If a broker deposits an earnest money check into his personal account instead of an escrow account, what is this practice called?

When a broker deposits an earnest money check into a personal account instead of a designated escrow account, this practice is referred to as co-mingling. Co-mingling occurs when a broker mixes client funds with personal or business funds, which is a violation of ethical and legal standards in real estate transactions. The separation of client funds in an escrow account is crucial to ensure that these funds are protected and can be properly accounted for throughout the transaction.

Understanding co-mingling helps reinforce the importance of maintaining clear boundaries between a broker's personal finances and client transactions. This practice safeguards both the broker and the clients, ensuring transparency and accountability in handling funds. On the other hand, the other terms like conversion or escrow violation refer to different aspects of improper handling of client funds but do not specifically address the mixing of personal and client funds as co-mingling does. Trust fund mismanagement is also more general and can encompass a broader range of misconduct beyond just co-mingling.