Arkansas Real Estate Practice Exam

What must be provided for any cash funds received under a property management agreement?

1. A legible written receipt

2. An electronic receipt

3. A verbal confirmation

4. A bank deposit slip

The correct answer is: A legible written receipt

Cash funds received under a property management agreement must be provided with a legible written receipt. This is because a written receipt serves as a tangible proof of transaction that both parties can refer to in case of discrepancies. An electronic receipt may not be sufficient as it can easily be altered or misplaced. A verbal confirmation is also not enough as it does not provide concrete evidence of the transaction. Similarly, a bank deposit slip may not be enough as it only indicates the deposit being made, but not specifically for the purpose of the property management agreement. Therefore, a legible written receipt is the most important and reliable form of documentation for cash funds received under a property management agreement.