Practice Of Real EstateBrokerage_operationsHARD
A broker mixes a small amount of personal funds into the trust account to keep it from falling below the minimum bank balance requirement. What violation, if any, has occurred?
Correct Answer
A) Commingling, because personal funds are mixed with trust funds
Mixing personal funds with trust funds is commingling, which is prohibited even if the broker's intention is to maintain a minimum balance. Some jurisdictions allow a nominal broker-owned amount, but unauthorized mixing is a violation.
Answer Options
A
Commingling, because personal funds are mixed with trust fundsB
No violation, because the broker is protecting client funds from bank feesC
Conversion, because the broker is spending trust fundsD
Price fixing, because the broker is setting account minimumsWhy This Is the Correct Answer
Sign up free to unlock full analysis
Why the Other Options Are Wrong
Sign up free to unlock full analysis
Deep Analysis of This Practice Of Real Estate Question
Sign up free to unlock full analysis
Background Knowledge for Practice Of Real Estate
Sign up free to unlock full analysis
Sign up free to unlock full analysis
Real World Application in Practice Of Real Estate
Sign up free to unlock full analysis
Related Topics & Key Terms
Key Terms:
brokerage_operationspracticetrust_accountcommingling
Was this explanation helpful?
More Practice Of Real Estate Questions
Rhode Island Real Estate Law mandates E&O insurance. What is its purpose?
Fair housing complaints in WV can be filed with:
How many members serve on the New Mexico Real Estate Commission (NMREC)?
Nevada law requires purchase agreement copies be kept for at least:
For a month-to-month tenancy to be legally valid, which must the contract include?
- → A WV licensee violating fair housing may face:
- → Is commingling legal in Hawaii?
- → In NYC, a security deposit for residential rentals cannot exceed:
- → A 55+ community in Florida must have at least what percentage of units with a resident 55 or older?
- → Under Florida fair housing law, advertising that states 'near church' is:
- → In Florida, a landlord must return security deposit within:
- → How many hours of CE are required for Hawaii salespersons?
- → Alaska fair housing law adds which protected classes beyond federal law?
- → Delaware has license reciprocity with which states?
- → How long are terms for NH Real Estate Commission members?