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EXAM REVIEW
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Texas Real Estate National Exam Latest Update
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Question Number 69
A broker is running short of funds to meet this month's operating expenses. He places a client's earnest money deposit in his business account and uses it to pay his rent. After his next closing, he replaces the client's deposit in his trust account. The broker:
is guilty of conversion
is guilty of commingling
is not guilty of any crime because he replaced the funds before they were needed
is guilty of fraud and embezzlement
✔ Correct Answer:
is guilty of conversion
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