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Conversion

Wrongful exercise of control over another person's money or property that seriously interferes with that person's rights.

Direct answer

What does Conversion mean?

Wrongful exercise of control over another person's money or property that seriously interferes with that person's rights.

Exam cue: In an exam question about entrusted funds, look for a broker using or controlling the money for an unauthorized purpose, even if repayment is planned.

What does it look like in a question?

New York example

A broker takes money from a client deposit account to cover office rent.

Common exam trap

What should you not confuse it with?

Commingling is improper mixing. Conversion requires wrongful control or use.

Related license law terms

Article 12-AThe part of New York Real Property Law that regulates real estate brokers and salespersons.Article 78 proceedingA court proceeding used to seek review of certain actions or determinations by a New York state or local body.Blind advertisementA real estate advertisement that fails to identify the broker or brokerage as required by New York advertising rules.ComminglingMixing client funds or property with a broker's own funds or property.EscrowMoney, documents or property held under stated conditions until a transaction event occurs.Net listingA listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.
Sources used2 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

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