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.
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- Conversion
Using money held in trust for others for the broker's own benefit, a serious TRELA violation that can carry criminal penalties.
- Escrow / Trust Account
A separate account where money belonging to others is held apart from a broker's own funds, often at the title company in a Texas sale.
- Earnest Money
A good-faith deposit a buyer puts down to show serious intent, held in escrow and applied at closing.
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.