Trust Funds
A property manager receives a security deposit from a tenant. Under California Civil Code, residential security deposits may NOT exceed:
AOne month's rent for furnished units
BTwo months' rent for unfurnished units and three months' rent for furnished units✓ Correct
CThree months' rent for all units
DAny amount agreed upon by the parties
Explanation
California Civil Code §1950.5 caps residential security deposits at two months' rent for unfurnished units and three months' rent for furnished units. The landlord must return the deposit (less lawful deductions) within 21 days of move-out.
Related California Trust Funds Questions
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- What is 'impound' or 'reserve' accounts in real estate lending?
- A broker who violates trust fund regulations is subject to which of the following penalties?
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- A broker's trust account cannot be an interest-bearing account unless:
- Interest earned on funds held in a broker's trust account generally belongs to:
- What must a broker do when they receive a buyer's earnest money deposit check with instructions to hold it uncashed pending acceptance?
- A DRE audit of a broker's trust account reveals that the balance of individual client ledgers is less than the total bank balance. This condition is called:
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