Which of the following best defines 'commingling' in real estate?

Commingling in real estate refers to the improper practice of mixing client funds with personal funds or business operating funds. This definition is reflected in the notion of using client funds for personal investments. It signifies a breach of trust and fiduciary duty, which could lead to significant legal repercussions for a real estate agent or broker.

In contrast, keeping client funds separate from business funds directly opposes the concept of commingling as it highlights the importance of maintaining clear boundaries between clients' money and personal or company finances. Collecting fees from clients and offering discounts do not involve the mingling of funds and therefore do not pertain to the definition of commingling. Understanding this distinction is vital for maintaining ethical standards in real estate transactions.