Trust Funds
A broker in Alabama may maintain a single trust account for multiple clients provided:
ATotal funds do not exceed $50,000
BThey maintain separate ledger records for each client's funds✓ Correct
CAREC approves the arrangement annually
DAll clients consent in writing
Explanation
A broker may hold funds for multiple clients in one trust account as long as they maintain separate, detailed ledger records clearly tracking each client's funds individually.
Related Alabama Trust Funds Questions
- Which of the following BEST describes 'commingling' of funds?
- An escrow account for a real estate transaction in Alabama typically holds which of the following funds?
- If an Alabama broker has a dispute about the disbursement of earnest money and cannot resolve it with the parties, the broker should:
- If a listing expires without a sale, earnest money that was deposited should be:
- In Alabama, a qualifying broker who manages property for owners must maintain:
- When a real estate transaction closes, how should the earnest money be handled?
- A broker may disburse funds from a trust account based on:
- An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?
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