North Dakota License Law
A real estate licensee convicted of conversion of client funds faces which penalty?
AA written reprimand only
BLicense suspension or revocation and potential criminal prosecution✓ Correct
CA fine of up to $500 only
DMandatory additional education
Explanation
Conversion of client funds (misappropriating money held in trust) is a serious violation that can result in license suspension or revocation and may also result in criminal prosecution for fraud or theft.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
State-Specific Concepts
License Law
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