Is commingling legal in Virginia?
Question & Answer
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No
Yes, under Timeshare Act
The Virginia Real Estate Time-Share Act (Virginia Code § 55.1-2200 et seq.) governs the sale and resale of timeshare interests but does not create any exception to the commingling prohibition; escrow requirements under the Timeshare Act are actually stricter, not more permissive.
Sometimes, with buyer permission
Buyer permission has no legal effect on the commingling prohibition in Virginia; a client cannot waive the broker's fiduciary duty to maintain separate escrow accounts, and granting such permission would not shield a broker from disciplinary action.
Sometimes, with seller permission
Similarly, seller permission does not create a legal exception to the commingling rule; the prohibition protects the integrity of the entire transaction and the public interest, not just one party's preference, so no single party's consent can override it.
Why is this correct?
Commingling is unequivocally illegal in Virginia under the Virginia Real Estate Board regulations (18 VAC 135-20-180), which require all client funds to be deposited into a separate, dedicated escrow or property management account and never mixed with the broker's personal or firm operating funds. There are no exceptions based on client permission, transaction type, or timeshare status — the prohibition is absolute. Option A is correct because Virginia law provides zero circumstances under which commingling is permissible.
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