Michigan License Law Practice Test

Depositing an earnest money check in a personal account is a violation of fiduciary duty and trust account regulations, which can directly lead to the revocation of a real estate salesperson's license. Real estate professionals are required to keep client funds, such as earnest money, separate from their personal funds to ensure that clients are protected and that there are no co-mingling of funds. This practice is fundamental to maintaining trust and integrity within the profession, as it safeguards clients' money and prevents potential fraud.

Maintaining a trust account for client funds is essential, and failure to do so undermines the ethical standards expected from a real estate agent. Such actions can result in disciplinary measures, including the revocation of the license, as they reflect a serious breach of professional responsibility. Other options, while also serious, typically lead to different consequences, such as fines or mandated additional training, rather than immediate license revocation.