Property Management
In Maine, a property management company that manages properties for multiple owners must maintain:
AOne combined escrow account for all clients
BSeparate escrow accounts for each property owner's funds✓ Correct
CNo escrow accounts if the manager is a licensed broker
DA single trust account tracked by owner in the records
Explanation
Maine license law requires that client funds be properly segregated. Best practice is to maintain separate trust accounts or carefully track funds by owner within a master trust account to prevent commingling.
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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.
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.
State-Specific Concepts
Trust Account RulesLicense Law
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