New Jersey License Law

Under NJ license law, a real estate broker who fails to account for and remit client funds is guilty of:

AA minor administrative infraction
BConversion, subject to NJREC license revocation and criminal charges✓ Correct
COnly a civil breach of contract
DGrounds only for a private lawsuit

Explanation

Failure to properly account for and remit client funds constitutes conversion—the unauthorized appropriation of another's property—which is both a serious NJREC disciplinary matter subject to license revocation and a potential criminal offense.

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