Which of the following describes "conversion" in the context of real estate?

In the context of real estate, "conversion" specifically pertains to the unauthorized control or use of another person's property, particularly in relation to funds that are entrusted to agents, such as real estate brokers or sales associates. This typically occurs when a licensee improperly uses the funds they hold in trust for clients or customers for their own benefit, which is a violation of fiduciary duties and can lead to legal consequences.

Understanding this term is critical in the realm of real estate because it highlights the importance of ethical conduct and the proper handling of client funds. It distinguishes legitimate practices from wrongful actions that compromise the integrity of the real estate profession.