Commingling

In real estate practice, commingling refers to the improper mixing of trust funds with personal or business funds, in violation of fiduciary and legal requirements. This occurs when a broker or agent deposits personal or office money into a trust account or, conversely, places client trust funds (such as earnest money deposits) into a personal or operating account. Commingling is strictly prohibited under real estate law because it endangers client funds and undermines the broker’s fiduciary duty. Even unintentional commingling can result in serious disciplinary action, including fines, license suspension, or revocation.