Property ManagementIntermediateColorado Exam

In Colorado, a property manager who collects security deposits must hold them in:

ATheir personal bank account for convenience
BA separate trust account distinct from operating fundsCorrect
CThe property owner's personal account
DA savings account earning the highest interest for the manager

Why A separate trust account distinct from operating funds Is Correct

Answer B: A separate trust account distinct from operating funds

Security deposits in Colorado must be held in a separate trust account. Commingling security deposits with operating funds is prohibited and constitutes a violation of Colorado law.

Exam Tip: Property Management

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