Under TREC rules, brokers must follow specific procedures when handling trust accounts. All of the following are proper trust account practices EXCEPT:
Correct Answer
C) Using trust account funds to pay the broker's office rent when cash flow is tight, with the intention of repaying later
Using trust account funds for the broker's personal or business expenses — even with the intention of repaying — is conversion and commingling. Trust funds are exclusively for client and third-party deposits and may never be used for the broker's operating expenses.
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