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National curriculum lesson 105 · Property Management

Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements

The lease and landlord-tenant law allocate possession, rent, maintenance, entry, notice, renewal, default, and termination rights. Security deposits, rents, owner reserves, and other money must be handled according to their ownership and applicable trust or escrow rules. Managers maintain property-level ledgers, reconcile accounts, disburse only with authority, and never use self-help eviction outside lawful process.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

The lease and landlord-tenant law allocate possession, rent, maintenance, entry, notice, renewal, default, and termination rights. Security deposits, rents, owner reserves, and other money must be handled according to their ownership and applicable trust or escrow rules. Managers maintain property-level ledgers, reconcile accounts, disburse only with authority, and never use self-help eviction outside lawful process.
Official syllabus mapping for Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements
Roadmap lesson105 of 500
Official syllabus topicLandlord-Tenant Rights, Funds, Trust Accounts, and Disbursements
Official PSI areaProperty Management
Published area weight3% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Possession and duties

The landlord provides the promised possessory interest and fulfills nonwaivable duties. The tenant pays rent, uses the property lawfully, avoids damage, and follows enforceable lease terms.

Deposits and accounting

Deposit collection, location, notice, deductions, inspection, itemization, and return are governed by state law and the lease. Records should always show who owns each dollar.

Trust-account controls

Segregation, timely deposit, authorized disbursement, property ledgers, bank reconciliation, supporting documents, and broker oversight protect other people's money.

Default and lawful process

Late payment or other breach requires the notices and legal remedies allowed by the lease and law. Lockouts, utility shutoffs, or removal of possessions can be unlawful self-help.

Decision rule

Classify the money first, then follow the lease, management agreement, statute, and broker trust-account procedure.

Georgia-specific distinction

Georgia security-deposit rules include particular inspection, list, holding, and return requirements, with statutory exceptions and consequences. Brokerage trust funds are also governed by Georgia Real Estate Commission rules, so managers must follow both legal layers where applicable.

Worked example

Scenario. A manager receives tenant rent belonging to the owner and deposits it into the manager's personal checking account until bills are due.

Reason it through. The manager has commingled other people's money with personal funds and bypassed required accounting and broker controls.

Answer. The handling is improper; funds belong in the authorized account with ledger and reconciliation records.

Common exam traps

  • Commingling
  • Disbursing disputed funds without authority
  • Using self-help eviction
  • Assuming every deposit rule has no exception

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

What is commingling?

  1. A. Mixing client funds with personal or operating funds improperly
  2. B. Reconciling a ledger
  3. C. Returning a deposit
  4. D. Prorating rent
Show answer and explanation →

Answer: A. Mixing client funds with personal or operating funds improperly

Other people's money must be segregated as required rather than mixed with the manager's funds.

Question 2

May a manager change locks solely to force out a defaulting residential tenant?

  1. A. Always
  2. B. Not without lawful process
  3. C. Only on weekends
  4. D. Only if rent is one day late
Show answer and explanation →

Answer: B. Not without lawful process

Eviction and dispossession require the procedures established by law.

Question 3

What should a property ledger show?

  1. A. Receipts, charges, disbursements, and balance for that property or owner
  2. B. Only total company profit
  3. C. Only deposits
  4. D. Only vendor names
Show answer and explanation →

Answer: A. Receipts, charges, disbursements, and balance for that property or owner

Property-level accountability requires a complete transaction history and running balance.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Deed Types and Requirements for Effective Transfer. Continue to roadmap lesson 106 and build on this decision rule.

Return to the Property Management hub to see every official branch and the complete lesson sequence for this content area.

Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements on the Georgia real estate exam?

Yes. It belongs to PSI's Property Management content area, which is 3% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements?

Classify the money first, then follow the lease, management agreement, statute, and broker trust-account procedure.

What Georgia-specific distinction should I remember?

Georgia security-deposit rules include particular inspection, list, holding, and return requirements, with statutory exceptions and consequences. Brokerage trust funds are also governed by Georgia Real Estate Commission rules, so managers must follow both legal layers where applicable.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.