Property Management
A property manager in NC collects first month's rent, last month's rent, and a security deposit at lease signing. Under NC law, these funds should be:
ADeposited in the manager's general operating account
BPaid immediately to the property owner
CHeld in a trust account separate from the manager's personal and operating funds✓ Correct
DInvested in interest-bearing instruments for the manager's benefit
Explanation
NC General Statutes and NCREC rules require that brokers hold all client funds — including rents and security deposits — in a properly maintained trust (escrow) account, separate from the broker's own money.
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