Property Management

A Mississippi property manager collects advance rent and security deposits from a new tenant. Under Mississippi law, how must these funds be handled?

ADeposited into the property manager's operating account
BHeld in a trust or escrow account separate from the property manager's own funds✓ Correct
CImmediately forwarded to the property owner
DHeld by the manager until the lease ends

Explanation

Tenant security deposits and advance rent in Mississippi must be held in a trust or escrow account separate from the property manager's or broker's operating funds. Commingling these funds with personal or business funds is a serious violation of Mississippi license law.

Related Mississippi Property Management Questions

Practice More Mississippi Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Mississippi Quiz →