During an audit, the Washington DOL discovers that a designated broker at Pacific Coast Realty has been commingling client funds with the firm's operating account. Which of the following best describes the DOL's authority in response to this violation?
Correct Answer
A) The DOL may suspend or revoke the designated broker's license and impose civil fines
Under RCW 18.85.361, the DOL has broad disciplinary authority, including the power to suspend or revoke licenses and impose civil fines for violations of the license law, including commingling client funds with operating funds. Commingling is a serious violation that can result in immediate and severe disciplinary action against both the individual licensee and the firm.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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