Idaho License Law

In Idaho, what is 'earnest money conversion' and why is it a serious violation?

AConverting earnest money to a different currency
BUsing earnest money held in trust for personal or business expenses — a crime that violates trust accounting requirements and can result in license revocation✓ Correct
CConverting an earnest money check to cash
DApplying earnest money to the purchase price

Explanation

Converting earnest money means using client trust funds for unauthorized purposes. It is both a IREC rules violation (grounds for license revocation) and potentially a criminal offense (theft by misappropriation) under Idaho criminal law.

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