Property Management

An Indiana property manager who co-mingles security deposits with operating funds is:

APermitted if the owner approves
BViolating Indiana law requiring trust accounts to be segregated from operating accounts✓ Correct
CRequired to do so for tax purposes
DPermitted for deposits under $1,000

Explanation

Indiana law requires security deposits and other client funds to be held in segregated trust accounts, separate from the broker's or manager's operating funds. Commingling is a serious violation.

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