Trust Funds
A property manager collects monthly rents of $50,000 on behalf of property owners. These funds must be:
ADeposited in the property manager's personal savings account for security
BDeposited into a separate trust account and not commingled with the manager's own funds✓ Correct
CSent directly to the property owners without being deposited
DHeld in cash at the property manager's office
Explanation
All rents and other funds collected on behalf of property owners must be deposited into a separate trust (escrow) account. The property manager must maintain detailed ledger records and may not commingle client funds with personal or business funds.
Related Alabama Trust Funds Questions
- When a broker receives a post-dated check as earnest money, the best practice is to:
- In Alabama, an earnest money deposit held by a real estate broker must be:
- A broker may disburse funds from a trust account based on:
- When a buyer's offer is rejected by the seller, the earnest money should be:
- An Alabama broker receives security deposits from tenants managed under a property management agreement. These funds must be:
- If a broker fails to maintain proper trust account records, AREC may:
- Which of the following is permissible in an Alabama broker's trust account?
- In Alabama, a broker found guilty of conversion of trust funds may face which consequences?
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