The Department has jurisdiction to do which of the following?

• A. Audit broker's trust account at random
• B. Set interest rates for mortgages
• C. Approve real estate transactions
• D. Issue building permits

Answer: (A)

The key idea is regulatory oversight of how brokers handle client funds. In Michigan, the real estate regulator has the authority to audit a broker’s trust account at random to verify that client funds are kept separate from the broker’s own funds, that records are accurate, and that proper trust accounting procedures are followed. These random audits help protect consumers by ensuring fiduciary duties are met and violations are detected and addressed.

Mortgage interest rates are determined by lenders and market conditions, not by the real estate regulator. Approving real estate transactions isn’t a function of the regulator either—the parties to a contract or a court handle that. Building permits are issued by local government building departments, not the state real estate department.