California Real Estate Practice Exam

Question: 1 / 740

When is commingling of funds permitted?

Never

The correct answer is actually A Never. Commingling of funds, which refers to the mixing of personal and business funds, is never permitted in the real estate industry as it violates the fiduciary duty to safeguard client's funds. Option B is incorrect because it implies that commingling can be authorized by the client, which is not the case. Option C is incorrect because the closing process is a specific transaction and should not involve mixing of personal and business funds. Option D is also incorrect because the Department of Real Estate does not have the authority to approve commingling of funds. It is important to avoid commingling of funds to maintain honesty and integrity in the real estate business.

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When authorized by the client

During the closing process

If approved by the Department of Real Estate

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