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Property Management Licensing Practice Exam · Question

In Ontario, what type of trust account is typically used by property managers to hold tenant security deposits?

Under the Residential Tenancies Act, 2006, landlords in Ontario are required to pay interest on security deposits at the rate set annually by the government. Th

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Question: In Ontario, what type of trust account is typically used by property managers to hold tenant security deposits?

Answer options:

  • Operating Account
  • General Account ✅ Interest-Bearing Trust Account
  • Escrow Account

Correct answer: Interest-Bearing Trust Account

Explanation: Under the Residential Tenancies Act, 2006, landlords in Ontario are required to pay interest on security deposits at the rate set annually by the government. This necessitates holding deposits in an interest-bearing trust account.

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