Which scenario represents the illegal handling of trust funds in Maryland?

In Maryland, proper handling of trust funds, such as earnest money, is governed by strict regulations to ensure client funds are protected. Trust funds must be handled with integrity and cannot be mixed with personal finances. The scenario where Shanice deposited her client's earnest money check in her personal account temporarily illustrates a clear violation of these regulations.

By placing client funds into her personal account, Shanice is not maintaining the required separation between her personal finances and the funds entrusted to her by her client. This practice exposes the funds to potential misuse and does not comply with the legal expectations that all earnest money deposits be kept in a designated, separate trust account. The handling of trust funds is crucial in maintaining trust and transparency in real estate transactions, and any deviation from these practices can lead to significant legal repercussions for the agent involved.

In contrast, the other scenarios depict actions that align with Maryland's regulatory framework for managing trust funds. For example, providing the earnest money to a broker for safekeeping is an appropriate step, as brokers are expected to manage and safeguard these funds properly. Similarly, transferring earnest money to a title company prior to closing is generally acceptable, as long as it is done according to the agreed-upon terms. Even holding the earnest money for a short