Law & License

    Commingling

    Mixing money held in trust for others with a broker's personal or business funds, which is a TRELA violation.

    Commingling is placing money held in trust for others, such as a buyer's earnest money, in the same account as the broker's personal or business funds. A Texas broker must keep trust money separate from operating money. Depositing earnest money into the brokerage operating account is commingling.

    Commingling is a ground for discipline under TRELA and the TREC Rules. The cleaner practice is a dedicated trust account, with trust money deposited and disbursed only as authorized.

    On the exam

    Pair this term with conversion. Commingling is mixing trust money with the broker's own funds; conversion is using it. The exam tests the difference.

    Exam trap

    Commingling and conversion are not the same violation. Commingling is mixing trust money with personal funds. Conversion is using trust money for personal benefit and is the more serious offense.

    Tested in

    Standards of Conduct (8% of the exam)

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    This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.