Property management agreements and accounts

Question 1

Illegally mixing personal funds with money held in trust on behalf of the client

Answer 1

Commingling

Question 2

A written agreement that governs the relationship between a property owner/investor and the property manager in outlines the duties of the property manager

Answer 2

Property management agreement

Question 3

A checking account used to deposit property management money. Must be reconciled monthly and financial records retained for three years

Answer 3

Property management trust account

Question 4

A bank account, separate from a real estate broker’s personal and business accounts, used to segregate trust funds from the broker’s own funds

Answer 4

Trust account