Under Michigan's Occupational Code, which of the following is NOT a requirement for a Michigan real estate broker's trust account?
Correct Answer
C) The trust account must bear interest that is paid directly to the clients whose funds are held
Michigan law does not require that a broker's trust account bear interest, nor does it require that any interest earned be paid to clients. Trust accounts may be non-interest-bearing accounts, and if interest is earned, the disposition of that interest is governed by the agreement of the parties — not a statutory requirement to pay it to clients. The requirement to pay interest to clients is NOT a standard Michigan trust account requirement under MCL 339.2512.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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