Direct answer
What does Commingling mean?
Mixing client funds or property with a broker's own funds or property.
Exam cue: Separate commingling from conversion. Commingling is the improper mixing itself.
What does it look like in a question?
New York example
A broker deposits an earnest money check into the brokerage operating account.
Common exam trap
What should you not confuse it with?
Conversion is unauthorized use of another person's funds. It can occur after commingling, but the terms are not identical.
Related license law terms
Article 12-AThe part of New York Real Property Law that regulates real estate brokers and salespersons.Article 78 proceedingA court proceeding used to seek review of certain actions or determinations by a New York state or local body.Blind advertisementA real estate advertisement that fails to identify the broker or brokerage as required by New York advertising rules.ConversionWrongful exercise of control over another person's money or property that seriously interferes with that person's rights.EscrowMoney, documents or property held under stated conditions until a transaction event occurs.Net listingA listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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