Property Management
Commingling of funds by a property manager in Nevada means:
AInvesting client funds in high-yield accounts
BMixing client (trust) funds with the manager's personal or business funds✓ Correct
CDistributing income to multiple owners from one account
DCombining rents from multiple properties into one account
Explanation
Commingling — mixing client (trust account) funds with the manager's own money — is prohibited under NRS 645 and is grounds for license revocation. Client funds must be kept in a separate trust account.
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Key Terms to Know
Lien
A 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.
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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