Michigan License Law

Which of the following acts constitutes 'commingling' in Michigan?

ADepositing client earnest money into a trust account
BMixing client funds with the broker's personal or business operating funds✓ Correct
CSplitting commissions between two brokers
DHolding escrow funds for more than 30 days

Explanation

Commingling is the illegal mixing of client funds (such as earnest money) with a broker's personal or operating funds. Michigan law requires brokers to maintain separate trust accounts to prevent commingling.

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