A broker may disburse funds from a trust account based on:
Why Written instructions from all parties or a court order Is Correct
Answer B: Written instructions from all parties or a court order
Exam Tip: Trust Funds
Trust fund questions test the rules for handling client money. Know the deadlines for depositing trust funds, what constitutes commingling vs. conversion, and the penalties for violations.
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Related Alabama Questions
- An Alabama broker may make disbursements from the trust account based on:Trust Funds
- Which of the following is NOT an acceptable reason for a broker to withdraw funds from an Alabama trust account?Trust Funds
- Conversion of client funds in a trust account occurs when a broker:Trust Funds
- Which of the following would be considered an acceptable reason to withdraw funds from a trust account?Trust Funds
Key Terms to Know
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
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