Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate broker is managing a commercial property and utilizes a separate property management escrow account. If the broker wishes to place their own funds into this account to cover operating expenses, what is the maximum amount of personal funds they are permitted to keep in this specific account, according to Florida law?
- A$5,000.
- B$2,500.
- C$1,000.
- D$10,000.
Show answer & explanationAnswer & explanation
Correct answer: A. $5,000.
Florida law permits a broker to keep up to $5,000 of their own personal funds in a property management escrow account to cover operating expenses and avoid commingling. This differs from the $1,000 limit for a sales escrow account.
Why the other options are wrong
- B. This amount is not a recognized legal limit for broker funds in any escrow account.
- C. This is the limit for a sales escrow account, not a property management escrow account.
- D. This amount exceeds the legal limit for both sales and property management escrow accounts.
Broker Escrow Account Funds (Property Management)
The maximum amount of personal funds a Florida real estate broker can keep in a property management escrow account to cover operational expenses.
- Limit is $5,000 for property management escrow accounts.
- Limit is $1,000 for sales escrow accounts.
- Purpose is to avoid commingling and cover account operating costs.
Memory trick: Property Management: 'Five thousand' for the 'property' to keep it 'running'!