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Is commingling legal in Massachusetts?

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Question & Answer

Review the question and all answer choices

A

No

Correct Answer
B

Yes, under Timeshare Act

B is incorrect because the Massachusetts Timeshare Act does not provide an exception to the prohibition against commingling. While timeshare regulations may have specific requirements, they don't override the general prohibition against mixing client and broker funds.

C

Sometimes, with buyer permission

C is incorrect because buyer permission does not legally permit commingling in Massachusetts. Real estate license law requires brokers to maintain separate accounts for client funds regardless of client consent.

D

Sometimes, with seller permission

D is incorrect because seller permission does not create an exception to the commingling prohibition in Massachusetts. The law applies uniformly regardless of which party to the transaction gives permission.

Why is this correct?

A is correct because Massachusetts law strictly prohibits commingling of client and broker funds. This fundamental requirement protects client money from potential misuse and ensures proper accounting of all transactions.

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