What is an implication of commingling in real estate practice?

In real estate practice, commingling refers to the improper mixing of a client's funds with those of the real estate agent or broker. This action is a violation of trust and ethical standards in the industry. The implication of commingling can lead to financial penalties because it undermines the fiduciary duty that agents owe to their clients. By not maintaining a clear separation between personal and client funds, agents may expose themselves to legal action, loss of their license, and financial consequences. It is crucial for agents to manage client funds appropriately, typically by using separate trust accounts, to avoid these severe implications.