Property Management
A property manager who is licensed as a real estate broker must place all trust funds in:
AA pooled client trust account at any financial institution
BA federally insured account maintained separate from the manager's personal and business funds✓ Correct
CAn account approved by IDFPR before any funds are deposited
DAn account in the property owner's name only
Explanation
Illinois-licensed property managers must maintain client funds (rents, deposits) in a federally insured trust account that is separate from the manager's personal and business funds. This prevents commingling and protects client assets.
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Earnest MoneyA 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.
Math Concepts
State-Specific Concepts
Trust Account Rules
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