Solved

Conversion Is a Violation of Real Estate Law and Carries

Question 29

Multiple Choice

Conversion is a violation of real estate law and carries with it a heavy penalty. Which example best illustrates conversion?


A) broker receives offer and check and puts check in a personal account, mixing it with the broker's own money
B) broker receives offer, check, and buyer's instructions to hold check until acceptance and puts check in office desk
C) broker gets signed offer and cash deposit; broker puts cash in a personal account after the offer is accepted and seller instructs broker to keep the money as part of the commission
D) broker receives offer and a $500 deposit in cash; before the acceptance, broker spends the money for supplies, then replaces the $500 when it is time to close escrow

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