Can a property management broker combine the security deposits for multiple tenants in a single trust account?
Why Yes, provided the broker maintains separate ledger records for each tenant's deposit Is Correct
Answer B: Yes, provided the broker maintains separate ledger records for each tenant's deposit
Exam Tip: Trust Funds
Trust fund questions test the rules for handling client money. Know the deadlines for depositing trust funds, what constitutes commingling vs. conversion, and the penalties for violations.
Key Trust Funds Terms in This Question
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- Which of the following records is a broker required to maintain for the trust fund account?Trust Funds
- A broker is required to maintain a columnar record (trust fund ledger) for the trust account. The purpose of this record is to:Trust Funds
- What records must a California broker maintain for their trust account?Trust Funds
- A broker acting as a property manager must maintain trust account records for how long?DRE & Licensing
- A broker must maintain a separate trust account ledger for each:Trust Funds
- Under California law, a real estate broker who manages property for clients must maintain a separate trust account for client funds. Mixing client funds with the broker's personal funds is called:Agency
- Under California law, the maximum amount a broker may keep of their own funds in a trust account (to cover bank service charges) is:DRE & Licensing
- What is the purpose of a property management trust account reconciliation?Property Management
Key Terms to Know
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.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
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