Property Management
Which of the following must a Delaware property manager always maintain separately from the owner's account?
AThe manager's personal investment account
BTenant security deposits and rental trust funds✓ Correct
CThe manager's business operating account
DThe owner's personal tax records
Explanation
Delaware law requires property managers to maintain tenant security deposits and other client funds in separate trust or escrow accounts, preventing commingling with the manager's own or the owner's general funds.
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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.
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