A property manager collects monthly rents of $50,000 on behalf of property owners. These funds must be:
Why Deposited into a separate trust account and not commingled with the manager's own funds Is Correct
Answer B: Deposited into a separate trust account and not commingled with the manager's own funds
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.
Key Trust Funds Terms in This Question
People Also Study
Related Alabama Questions
- In Alabama, the term for a broker's obligation to keep client funds separate from personal or business operating funds is:Trust Funds
- A property manager who collects rents and maintains records on behalf of an owner acts as the owner's:Property Management
- Conversion of client funds in a trust account occurs when a broker:Trust Funds
- Alabama regulations require brokers to maintain trust account records for at least:Trust Funds
- If a broker fails to maintain proper trust account records, AREC may:Trust Funds
- A property manager in Alabama who collects rents and manages properties for others must hold:Property Management
- In Alabama, a broker's trust account records must be maintained for a minimum of:Alabama License Law
- In Alabama, a property manager who negotiates leases and collects rent on behalf of an owner typically must have:Property Management
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →