Michigan Real Estate Exam Practice Question

Which can hold an escrow account?

Correct Answer: C

Rationale: An escrow account is typically held by entities involved in financial transactions, primarily to ensure security and compliance.

Option C is accurate as banks, brokers, and attorneys are all authorized to manage escrow accounts. Banks provide financial backing, brokers facilitate real estate transactions, and attorneys ensure legal compliance.

Option A is incorrect because real estate commissions do not manage escrow accounts; they receive payments rather than hold them.

Option B is misleading; while banks and title companies can hold escrow accounts, salespersons typically do not have this authority.

Option D is incomplete; it omits attorneys, who play a crucial role in managing escrow accounts.

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