Property Management
A property manager collects a security deposit of $1,500 from a new tenant. Under Illinois law, this money must be:
ADeposited into the property manager's personal savings account
BGiven to the property owner immediately
CHeld in a separate escrow or trust account, not commingled with operating funds✓ Correct
DInvested in a money market fund by the managing broker
Explanation
Illinois law requires security deposits to be held in a separate trust or escrow account, separate from the property manager's and owner's operating funds. Commingling security deposits with other funds is a violation of fiduciary duty and Illinois law.
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