Under Virginia VREB regulations, a principal broker is required to maintain a separate escrow (trust) account for client funds. Which of the following actions by a broker would be considered a violation of Virginia's trust account rules?
Correct Answer
C) Depositing the broker's own personal funds into the trust account to cover a temporary shortage
Under 18 VAC 135-20-180, commingling personal or business funds with client trust funds is strictly prohibited in Virginia. Depositing the broker's own funds into the trust account — even temporarily — constitutes commingling and is a serious violation that can result in license suspension or revocation by VREB.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
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