Agency & LawQuestion 35 of 120
Placing client or earnest money funds into a broker's personal or general business account instead of a proper trust or escrow account is called:
a.Novation
b.Subrogation
c.Commingling (or conversion if used)
d.Estoppel
Explanation
Commingling is improperly mixing client funds with the broker's own funds, and using those funds is conversion. Both are serious violations that can lead to license discipline.
Practice all 120 questions free — no signup required.
Related questions on this topic
- A seller instructs the listing agent to conceal a known foundation problem from prospective buyers. The agent should:
- Confidential information the agent learns about the principal, such as the seller's willingness to accept less than list price, must generally be:
- The duty of 'accounting' in an agency relationship requires the agent to:
- A listing agreement that gives one broker the right to sell but allows the seller to sell on their own without owing a commission is a(n):
- Under an 'exclusive right to sell' listing, the broker earns a commission:
- A 'net listing,' where the broker keeps any amount above a price set by the seller, is:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against Texas Real Estate Sales Agent Licensing Exam · How we review