California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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Depositing a buyer's deposit check into the broker's business operating account is known as what?

Standard practice
Commingling and is a violation
Earmarking
Reconciliation

The correct answer is: Commingling and is a violation

Commingling is defined as mixing a client's funds with the broker's personal or business funds. Doing so is a violation as it puts the client's money at risk. Options A, C, and D are not correct because they do not involve mixing client's funds with the broker's personal or business funds. Standard practice refers to a common and accepted way of handling something. Earmarking refers to setting aside funds for a specific purpose. Reconciliation refers to the process of comparing records to ensure accuracy. Therefore, option B is the only one that accurately describes depositing a client's check into the broker's business operating account.