Broker Carol in Grand Rapids is reviewing her trust account practices with a compliance consultant. The consultant identifies several actions Carol has taken. Which of the following actions would NOT constitute a trust account violation under Michigan's Occupational Code?
Correct Answer
B) Carol maintained a separate ledger entry for each client's funds within one trust account
Maintaining a separate ledger entry for each client within a single trust account is NOT a violation — it is actually the correct and required practice under MCL 339.2512. Michigan law allows a broker to hold multiple clients' funds in one trust account, provided that the broker maintains accurate individual ledger records for each client. This practice ensures proper accounting without requiring a separate bank account for each transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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