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Commingle refers to the combination, or mix, of client’s funds with a real estate agent’s funds in a single account.
This means that money belonging to a client that is related to a property transaction should not be deposited into a personal account or business account belonging to an agent or agency.
Sometimes also referred to as co-mingle, these actions will also be deemed as illegal even if all monies are properly accounted for right down to the penny.
The reasons for this is obviously to deter fraud and funny businesses from going on.
It also helps home buyers and sellers protect themselves from operators with bad intentions.
Earnest money belonging to clients must be held by brokers in a separate account for clarity.
However, it must be noted that funds belonging to different clients can be commingled into the same escrow account specially set up for clients without running afoul of the law.