What is a potential consequence if a broker commingles client funds?

When a broker commingles client funds, it means that the broker has mixed clients' money with their own personal or business funds. This practice is a violation of real estate laws and regulations, which require brokers to maintain separate accounts for client funds to ensure that they are managed appropriately and safely.

The consequence of commingling client funds can result in legal action against the broker. Regulatory agencies may impose penalties, which can include fines, revocation of the broker's license, or even criminal charges. This action protects clients and maintains the integrity of the real estate profession.

The other options do not accurately describe the consequences of commingling funds. For instance, preventing property transfer and leading to a breach of contract are indirect outcomes but not immediate consequences specifically tied to commingling. Increasing property value is unrelated to financial practices and does not directly connect to the actions of a broker regarding client funds. The focus remains on the legal responsibilities brokers have toward handling client funds correctly.