Broker Regina commingled $5,000 of her client\'s earnest money in her personal c
ID: 395969 • Letter: B
Question
Broker Regina commingled $5,000 of her client's earnest money in her personal checking account. Is this illegal?
Yes, commingling client funds is always illegal.
No, commingling client funds is always legal.
Yes, it is only illegal if the amount of commingled funds is over $1,000.
No, it is only illegal if the amount of commingled funds is over $10,000.
The end result of rescinding the contract is
that the contract is enforceable.
that the contract has been executed.
that the contract is null and void.
that the contract has been modified but is still valid.
Jennifer wants to net $35,000 on her house. Her closing costs will be 7,500 plus a 7% commission. She owes $185,000 on her loan. What should the sale price be (round to the nearest $1,000)?
$228,000
$237,000
$245,000
$256,000
Explanation / Answer
1. Broker Regina commingled $5,000 of her client's earnest money in her personal checking account. Is this illegal-
Yes, commingling client funds is always illegal as per law.
2. The end result of rescinding the contract is that the contract is null and void as rescinding a contract frees all the parties that are obliged to the contract from it as the contract never existed.
3. Jennifer wants to net $35,000 on her house. Her closing costs will be 7,500 plus a 7% commission. She owes $185,000 on her loan. What should the sale price be (round to the nearest $1,000)-
.The gross profit after paying the commision = Net+closing cost+ loan= 35000+7500+185000=$227500
She pays 7% as commision, hence she receives 93% of the selling price.
Hence, selling price= 227500/0.93=$244623.65 = $245000(rounding to 1000).
. .
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