Marcus, a Virginia-licensed broker, commingled client escrow funds with his personal operating account for three weeks before correcting the error. A complaint was filed with the VREB. Under Virginia License Law and VREB regulations, commingling of client funds is:
Correct Answer
B) A violation subject to disciplinary action regardless of whether any client funds were actually lost
Under 18 VAC 135-20-180 and Va. Code § 54.1-2130, commingling client funds with personal or operating funds is a per se violation of VREB regulations. The violation occurs at the moment of commingling, regardless of whether any funds were lost or whether the broker corrected the error later. Disciplinary action may follow even if no client suffered financial harm.
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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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