According to Commission rule 33-28-122, what is commingling of funds?

Commingling of funds refers to the practice of mixing client funds with personal or operational funds. Under Commission rule 33-28-122, this practice is specifically prohibited to ensure that client money is safeguarded and accounted for separately from a broker's personal funds. The regulation aims to protect the interests of clients and maintain the integrity of financial transactions in real estate practices.

Allowing commingling can create confusion regarding who owns the funds, potentially leading to misuse and violations of trust. By prohibiting it, the rule reinforces the ethical obligations of brokers to protect their clients’ funds and maintain transparent financial practices. This prohibition is in place to prevent potential conflicts of interest and preserve the professionalism of real estate transactions.