Michigan License Law
A Michigan licensee's duty of 'accounting' requires them to:
APrepare financial statements for the broker
BPromptly account for all money and property received on behalf of clients✓ Correct
CFile tax returns for the brokerage
DProvide clients with annual portfolio valuations
Explanation
The fiduciary duty of accounting requires an agent to promptly account for all money and property received in connection with the agency, including deposits, commissions, and any other funds belonging to clients.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA 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.
Math Concepts
State-Specific Concepts
License Law
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