Property Management
A Washington residential property manager receives a security deposit for $2,800 at the beginning of a tenancy. The manager must deposit these funds into:
ATheir personal savings account
BA trust account separate from the manager's operating funds✓ Correct
CA dedicated money market account earning maximum interest for the owner
DThe property owner's personal account
Explanation
Security deposits and other client funds must be held in a separate trust account, maintained apart from the property manager's personal and business operating funds. Commingling is a serious violation under Washington license law.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
State-Specific Concepts
Trust Account RulesLicense Law
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