Property Management
A property manager who comingles tenant security deposits with operating funds in NC is subject to:
ANo liability if the deposits are eventually returned
BLicense disciplinary action by the NCREC and civil liability✓ Correct
COnly a small administrative fine
DCriminal charges only
Explanation
Commingling trust funds (security deposits or earnest money) with personal or operating funds is a serious violation of NC license law subject to NCREC disciplinary action and civil liability.
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