Under Idaho license law, mixing client funds such as earnest money deposits with a broker's personal or business operating funds is known as commingling and is considered:
Correct Answer
B) A violation of Idaho license law that can result in license suspension or revocation
Commingling — mixing client funds with a broker's personal or business operating funds — is strictly prohibited under Idaho license law (Idaho Code Title 54, Chapter 20). It is a serious violation that can result in license suspension or revocation by the Idaho Real Estate Commission, and may lead to criminal charges if client funds are converted for the broker's personal use (conversion). Brokers must maintain a separate trust account for all client funds at all times, regardless of the amount or the client's consent.
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