Michigan Real Estate Salesperson Practice Exam

Question: 1 / 400

Which of the following can a broker take for a deposit with the seller's approval?

Earnest money

Acceleration payment

The broker can take earnest money for a deposit with the seller's approval, making this option the correct answer. Earnest money is a sum of money given by a buyer when making an offer on a property. It demonstrates a serious intent to purchase and is typically held by the broker or an escrow agent during the transaction. The seller must approve the amount and terms under which the earnest money is collected.

In contrast, acceleration payments and other options provided do not fit the context of a deposit relating to real estate transactions. An acceleration payment is typically related to loan agreements, where a lender may require the full loan balance to be paid upon certain events, little relevant to deposits on property sales. Security deposits, often associated with rental agreements, don't pertain to a real estate purchase scenario, and a commission advance involves upfront payment of a commission to a broker, which also does not relate to deposits during the sale process.

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Security deposit

Commission advance

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