Virginia Real Estate Exam Practice Question
The Virginia Residential Landlord and Tenant Act specifies how a landlord must handle rental payments. What is the proper handling of the funds if the tenant prepays?
Correct Answer: D
Rationale: Under the Virginia Residential Landlord and Tenant Act, prepaid rent must be handled with care to protect tenant rights. Placing the funds in an escrow account at a federally insured depository ensures that they are secure and designated solely for rent, aligning with legal requirements.
Option A is incorrect as keeping funds on-site lacks security and does not comply with regulations. Option B is inappropriate because using a regular business account risks mixing funds and mismanagement. Option C is misleading, as it allows for potential misuse of tenant funds, violating the intent of the law.
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