A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the broker deposited the buyer's money into the broker's business account. What is this action called?

Question

Business

Giles

31 May, 08:00

A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the broker deposited the buyer's money into the broker's business account. What is this action called?

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Answers (1)

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Gilbert Walton · Answer 1

"Conversion"

Explanation:

A Broker received the enthusiastic capital of a buyer. He dropped the capital in particular Trust account, although when his electric bill remained due, the Broker dropped the buyer's capital toward the Broker's business account. This action is introduced as "Conversion." Conversion indicates money taking this should be handled in escrow for the parties as well as utilizing the money for that broker's private requirements (such as managing money). This is an unlawful act. So, hence in the given statements, the Broker does an action that signifies conversion.