Maine License Law
A Maine licensee who 'converts' client funds to personal use is committing:
ACommingling only
BConversion, which is a civil tort and criminal offense✓ Correct
CA minor bookkeeping violation
DEmbezzlement only
Explanation
Conversion is the unauthorized use of another's property for one's own benefit. Using client trust funds for personal purposes is conversion — a civil tort (breach of fiduciary duty) and potentially a criminal act.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
State-Specific Concepts
Trust Account Rules
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