Property Management
A Massachusetts commercial property manager who collects common area maintenance (CAM) charges from tenants must:
ADistribute all CAM funds to tenants annually
BHold CAM funds in a separate account and apply them to actual operating expenses✓ Correct
CReport CAM collections to the Board of Registration
DInvest CAM funds in money market accounts
Explanation
CAM charges collected from tenants must be applied to actual operating expenses for the property's common areas. Property managers must maintain accurate records and, under most commercial leases, provide annual CAM reconciliation statements to tenants.
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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.
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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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