A property manager collects monthly rent from tenants and deposits the funds into a separate account that holds only client funds. What is this account called?
Correct Answer
D) A trust account
A trust account is a separate account used to hold money belonging to others, such as collected rents and security deposits, in accordance with law and the management agreement.
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A property management agreement authorizes the manager to spend up to $500 on emergency repairs without prior owner approval. A pipe bursts and the repair costs $450. The manager hires a plumber immediately. Has the manager acted properly?
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