Property Management
A Pennsylvania property manager collects $15,000 in monthly rents. Which of the following correctly describes the fiduciary requirement for handling these funds?
AThe property manager may commingle client funds with personal funds if records are kept
BAll collected rents must be deposited into a separate, identifiable trust or escrow account✓ Correct
CThe property manager must hold all cash in a physical safe at their office
DRent may be held in the property manager's operating account if individually documented
Explanation
Pennsylvania real estate license law requires licensees to deposit all client funds — rents, security deposits, earnest money — into a separate trust or escrow account completely segregated from personal and operating funds. Commingling client funds with personal funds is a serious violation of RELRA and fiduciary duty that can result in license suspension or revocation, civil liability, and criminal charges.
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