The correct term for when a broker misappropriates client funds is "conversion." In the realm of real estate and finance, conversion refers to the unauthorized use of someone else's property, in this case, funds that belong to clients. When a broker takes client money for their personal use, that action constitutes conversion, which is a serious legal violation and can lead to disciplinary action against the broker, including the potential loss of their license and legal consequences.
Commingling, while it may seem similar, refers to the improper mixing of client funds with the broker's personal funds, but it does not necessarily imply the broker has taken the funds for their own use. Conveyance relates to the transfer of property rights and is not relevant to misappropriation. Consideration generally refers to something of value exchanged in a contract, such as money or services, and is also not pertinent in the context of mishandling client funds. Thus, conversion is the precise term that denotes the act of misappropriation in this situation.