Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresHard
A Florida real estate broker is managing a commercial property and utilizes a separate property management escrow account for rent and security deposits. What is the maximum amount of personal or brokerage funds the broker is permitted to keep in this specific property management escrow account?
- ANo personal or brokerage funds are allowed.
- B$10,000
- C$5,000
- D$1,000
Show answer & explanationAnswer & explanation
Correct answer: C. $5,000
For a property management escrow account, a broker is permitted to place up to $5,000 of their own personal or brokerage funds to cover service charges and maintain the account. For sales escrow accounts, the limit is $1,000.
Why the other options are wrong
- A. A small amount is allowed to cover bank service charges and prevent the account from being overdrawn.
- B. This amount exceeds the permissible limit for any type of escrow account.
- D. This is the limit for a sales escrow account, not a property management escrow account.
Broker Escrow Account Funds (Property Management)
A Florida real estate broker may keep up to $5,000 of their own personal or brokerage funds in a property management escrow account to cover operating expenses and service charges.
- Limit is $5,000 for property management.
- Limit is $1,000 for sales escrow.
- Funds are for service charges, not commingling.
Memory trick: Property management needs more buffer; sales needs less.