Michigan License Law
A Michigan broker's trust account must be maintained:
AIn any type of account the broker prefers
BIn a separate, non-interest-bearing or interest-bearing account at a federally insured bank✓ Correct
CIn a personal savings account for safekeeping
DIn the same account as the brokerage operating expenses
Explanation
Michigan requires brokers to maintain a separate trust account at a federally insured financial institution. Client funds must be kept separate from the broker's operating funds.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
State-Specific Concepts
Trust Account Rules
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