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!

Practice this question and more.

When is commingling of funds permitted?

Never
When authorized by the client
During the closing process
If approved by the Department of Real Estate

The correct answer is: Never

The correct answer is actually A Never. Commingling of funds, which refers to the mixing of personal and business funds, is never permitted in the real estate industry as it violates the fiduciary duty to safeguard client's funds. Option B is incorrect because it implies that commingling can be authorized by the client, which is not the case. Option C is incorrect because the closing process is a specific transaction and should not involve mixing of personal and business funds. Option D is also incorrect because the Department of Real Estate does not have the authority to approve commingling of funds. It is important to avoid commingling of funds to maintain honesty and integrity in the real estate business.