Trust Funds
A broker may disburse funds from a trust account based on:
ATheir own judgment about the outcome of the transaction
BWritten instructions from all parties or a court order✓ Correct
CA verbal agreement with the buyer
DThe listing agent's recommendation
Explanation
Trust account disbursements should be made based on written authorization from all parties to the transaction, or pursuant to a court order or arbitration award.
Related Alabama Trust Funds Questions
- An Alabama broker may deposit their own funds into a trust account in which scenario?
- Which of the following is NOT an acceptable reason for a broker to withdraw funds from an Alabama trust account?
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?
- Which of the following is the best description of a broker's fiduciary duty regarding trust funds?
- AREC has the authority to audit a broker's trust account:
- Which of the following is NOT a permissible use of an Alabama broker's trust account?
- In Alabama, an earnest money deposit held by a real estate broker must be:
- If a buyer's offer is accepted by the seller and the buyer's check for earnest money is returned by the bank as NSF (non-sufficient funds), the broker should:
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