Real Estate Math
A Maine broker's escrow account contains $45,000 in client funds. The broker accidentally pays a $300 office supply bill from this account. This is known as:
AConversion
BCommingling✓ Correct
CBoth conversion and commingling
DNeither; it is a minor bookkeeping error
Explanation
Paying business expenses from a client trust account constitutes commingling (mixing client funds with business funds). If the broker used the $300 for personal benefit, it would also be conversion.
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