Michigan Broker Lisa receives a $7,500 earnest money deposit by wire transfer on a Tuesday. She is busy with other transactions and does not record the deposit in her trust account ledger until the following Monday. Under Michigan's Occupational Code, which concern does this raise?
Correct Answer
B) A potential recordkeeping violation, because trust account transactions must be recorded promptly
Under MCL 339.2512 and the Michigan Occupational Code, brokers must maintain accurate and current records of all trust account transactions. Failing to record a deposit promptly — even if the funds were properly received via wire transfer — constitutes a recordkeeping violation. Proper trust account management requires timely ledger entries to ensure accurate accounting of all client funds at all times.
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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.
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