Property Management

A Kentucky property manager who fails to place a security deposit in a separate trust account may be guilty of:

AConversion and commingling✓ Correct
BOnly technical commingling with no real harm
CA minor paperwork violation
DNo violation if the funds are eventually returned

Explanation

Failing to maintain security deposits in a separate trust account constitutes commingling (mixing client funds with personal/business funds), which is a serious violation of Kentucky real estate license law.

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