Property Management
What is the primary purpose of a property management 'trust account' in Rhode Island?
ATo generate investment income for the property manager
BTo separate client funds (rents, deposits) from the property manager's own funds to protect clients✓ Correct
CTo pay the property manager's operating expenses
DTo fund capital improvements to managed properties
Explanation
A trust account keeps client funds (rent receipts, security deposits) completely separate from the property manager's personal or business funds. This protects clients from misappropriation and is required by Rhode Island license law.
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