Property Management
Mississippi's security deposit rules for residential rentals require that deposits be:
ADeposited into the property manager's personal account
BHeld in a separate trust or escrow account and not commingled with operating funds✓ Correct
CApplied to the last month's rent automatically
DReturned only if the tenant provides 60 days' notice
Explanation
Security deposits for residential rentals must be held in a separate trust or escrow account and not commingled with the property manager's or owner's personal funds. Proper accounting and timely return are required by law.
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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.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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