EstatePass
Practice of Real EstateEASYFREE

Can brokers commingle funds in Tennessee?

2:58
0 views

Question & Answer

Review the question and all answer choices

A

No

Correct Answer
B

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.

C

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.

D

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.

Ready to Ace Your Real Estate Exam?

Access 2,000+ free video lessons covering all 11 exam topics.