New Jersey Real Estate Exam Practice Question
A broker received a birthday check from a client. The broker decided to put it in the escrow account because it was from a client. This is
Correct Answer: B
Rationale: Placing a birthday check from a client into an escrow account constitutes commingling, as it mixes personal funds with client funds, which is against ethical and legal standards.
Option A, conversion, refers to the unauthorized use of someone else's property, which does not apply here.
Option C suggests that using a check from a business account is acceptable, but it still involves commingling personal gifts with client funds.
Option D implies that recent transactions justify the action, but the timeline does not change the fundamental issue of mixing personal and client funds.
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