Property Management

A property manager who handles security deposits must maintain them in:

AThe property management firm's general operating account
BA separate escrow or trust account clearly designated for security deposits✓ Correct
CA personal savings account earning the highest interest rate
DAny FDIC-insured account regardless of commingling

Explanation

Security deposits must be held in a separate escrow or trust account, not commingled with operating funds. This protects tenants' deposits and is required under Tennessee's URLTA.

Related Tennessee Property Management Questions

Practice More Tennessee Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Tennessee Quiz →