What authority does the Department possess regarding brokers’ accounts?

The authority of the Department regarding brokers' accounts primarily includes the ability to audit broker trust accounts at random. This is crucial for ensuring compliance with state regulations that govern the handling of client funds. Regular audits help maintain the integrity and transparency of brokers' financial practices, protecting clients and the public from potential misuse of funds.

Auditing random trust accounts allows the Department to identify any discrepancies or violations of the law, ensuring brokers are maintaining proper records and adhering to the requirements set forth in the Michigan Real Estate License Act. This oversight is essential for upholding the standards of the real estate profession and safeguarding consumer interests.

In contrast, the other options do not align with the Department's role. The Department does not approve individual broker transactions, define commission rates for brokers, or issue refunds to clients, as these responsibilities fall outside their jurisdiction. Rather, the Department's key function is oversight and regulation to promote ethical practices within the real estate industry.