New Jersey Real Estate Practice 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 prohibited.
Option A, conversion, refers to using client funds for personal gain, which does not apply here since the broker is not taking the funds for personal use.
Option C is incorrect; even if the check was from a business account, it still represents personal funds and should not be mixed with escrow accounts.
Option D is also wrong; the timing of previous transactions does not justify the mixing of personal gifts with escrow funds.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now