Property Management
A Maine property manager who collects advance rent and security deposits before a tenant moves in must:
ADeposit the funds in the owner's personal account
BPlace the funds in a separate trust account and keep accurate records✓ Correct
CSend the funds to the MREC for safekeeping
DInvest the funds in a money market account for the owner's benefit
Explanation
Maine law requires advance rent and security deposits collected from tenants to be held in a separate trust account, kept distinct from the property manager's or owner's personal funds.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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.
State-Specific Concepts
Trust Account Rules
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