Conversion

In legal and real estate contexts, conversion can have two distinct meanings depending on usage. First, it refers to the unlawful appropriation or misuse of another person’s property, such as the improper use or taking of trust funds by a broker or fiduciary, which may result in civil and criminal liability. Second, conversion describes the lawful process of changing property from one legal form or use to another, such as converting an apartment building into condominium units. In real estate, this type of conversion typically involves compliance with zoning laws, building codes, and disclosure requirements. Understanding the context in which the term is used is essential, as the legal consequences vary significantly between unlawful and lawful conversion.