Michigan License Law
Michigan's Occupational Code requires that a real estate broker maintain a trust account primarily to:
AHold the broker's personal investment funds
BSegregate client funds such as earnest money from the broker's operating funds✓ Correct
CPay licensee commissions
DCover errors and omissions insurance premiums
Explanation
Michigan brokers are required to maintain a separate trust (escrow) account to hold client funds such as earnest money deposits, keeping them segregated from the broker's own business or personal funds.
Related Michigan Michigan License Law Questions
- A Michigan real estate licensee who engages in 'net listings' is:
- In Michigan, a 'managing broker' is responsible for:
- LARA may initiate disciplinary action against a Michigan licensee for which of the following?
- The Michigan Seller Disclosure Act requires sellers to:
- Under Michigan law, which of the following actions requires a real estate license?
- Under Michigan law, a licensed broker may do all of the following EXCEPT:
- Which agency oversees real estate licensing in Michigan?
- Michigan law requires that a broker maintain a separate trust (escrow) account for client funds. Co-mingling occurs when:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →