General Principles Of AgencyProperty_management_commercial_teamsMEDIUM
A property manager collects a $2,000 security deposit from a new tenant. Under proper trust fund handling, where must the property manager deposit the security deposit?
Correct Answer
B) In a trust or escrow account as required by state law and the management agreement
Security deposits are trust funds that belong to the tenant or owner, not the property manager. They must be deposited in a designated trust or escrow account as required by state law and the management agreement.
Answer Options
A
In the property manager's personal checking accountB
In a trust or escrow account as required by state law and the management agreementC
In the property manager's business operating account to earn interestD
The property manager may keep the deposit in cash at the management officeWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
trust_fundssecurity_depositescrowproperty_managementagency
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