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Real estate glossaryGeorgia-specific rule

Commingling

Commingling is the improper mixing of money belonging to clients, customers, tenants, owners, or other persons with a broker's personal or operating funds.

Exam area: State Laws and Rules

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What does “commingling” mean in real estate?

Commingling is the improper mixing of money belonging to clients, customers, tenants, owners, or other persons with a broker's personal or operating funds.

How is “commingling” different from the closest wrong answer?

Commingling is improper mixing. Conversion is unauthorized control or use of another person's funds. Conversion can occur with or without prior commingling.

What is the Georgia-specific rule?

Georgia requires separate trust or escrow accounts for covered funds. A broker may keep only an amount expressly permitted for account service charges or similar purposes under the rules.

Worked exam example

Scenario

A broker deposits an earnest-money check into the firm's operating account for two days before moving it to trust. The temporary mixing is commingling.

What is the most common exam trap?

Trap correction

Good intentions, prompt replacement, or absence of consumer loss do not erase the violation.

Original exam check

Apply the definition

On a Friday, a broker deposits a buyer's earnest-money check into the firm's operating account and moves it to the trust account on Monday. None of the money was spent. How is this best described?

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