Property Management

A property manager who mixes tenant security deposits with the owner's operating funds is guilty of:

ASimple accounting error
BCommingling
CConversion
DBoth commingling and potentially conversion✓ Correct

Explanation

Mixing client funds with personal or other funds is commingling. If the manager uses those funds for personal purposes, it becomes conversion (theft). Both are serious violations of license law and fiduciary duty.

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