Principal Broker Jennifer maintains her brokerage's trust account. She keeps a personal balance of $800 in the account at all times to cover bank service fees. A UDRE audit reveals this practice. Under Utah Administrative Code R162-2f, how would the UDRE characterize this practice?
Correct Answer
A) Permissible, because brokers may keep a reasonable administrative balance of personal funds in trust accounts
Under Utah Administrative Code R162-2f, a Principal Broker is permitted to maintain a small administrative balance of personal funds in the trust account to cover legitimate bank service charges and fees. This limited exception to the commingling prohibition is specifically recognized in Utah's trust account rules. However, the balance must be reasonable and used only for administrative purposes — it cannot be used to supplement the broker's personal income or to cover brokerage expenses.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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