Property Management
In South Dakota, a property manager's primary obligation when managing trust funds is to:
AInvest trust funds in interest-bearing accounts for maximum return
BMaintain trust funds separately from personal funds and disburse them only as authorized✓ Correct
CTransfer trust funds to the property owner immediately upon receipt
DUse trust funds for property maintenance when needed
Explanation
The property manager's primary trust fund obligation is to maintain client funds in a separate trust account, distinct from personal funds (no commingling), and to disburse them only as authorized by the principal or as required by the transaction.
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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 Rules
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