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Complete glossary lessonGeorgia-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.

Official area

State Laws and Rules

Knowledge cluster

Georgia trust funds

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

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 exam 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.

Decision rule

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 most common exam trap?

Trap correction

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

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

Original exam check

Apply the definition

Which statement correctly explains Commingling?

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Related terms to learn next

Conversion

Conversion is the unauthorized taking, use, transfer, or exercise of control over money or property belonging to another person, including trust funds held in a real estate transaction.

Trust funds

Trust funds are money or property a Georgia broker receives on behalf of another person in a real estate matter, including earnest money, rents, security deposits, and other client or customer funds when held by the broker.

Trust account

A trust account is a separate, federally insured account in which a Georgia broker holds money belonging to others in connection with real estate activity, including earnest money when the broker receives it.

Earnest money

Earnest money is a deposit a buyer provides under a purchase agreement to show seriousness and support the transaction.

Recommended next complete lesson

Continue with State Laws and Rules complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termTrust fundsNext term Conversion

Commingling quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is 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.

What is Commingling commonly confused with?

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

How does Georgia treat Commingling?

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.