In Delaware, a broker who mixes client earnest money deposits with the broker's own personal or business operating funds is guilty of:
Correct Answer
B) Commingling, which is a license law violation
Commingling — mixing client funds such as earnest money or security deposits with a broker's personal or business operating funds — is strictly prohibited under Delaware license law (24 Del. C. Chapter 29). It is a serious violation that can result in disciplinary action including license suspension or revocation. Client consent does not make commingling permissible. Brokers must maintain a separate trust account for all client funds at all times.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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