Property Management

A Texas property manager collects rent and security deposits on behalf of the owner. These funds must be kept:

AIn the property manager's personal account for convenience
BIn a separate trust or escrow account segregated from the manager's personal and business funds✓ Correct
CIn the owner's personal account
DIn a savings account in the owner's name only

Explanation

TREC rules and Texas Occupations Code require that brokers and property managers maintain client funds (rent, security deposits, etc.) in a separate trust account apart from their personal and operating funds. Commingling client funds with personal funds is a serious violation that can result in license revocation.

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