Business Degree Certification Practice Test

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A California real estate broker manages a trust account. Which of the following is TRUE regarding the commingling of funds?

Commingling is permissible if the broker's personal funds do not exceed $200 and are used to cover bank charges. Commingling is strictly prohibited under all circumstances. A broker may commingle funds if they provide written disclosure to all parties involved. Commingling is allowed for up to 30 days, after which funds must be separated.

Correct Answer:

Commingling is permissible if the broker's personal funds do not exceed $200 and are used to cover bank charges.

Explanation:

In California, a broker may keep up to $200 of their personal funds in a trust account to cover bank charges or maintain the account, which is an exception to the general prohibition against commingling.

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