Under New Jersey license law, which of the following acts by a licensee constitutes 'commingling' and is grounds for disciplinary action?
Correct Answer
B) Depositing a client's earnest money into the broker's personal checking account
Under N.J.S.A. 45:15-17(n) and NJREC regulations, commingling occurs when a licensee mixes client funds with the broker's own personal or business operating funds. Depositing earnest money into the broker's personal checking account is a textbook example of commingling and is expressly prohibited, constituting grounds for license suspension or revocation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
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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