Michigan Real Estate Exam Practice Question
In Michigan, which of the following BEST describes a security deposit?
Correct Answer: B
Rationale: In Michigan, a security deposit is defined as an amount equal to a maximum of 1.5 months' rent, making option B accurate.
Option A is incorrect because the security deposit is not considered the tenant's found property; it is held by the landlord as a safeguard against potential damages or unpaid rent.
Option C misrepresents the law, as the maximum limit for security deposits is set at 1.5 months' rent, not 3 months.
Option D is misleading; while landlords may use the deposit for specific purposes (like covering damages), it is not a general fund for multiple uses or personnel expenses.
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