Property Management

A NH property management company receives the monthly rent payment and holds it for 45 days before remitting to the owner. This practice:

AIs acceptable industry practice
BMay constitute commingling and misuse of owner funds, violating fiduciary duties✓ Correct
CIs acceptable if the company earns interest for the owner
DIs only a problem if the owner specifically objects

Explanation

Unnecessarily holding owner funds constitutes a breach of fiduciary duty and may be considered commingling or conversion of client funds. Property managers must remit owner funds promptly per the management agreement. Holding rent for 45 days without authorization is a serious violation.

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