Under TREC rules, a broker who receives earnest money but does not have a trust account established commits which type of violation?
Correct Answer
A) A serious trust account violation, because brokers must have a trust account before accepting client funds
Accepting earnest money without having a trust account is a serious violation of TREC rules. Brokers must establish a trust account before accepting any client funds. Holding client funds in personal accounts is commingling.
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