Property Management
A Missouri property manager's trust account for tenant security deposits must:
ABe commingled with the management company's operating funds
BBe maintained separately from operating funds✓ Correct
CEarn interest for the management company
DBe held by MREC
Explanation
Security deposits must be held in a separate trust or escrow account, not commingled with the property manager's or owner's operating funds.
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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.
State-Specific Concepts
Trust Account Rules
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