Property Management
A North Dakota property manager collecting rent for multiple properties must:
ADeposit all rents into the manager's personal account
BMaintain separate trust accounts for client funds, segregated from the manager's operating funds✓ Correct
CHold cash rents in a safe indefinitely
DCombine all owner funds into one account for efficiency
Explanation
Property managers must maintain trust accounts for client (owner) funds that are completely separate from the manager's own business and personal funds. Commingling client funds with personal funds violates North Dakota license law.
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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 RulesLicense Law
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