A broker commingles client earnest money deposits with the brokerage operating account funds. What law or regulation has the broker most likely violated?
Correct Answer
C) The requirement to maintain separate trust accounts for client funds
Commingling client funds with the broker's operating account violates the requirement to maintain separate trust accounts, a serious regulatory violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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A listing agreement creates an agency relationship between:
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