What does the term "commingle" refer to in real estate transactions?

The term "commingle" in real estate transactions specifically refers to the mixing of escrow money with a broker's personal funds. This practice is highly discouraged and often illegal because it can lead to issues of misappropriation and a lack of transparency in financial dealings. Brokers are required to maintain strict boundaries between client funds, such as those held in escrow for real estate transactions, and their own personal or business funds. By keeping these funds separate, it ensures accountability and protects clients' financial interests throughout the transaction process. Therefore, understanding the implications of commingling is crucial for anyone involved in real estate to uphold ethical standards and legal requirements.