For the New Mexico state exam, how should a candidate analyze a broker mixes trust funds with unrelated brokerage or personal funds?
Correct Answer
A) Commingling of trust or custodial account funds is not permitted except for narrow rule-recognized items such as limited bank-charge funds or disclosed broker funds
New Mexico trust-account rules prohibit commingling and improper personal or operating use of trust funds. Source basis: 16.61.23 NMAC, Trust Accounts: trust account designation, records, deposits, disbursements, and commingling; checked 2026-04-30.
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Related Topics & Key Terms
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Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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