Property Management
In South Carolina, a property management company that holds security deposits in its general operating account is:
AFollowing standard industry practice
BCommingling funds, which violates SC license law✓ Correct
COperating under the small escrow exemption
DActing appropriately if they maintain adequate records
Explanation
Commingling security deposits (client funds) with the management company's operating funds violates SC license law. Security deposits must be held in separate, designated trust accounts.
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