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 rents and security deposits. What is the maximum amount of personal funds the broker may keep in this property management escrow account to cover bank service charges?
- A$5,000
- B$10,000
- C$500
- D$1,000
Show answer & explanationAnswer & explanation
Correct answer: A. $5,000
For a property management escrow account, a Florida broker is allowed to keep up to $5,000 of their own personal funds to cover bank service charges and maintain the account. This differs from a sales escrow account, which has a lower limit.
Why the other options are wrong
- B. This amount is too high and exceeds the legal limit for personal funds in any escrow account.
- C. This amount is too low; the limit for property management escrow is higher than for sales escrow.
- D. This is the limit for a general sales escrow account, not a property management account.
Broker Escrow Account Funds (Property Management)
Florida law specifies the maximum amount of a broker's personal funds that may be kept in a property management escrow account to cover bank service charges and maintain the account.
- Maximum $5,000 of broker's personal funds.
- Funds are for bank service charges and account maintenance only.
- Distinct from sales escrow account limits ($1,000).
Memory trick: ESCROW BUFFER: Property Management gets FIVE THOUSAND, Sales gets ONE.