H.B. 5643: COMMITTEE SUMMARY REAL ESTATE BROKER’S DEPOSIT
House Bill 5643 (as passed by the House) Sponsor: Representative Susan Grimes Munsell House Committee: Commerce
Senate Committee: Financial Services
Date Completed: 9-17-96
The bill would amend the Occupational Code to revise the deadline for a real estate broker’s deposit of money belonging to others and put forth in connection with a purchase offer.
Currently under the Code, within two banking days after the signing of a purchase agreement by all parties, but not later than five days receipt, a real estate broker must deposit money belonging to others in a separate custodial trust or escrow account maintained by the broker with a bank, savings and loan association, credit union, or recognized depository. When the transaction involved is consummated or terminated, the broker must account for the full amount received. Under the bill, a real estate broker would have to deposit the money within two banking days after he or she received notice that an offer to purchase was accepted by all parties.
The bill includes an effective date of July 1, 1996.
MCL 339.2512 Legislative Analyst: P. Affholter
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: M. Tyszkiewicz
S9596\S5643SA
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.
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