Broker Kevin maintains a trust account at a Virginia bank. He keeps $500 of his own funds in the trust account at all times to cover bank service charges and prevent the account from falling below the bank's minimum balance requirement. Under Virginia VREB regulations, which statement best describes this practice?
Correct Answer
D) It is permissible because Virginia regulations allow a broker to maintain a reasonable amount of personal funds in the trust account for the purpose of covering bank charges
Under 18 VAC 135-20-180, Virginia regulations expressly permit a broker to maintain a reasonable amount of personal funds in the trust account solely for the purpose of paying bank service charges or maintaining the required minimum balance. This is a recognized exception to the general commingling prohibition. The key is that the amount must be reasonable and used only for account maintenance purposes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
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