Property Management
A Vermont property manager who collects rents and security deposits on behalf of property owners must hold these funds in:
AThe property manager's personal savings account
BA separate trust or escrow account maintained in accordance with Vermont license law✓ Correct
CThe owner's personal bank account
DA federal reserve account
Explanation
Vermont license law requires property managers to hold all client funds (rents, deposits, maintenance reserves) in separate, properly maintained trust or escrow accounts. Commingling client funds with personal or business funds is a violation that can result in license revocation.
People Also Study
Related Vermont Questions
- A Vermont property manager who collects rent on behalf of property owners must:Property Management
- A Vermont broker who commingles client trust funds with their own operating account is:Escrow & Title
- Vermont's VREC requires that brokerage trust accounts be held at:Vermont License Law
- A Vermont property manager who maintains multiple client accounts must keep them:Property Management
- A Vermont property manager who collects 'first month's rent, last month's rent, and security deposit' at lease signing is collecting a total of how many months' equivalent?Property Management
- Under Vermont license law, a real estate broker must maintain trust account records for at least:Vermont License Law
- In Vermont, which of the following activities requires a real estate license?Vermont License Law
- Vermont requires a landlord to return a residential security deposit within how many days after the tenant vacates?Property Management
Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
LienA 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.
State-Specific Concepts
License Law
Study This Topic
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →