Trust Funds
A broker who uses earnest money from one transaction to fund a shortfall in another transaction's escrow is guilty of:
AConversion✓ Correct
BCommingling
CBoth conversion and commingling
DNegligence only
Explanation
Using one client's trust funds for another purpose — such as covering a shortfall in another escrow — is conversion, the unauthorized use of another's money.
Related Alabama Trust Funds Questions
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