Property Management
Security deposits collected from tenants in Indiana must be:
ADeposited in the property manager's personal account
BKept in a separate trust or escrow account apart from operating funds✓ Correct
CRemitted to the Indiana Real Estate Commission
DInvested in stocks for the owner's benefit
Explanation
Indiana law requires security deposits to be held in a separate escrow or trust account, not commingled with operating funds, to protect tenant rights.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
State-Specific Concepts
Trust Account Rules
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