Property Management

A property manager collects $5,000 in rents. Under California law, these funds must be:

ADeposited into the property manager's personal checking account
BHeld in a trust account separate from the manager's own funds✓ Correct
CImmediately forwarded to the owner with no record required
DDeposited in any federally insured account the manager chooses

Explanation

DRE regulations require that all funds received on behalf of others be deposited into a separate trust account. Commingling client funds with personal funds is a violation that can result in license suspension or revocation.

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