Explanations

A broker is required to keep client funds, known as trust funds, separate from their own personal or business funds to prevent commingling. However, the law generally allows a broker to place funds from different clients or different real estate activities (like property management and residential sales) into the same trust account, provided that meticulous and separate records are maintained for each individual client or transaction.

The other options presented (securities permit, specific dollar amount, or fidelity bond) are not the primary conditions that make it acceptable to hold different client funds in a single trust account. While a small amount (e.g., $200) of a broker’s own funds may be kept in a trust account to cover service charges, this is an exception for the broker’s own money, not a general rule for client funds.

This record-keeping includes details of all receipts and disbursements, ensuring a clear balance for each trust account and a separate record for every client or transaction. The process of regularly checking these records against bank statements is called reconciliation.

Mixing client funds with the broker’s own money is strictly prohibited and is a serious violation that can lead to license suspension or revocation.

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