 'separate.' If funds are used for personal purposes, it becomes conversion (theft). Both are serious violations that can result in license revocation.

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