Salesperson Patricia received a $5,000 earnest money deposit from buyer Chen in connection with the purchase of a home in Manchester, New Hampshire. Patricia deposited the funds into her personal checking account, intending to transfer them to her broker's escrow account the following week. Under RSA Chapter 331-A, which of the following best describes Patricia's violation?
Correct Answer
A) Patricia has engaged in commingling, which is a violation of RSA 331-A and grounds for disciplinary action by the NHREC.
Depositing client funds into a personal account rather than the broker's designated escrow or trust account constitutes commingling under RSA 331-A. This is a violation of NH license law regardless of intent or the short duration of the deposit. The NHREC may impose disciplinary sanctions, including suspension or revocation of Patricia's license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
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