What is considered diversion of funds in relation to the occupational code?

Diversion of funds in relation to the occupational code specifically refers to the failure to properly manage and account for money that has been entrusted to a builder or salesperson by others. This includes situations where a builder fails to segregate client funds from personal or business funds, leading to a situation where those funds are not utilized as intended for a specific project or obligation. This practice can result in a breach of trust and can have legal implications, as it undermines the fiduciary responsibility that builders and salespersons have to their clients.

Effectively, this choice encapsulates the essence of what constitutes a diversion of funds by highlighting the importance of accurately accounting for and managing other people's money. The other choices may involve unethical practices in a business context, but they do not directly address the issue of failing to account for or improperly managing funds that belong to clients or third parties.