Massachusetts License Law
A Massachusetts real estate licensee who acts as a property manager and collects rents without depositing them into a trust account has committed:
AA technical violation requiring a written warning only
BConversion of client funds, which is a serious disciplinary offense✓ Correct
CA violation only if the amount exceeds $10,000
DAn administrative error that can be corrected by repaying the funds
Explanation
Using client funds (rents, security deposits) for personal purposes or failing to deposit them into a trust account constitutes conversion (misappropriation) of client funds. This is one of the most serious violations of Massachusetts license law and can result in license revocation and criminal prosecution.
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