Property Management
A Delaware property manager collects security deposits from tenants. Under Delaware law, where must these funds be held?
AIn the property manager's personal bank account for safekeeping
BIn a separate escrow or trust account maintained by the property manager, segregated from operating funds✓ Correct
CIn the owner's personal savings account
DIn the Delaware Real Estate Commission's escrow account
Explanation
Under Delaware law, security deposits and tenant funds must be held in a separate escrow or trust account, kept segregated from the property manager's own funds and the owner's operating funds. Commingling tenant deposits with other funds is a violation that can result in license revocation.
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