Illinois 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 the escrow account constitutes commingling, as it mixes personal funds with client funds, violating ethical standards in real estate transactions.
Option A, conversion, refers to misappropriating client funds for personal use, which does not apply here since the broker is not using the funds personally.
Option C suggests that using a check from a business account is acceptable, but it still does not address the fundamental issue of commingling personal gifts with escrow funds.
Option D implies that past transactions justify this action, but it does not change the inappropriate mixing of personal and client funds.
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