Michigan License Law
Michigan law requires that a broker maintain a separate trust (escrow) account for client funds. Co-mingling occurs when:
AThe broker deposits their own earned commissions into the trust account
BClient funds are mixed with the broker's personal or operating funds✓ Correct
CThe trust account is used for property repairs
DTwo clients' funds are held in the same trust account
Explanation
Co-mingling is the prohibited practice of mixing client funds (earnest money, rents, etc.) with the broker's own personal or business operating funds. Michigan law requires strict separation of trust funds.
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