Definition: In this brokerage context, conversion means unauthorized use or control of money or property that belongs to someone else, depriving that person of their rights to it.
Example
A broker uses a buyer’s earnest-money deposit to pay the brokerage’s office rent without authorization.
Keep the distinction clear
Commingling mixes funds; conversion misuses or wrongfully controls them. One act can involve both. This meaning is different from converting apartments to condominiums or changing units in a math problem.
Related terms
Commingling (Commingle) · Escrow
Keep studying
Florida Escrow Accounts: Personal Funds and Interest-Bearing Accounts
References: U.S. District Court, Middle District of Florida: definition of conversion · DBPR: escrow and trust accounts
Pronunciation (US): kuhn-VER-zhun (capitals show stress)
Pronunciation reference: Merriam-Webster
Comments
0 comments
Article is closed for comments.