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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Related Topics & Key Terms
Key Terms:
Related Concepts
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
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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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A property manager hires an unlicensed contractor to save money on a roof repair. The contractor performs substandard work that leads to water damage in three units. What fiduciary duty has the manager most likely breached?