California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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When is commingling of funds permitted?

Never
When authorized by the client
During the closing process
If approved by the Department of Real Estate

The correct answer is: 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.