A broker keeps his operating funds in the same account with earnest money from the company trust account. Using escrow funds for this purpose is violation of the escrow accounts rule.
Escrow Accounts are those accounts which are reserved for third party, where funds are kept before they are transferred to this third party. It provides security against certain scams and frauds especially with high asset value as well as dispute prone sectors.
The broker may be comingling here, that is, mixing money from his trust account and the operating account, he may eventually convert some of the trust account money to his or her own use.
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