A broker-in-charge in Greensboro is updating the policy manual on trust account reconciliation, audit trail, and account designation. Which statement best applies under current North Carolina law?
Correct Answer
D) Company funds in a trust account are tightly limited and should not be used to mask shortages or commingling.
Company funds in a trust account are tightly limited and should not be used to mask shortages or commingling.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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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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