agency
conversion
Conversion is the illegal use of a client's or customer's money or property for the licensee's own purposes, such as spending escrowed earnest money. It is a more serious violation than commingling and can lead to license revocation, civil liability, and criminal charges. In a different context, conversion also refers to changing a rental building into condominiums.
- Exam tip
- Commingling is mixing funds; conversion is actually taking or using them. Exams often ask which is worse: conversion.
- Example
- A broker uses $10,000 in buyer deposits from the trust account to pay office rent. That is conversion.
Related terms & state variants
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Last verified: 2026-10-23