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:
Why Held in a trust account separate from the manager's personal and operating funds Is Correct
Answer C: Held in a trust account separate from the manager's personal and operating funds
Exam Tip: Property Management
Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.
Key Property Management Terms in This Question
People Also Study
Related North Carolina Questions
- A NC broker who deposits a client's earnest money check into their personal account instead of a trust account has committed:North Carolina License Law
- An 'escrow account' (impound account) maintained by a NC mortgage lender collects monthly deposits for:Finance
- An NC property manager who collects rents and maintenance deposits for managed properties must keep trust account records for a minimum of how many years?Property Management
- Under NC law, a broker property manager who holds a tenant's security deposit in a trust account must:Property Management
- In North Carolina, trust account funds (earnest money) must be deposited within:Escrow & Title
- In North Carolina, a property manager who collects rent and manages property for others must hold:Property Management
- A property manager collected $42,000 in rent last month and charges a 7% management fee. What is the fee?Real Estate Math
- A real estate broker in North Carolina who receives earnest money must deposit it into a trust account within:Agency
Key Terms to Know
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
LienA 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.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
State-Specific Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →