In New Mexico, a broker mixes trust funds with unrelated brokerage or personal funds. Which statement is correct?
Correct Answer
C) 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
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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