R 339.22313 Trust or escrow accounts.
Rule 313. (1) In addition to complying with the provisions of the code, a trust or
escrow account must comply with all of the requirements of this rule.
(2) A trust or escrow account must be maintained in a demand account only.
Checks drawn on a trust or escrow account must be signed by a broker or an associate
broker. Cosignatories may be used; however, the signature of a broker or associate
broker must accompany this signature.
(3) A broker shall deposit all funds received in a fiduciary capacity, including
escrow funds and earnest money, in a non-interest-bearing demand trust account. The
account must be maintained pursuant to the requirements of section 2512(1)(k) of the
code, MCL 339.2512.
(4) A broker shall maintain a record of all funds received. At a minimum, the record
must include all of the following information:
(a) The date that the funds were received and the date of deposit.
(b) The name of the party who provided the funds.
(c) The amount of the funds received and deposited and the method of payment.
(5) A broker shall maintain a record of all funds disbursed. At a minimum, the
record must include all of the following information:
(a) The name of the party to whom funds were disbursed.
(b) The date of the disbursement.
(c) The check number.
(d) The purpose of the disbursement.
(e) The amount of the disbursement.
(6) The broker’s records must reflect the current account balance of each account
maintained and must be made available to the department upon request.
(7) The broker’s records must reflect the receipts and disbursements as they affect a
single, particular transaction between a buyer and seller and must contain, at a minimum,
all of the following information:
(a) For funds received, the record must include all of the following information:
(i) The names of both parties to a transaction.
(ii) The property address or brief legal description.
(iii) The dates and amounts received.
(b) For funds disbursed, the record must include all of the following information:
(i) The date of the disbursement.
(ii) The name of the payee.
(iii) The check number.
(iv) The amount of the disbursement.
(8) All trust or escrow account records must be maintained for a period of not less
than 3 years from the date of inception of the records.
(9) A broker or associate broker’s disbursement of an earnest money deposit must
be made at consummation or termination of the agreement pursuant to the agreement
signed by the parties. However, any deposit in the trust account of the broker for which
the buyer and seller have made claim must remain in the broker's trust account until a
civil action has determined to whom the deposit must be paid, or until the buyer and
seller have agreed, in writing, to the disposition of the deposit. The broker may also
commence a civil action to interplead the deposit with the proper court.