Arizona License Law

An Arizona real estate licensee who acts as a property manager must ensure that trust accounts used for security deposits are:

AHeld in the broker's personal account for convenience
BMaintained in a federally insured financial institution in Arizona, separate from the broker's operating funds✓ Correct
CInvested in short-term securities to earn interest for the broker
DHeld by the property owner directly

Explanation

Arizona law requires property management trust accounts to be maintained in a federally insured Arizona financial institution and kept completely separate from the broker's own funds (no commingling). Security deposits are client funds and must be protected accordingly.

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