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Commingling in Florida means:

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Question & Answer

Review the question and all answer choices

A

Mixing client funds with broker's personal funds

Correct Answer
B

Having multiple trust accounts

Having multiple trust accounts is not commingling. Florida law actually permits brokers to maintain separate trust accounts for different purposes, as long as they're properly maintained and segregated.

C

Sharing commission with other brokers

Sharing commissions with other brokers is a normal practice called cooperation and is perfectly legal when properly documented. This has nothing to do with the illegal mixing of client funds.

D

Dual agency

Dual agency occurs when a broker represents both the buyer and seller in the same transaction. This is a separate concept that involves fiduciary duties, not the improper handling of client funds.

Why is this correct?

Commingling is illegally mixing client trust funds with the broker's operating funds.

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