Property Management
What is the purpose of a property management trust account reconciliation?
ATo calculate the property manager's commission
BTo verify that the trust account balance matches all individual client ledger balances✓ Correct
CTo report rental income to the IRS
DTo determine whether a property needs maintenance
Explanation
Reconciliation ensures the total of all individual client ledger balances equals the trust account bank balance, detecting any shortages, errors, or misappropriation of funds as required by DRE regulations.
Related California Property Management Questions
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