Under RELA, which of the following best defines commingling in the context of trust accounts?
Correct Answer
D) Mixing client funds with the broker's personal or business operating funds
Commingling is the prohibited practice of mixing client funds with the broker's personal or business operating funds. Under RELA, client funds must be kept separate in a dedicated escrow account.
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More Pa Rela Brokerage Rules Questions
Under RELA, a Pennsylvania brokerage must ensure that all licensees affiliated with the brokerage have completed what requirement before practicing real estate?
Under RELA, a Pennsylvania broker of record has a duty to ensure that all affiliated licensees maintain current and active licenses. If the broker discovers that a salesperson's license has expired, what must the broker do?
Under RELA, a Pennsylvania brokerage receives a written complaint from a consumer about one of its salespersons. The broker of record must take what immediate action?
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- → Under RELA, when a Pennsylvania salesperson places their license with a new brokerage, the salesperson is said to be operating under the authority of which individual?
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Previous Question
Under RELA, a Pennsylvania broker operates a main office and two branch offices. Which statement correctly describes the escrow account requirements for these offices?
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A Pennsylvania broker holds $15,000 in earnest money for a pending transaction. The sale falls through and both the buyer and seller submit written demands claiming the deposit. Under RELA, what is the broker's correct course of action?