Broker David is running low on operating funds and temporarily transfers $5,000 from his client trust account into his business operating account, intending to repay it within a week before anyone notices. Under Michigan law, which statement best describes this action?
Correct Answer
C) This constitutes commingling of trust funds and is a disciplinary violation regardless of David's intent or repayment
Under MCL 339.2512 and Michigan Occupational Code disciplinary provisions, commingling client trust funds with a broker's operating funds is a serious violation regardless of the broker's intent to repay or the duration of the transfer. The act of mixing funds itself constitutes the violation and can result in license suspension or revocation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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