What is the general consequence if a licensee or broker uses trust funds for their own purposes?

Using trust funds — earnest money, deposits, or rents held for others — for the licensee's or broker's own purposes is conversion, one of the most serious violations in real estate regulation. Because these funds belong to the clients or parties to the transaction and not to the licensee, converting them can result in license suspension or revocation, fines, restitution, and even criminal prosecution, regardless of any intent to repay. Conversion is distinct from commingling (improperly mixing funds), though both are prohibited. States require that trust funds be kept segregated and used only as the transaction and the parties' instructions allow. The state portion treats trust-fund integrity as a core duty.