Property Management
In South Dakota, a property manager who holds a real estate broker license and collects management fees for managing properties must:
AApply those fees to trust accounts✓ Correct
BPay all fees to the property owners and collect separately
CReport management fees through a licensed accounting firm
DMaintain trust accounts only for the management fees, separate from rent proceeds
Explanation
Management fees collected on behalf of owners may in some circumstances need to be processed through trust accounts depending on how they are collected and disbursed. More importantly, all client funds (rents and deposits) must be held in trust accounts separate from the manager's personal funds.
Related South Dakota Property Management Questions
- Which of the following describes a South Dakota ground lease?
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- A South Dakota property manager who collects a management fee based on collected rents has what type of compensation arrangement?
- A South Dakota property manager receives a security deposit. This deposit must be:
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