What violations did Jill commit when she used earnest money from the escrow account?

Using earnest money from the escrow account typically involves handling funds that are meant to be held in trust for a buyer and seller during the real estate transaction process. The correct choice highlights two significant violations: commingling and conversion.

Commingling occurs when a real estate professional mixes client funds with their own personal or business funds. In this case, if Jill used the earnest money for purposes other than its intended use—such as using it for her own expenses or business needs—this would represent commingling of funds, which is a serious ethical and legal violation.

Conversion refers to taking someone's funds or property for one's own use without permission. If Jill took the earnest money from the escrow account and used it in a manner not authorized by the buyer or for purposes outside the transaction, she would have converted those funds for her personal use, further compounding the violation.

Understanding the implications of these actions is vital for real estate professionals, as they highlight the importance of maintaining the integrity of client funds and adhering to professional ethical standards. Commingling and conversion can lead to severe penalties, including fines and loss of licensure.