Which of the following is a requirement for a broker in Michigan regarding client funds?

A key requirement for brokers in Michigan regarding client funds is that they must deposit client funds promptly in an escrow account. This practice is in place to ensure that the funds are handled securely and transparently, protecting both the clients and the brokerage from potential disputes or mismanagement of funds. Escrow accounts act as neutral holding places for funds, meaning that clients can have confidence in the safety and integrity of their money during a transaction. Timely deposits into these accounts reflect a broker's professionalism and commitment to adhering to legal standards in the handling of client funds.

While charging interest on earnest money may be a practice in some contexts, it is not a requirement for brokers. Similarly, holding funds indefinitely is against regulations, as funds must be managed responsibly and returned in accordance with agreements. Informing clients of the escrow account provider may be advisable for transparency but is not a formal requirement for brokers. Thus, none of these other options align with the established legal obligations of brokers in Michigan as clearly as the prompt deposit of client funds into escrow accounts does.