Property Management
A Washington property management company manages units in multiple buildings. Trust account funds from different properties should be:
AKept separate in individual accounts for each property
BCommingled in a single trust account with proper accounting records✓ Correct
CDeposited in the property manager's personal checking account for convenience
DHeld in cash on the business premises
Explanation
Washington allows a property management firm to maintain one trust account for multiple managed properties, provided accurate records are kept for each property. Commingling client funds with the manager's own business or personal funds is prohibited.
People Also Study
Related Washington Questions
- A Washington property manager who manages properties for multiple owners must keep each owner's funds:Property Management
- In Washington, a property manager who manages 10 or more residential units should have which type of insurance to protect against errors in property management?Property Management
- A Washington managing broker must maintain trust account records for a minimum of:Washington License Law
- A Washington real estate broker is found to have commingled client trust funds with their personal funds. The DOL may:Washington License Law
- A Washington real estate firm has a buyer client looking for a rental investment property. The firm also manages properties for a property owner who is looking to sell. If the firm represents both buyer and seller, Washington law requires:Agency
- A Washington property management company discovers an employee has been embezzling trust account funds. The designated broker should immediately:Property Management
- In Washington, a property manager's trust account must be:Property Management
- In Washington, a property manager who shows different units to prospective tenants based on their race is committing:Fair Housing
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
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →