Property Management
A Massachusetts property manager who handles multiple properties must maintain separate escrow accounts for each property's funds:
ATrue—a separate account is required for each property
BFalse—one trust account may hold funds for multiple properties, as long as records clearly identify each property's funds✓ Correct
CTrue—required only for properties with more than 10 units
DFalse—all client funds may be commingled in one account
Explanation
Massachusetts does not require a separate bank account for each property—one trust/escrow account may hold funds from multiple properties, provided that the property manager maintains detailed records identifying which funds belong to each property owner.
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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 Rules
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