Arizona License LawIntermediateArizona Exam
A real estate licensee in Arizona who provides property management services and holds tenant security deposits must maintain those deposits in:
AThe broker's operating account for convenience
BA separate trust or escrow account, not commingled with operating fundsCorrect
CA personal savings account
DAn account the landlord controls directly
Why A separate trust or escrow account, not commingled with operating funds Is Correct
Answer B: A separate trust or escrow account, not commingled with operating funds
Security deposits held by a property manager must be kept in a separate trust account, never commingled with the broker's operating funds or the property manager's personal funds. Commingling is a serious violation.
Key Arizona License Law Terms in This Question
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
Trust Account Rules
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