What type of funds must be held in a real estate broker's trust account?
Correct Answer
B) Client funds such as earnest money and security deposits
A broker's trust account must hold client funds — such as earnest money deposits and security deposits — separately from the broker's personal and business operating funds. Mixing client funds with the broker's own funds is called commingling and is a violation of Arkansas license law that can result in license suspension or revocation.
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Related Topics & Key Terms
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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.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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