Can brokers commingle funds in Tennessee?
Question & Answer
Review the question and all answer choices
No
Yes, under Timeshare Act
The Timeshare Act in Tennessee does not create an exception to the commingling prohibition. All broker-client funds, regardless of transaction type, must be kept in separate trust accounts.
Sometimes, with buyer permission
Buyer permission does not override statutory requirements. Tennessee law prohibits commingling regardless of client consent, as this is a fundamental consumer protection measure.
Sometimes, with seller permission
Seller permission does not override statutory requirements. Tennessee law strictly prohibits commingling of client funds with broker funds, regardless of consent.
Why is this correct?
Commingling is prohibited.
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