Trust Funds
An Alabama broker may deposit their own funds into a trust account in which scenario?
ATo cover a shortfall caused by a client's bounced check
BUp to $200 to cover normal service charges and bank fees✓ Correct
CAt any time if the amount is less than $500
DOnly with written permission from AREC
Explanation
Alabama permits brokers to keep a nominal amount of their own funds (up to a limited amount) in the trust account solely to cover bank service charges and fees.
Related Alabama Trust Funds Questions
- An Alabama broker may make disbursements from the trust account based on:
- Which of the following is the correct treatment of interest earned on an Alabama broker's trust account?
- Interest earned on Alabama broker trust accounts typically:
- When there is a dispute over earnest money between a buyer and seller in Alabama, the broker should:
- Conversion of trust funds in Alabama means:
- In Alabama, who is ultimately responsible for ensuring that client funds are properly maintained in the trust account?
- Under AREC rules, how quickly must a broker deposit earnest money or other trust funds after receipt?
- When a buyer's offer is rejected by the seller, the earnest money should be:
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