Conversion vs Commingling Flashcards

Conversion vs Commingling Flashcards ComminglingMixing escrow funds with personal funds Commingling is mixing client funds with your own; conversion is using them.What is the difference between commingling and conversion?Commingling is mixing client funds with your own; conversion is using them.One involves client funds; the other involves your own funds only.Only commingling is illegal.They are the same thing.RigbyGreta is working with agent Brandon to sell some property.Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money?BrandonGretaNelsonRigby ConversionUsing escrow funds for unauthorized purposes Cynthia deposited her client's earnest money check into her personal checking account until she had a chance to transfer it to the brokerage's trust account.One of the following licensees' actions would constitute commingling. Which is it?Cynthia deposited her client's earnest money check into her personal checking account until she had a chance to transfer it to the brokerage's trust account.Jenson deposited his client's earnest money check into the firm's trust account.Jessica deposited her commission check into her brokerage firm's operating account.Sean withdrew funds from the firm's operating funds to pay the firm's office rent.An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied.Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer. What will happen to the check now?An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied.Her agent will hold the check in the firm's operating account until Jeung's offer is accepted.Jeung's agent will transfer the funds to the seller.The seller's agent will deposit the funds in his operating account until closing.