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Commingling
The illegal practice of mixing client or tenant trust funds—such as security deposits—with property management operational or personal business accounts.
Commingling is the illegal and actionable practice of mixing fiduciary client or resident trust funds with a property manager's corporate operating capital or personal bank accounts.
State real estate commissions impose severe penalties, including license revocation, financial restitution, and civil damages, for commingling security deposits or owner operational reserves.
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