A broker is establishing office procedures for trust fund management. All of the following are proper trust fund practices EXCEPT.
Correct Answer
B) Placing the broker's personal funds in the trust account to earn interest on the combined balance
Placing personal funds in the trust account is commingling, which is prohibited. A small amount of broker funds may be kept in the trust account to cover bank fees, but intentionally adding personal funds to earn interest on the combined balance is a violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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.
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