A broker who uses client trust funds for personal expenses is guilty of:
Correct Answer
B) Conversion
Conversion is the unauthorized use of client trust funds for personal or business purposes. In Idaho, conversion is a criminal offense — not merely a civil or administrative violation. It is distinct from commingling, which is the improper mixing of client funds with the broker's own funds but does not necessarily involve personal use. A broker found guilty of conversion faces criminal prosecution in addition to license revocation by the Idaho Real Estate Commission.
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