# Trust account

A term used when buying property management.

The regulated account holding client rents and deposits, separate from the company's own money.

This is a licensing line as much as an accounting one. Commingling or a shortfall is a serious violation that can cost the license, which is the business, so the reconciliation is mandatory diligence rather than a formality. Ask for the last twelve monthly reconciliations and check the balance against what the leases say is held. A gap is not always fraud, it is often sloppiness, and both transfer to you.

Part of: Buying a Property Management Company (https://searchspheresource.com/guides/buying-a-property-management-company)

Source: https://searchspheresource.com/guides/buying-a-property-management-company/terms/trust-account
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt