Property Management
In Illinois, a residential property manager who is also a licensed broker must maintain client funds in which type of account?
AA regular business checking account at a licensed bank
BAn interest-bearing savings account in the property manager's personal name
CA dedicated trust account that is separate from the manager's own funds✓ Correct
DA state-chartered account regulated by the Illinois State Treasurer
Explanation
Illinois license law requires licensed brokers acting as property managers to maintain client funds (rents, deposits) in a dedicated trust account that is completely separate from the manager's personal and business operating funds. This prevents commingling and protects client assets from the manager's creditors.
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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 RulesLicense Law
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