Property ManagementIntermediateAlabama Exam

A property manager receives a security deposit from a new tenant in Alabama. The deposit must be:

ADeposited in the property manager's operating account
BHeld in a separate trust accountCorrect
CForwarded to the property owner within 5 days
DUsed immediately for property maintenance

Why Held in a separate trust account Is Correct

Answer B: Held in a separate trust account

Security deposits must be held in a separate trust account and not commingled with operating funds. This protects the tenant's deposit until it is lawfully returned or applied to damages.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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