New Jersey Real Estate License 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: Putting a birthday check from a client into the escrow account constitutes commingling, as it combines personal funds with client funds, which is prohibited.
Option A, conversion, refers to misappropriating client funds for personal use, which is not applicable here since the check was not used for personal gain.
Option C suggests acceptability if the check is from a business account, but this does not change the nature of commingling.
Option D implies that prior transactions might justify the action, but the occurrence of previous transactions does not permit the mixing of personal and client funds.
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