Property Management
A Colorado property manager who discovers that their property management trust account was incorrectly debited due to a bank error must:
AA. Correct the error only at the end of the month
BB. Promptly notify the bank, document the error, and reconcile the trust account — maintaining accurate records of all account activity✓ Correct
CC. Only notify the property owners affected
DD. Report the error to the Colorado Real Estate Commission immediately
Explanation
Any discrepancy in a property management trust account must be identified and corrected promptly. The manager should notify the bank immediately, document the error and correction, and ensure that trust account records are accurate.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
State-Specific Concepts
Trust Account Rules
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