Conversion
Using entrusted escrow funds for the broker's own benefit, a serious Florida license law violation that can carry criminal penalties.
Conversion is taking escrow funds that belong to others and using them for personal or business purposes. A broker who spends a buyer's earnest money has converted those funds. Conversion goes beyond commingling because the money is actually used, not just mixed.
Conversion is among the most serious violations a licensee can commit. It can result in license revocation and criminal charges in addition to administrative penalties.
On the exam
Exam trap
Tested in
Brokerage Activities (12% of the exam)
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- Commingling
Mixing escrow funds with a broker's personal or business funds, which is a Florida license law violation.
- Escrow Account
A separate trust account where a broker holds funds belonging to others, kept apart from the brokerage's own money.
- Earnest Money
A good-faith deposit a buyer puts down to show serious intent, held in escrow and applied at closing.
This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.