AREC Arkansas Broker Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

As a property manager, where should rents be deposited when received on a 25 Unit Complex?

be put in office safe until all are collected.

be put in broker's trust account.

Depositing rents into the broker's trust account is the appropriate action for a property manager handling funds on behalf of property owners. A trust account is specifically designed to hold clients’ funds in a manner that separates them from the broker’s operational funds, ensuring compliance with legal standards and providing an added layer of security for tenants' and owners' money.

This practice is important for a few reasons. Firstly, using a trust account maintains clear accounting practices, which is crucial for managing income from multiple units and ensuring that all funds can be tracked accurately. Secondly, it protects the interests of the property owners by ensuring that their revenue is properly safeguarded. This helps in avoiding any potential commingling of personal funds with client funds, which could lead to legal issues or financial mismanagement.

The other options, such as putting rents in an office safe or an operating account, do not provide the same level of security and don't comply with best practices or legal requirements for handling client funds. A non-interest bearing account may also not offer the necessary protection or compliance needed, making the use of a trust account the most responsible and legally sound choice for property managers.

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be put in a non-interest bearing account.

be put in broker's operating account.

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