Trust Funds
An Alabama broker receives rental income on behalf of a property owner. These funds must be deposited into:
AThe broker's operating account
BA trust account separate from the broker's funds✓ Correct
CThe property owner's personal bank account directly
DA special AREC-monitored account
Explanation
All client funds, including rental income collected on behalf of property owners, must be deposited into a trust account separate from the broker's own funds.
Related Alabama Trust Funds Questions
- Which of the following is the correct treatment of interest earned on an Alabama broker's trust account?
- Which of the following trust account activities would constitute commingling?
- Which of the following BEST describes 'commingling' of funds?
- 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 NOT an acceptable reason for a broker to withdraw funds from an Alabama trust account?
- If a listing expires without a sale, earnest money that was deposited should be:
- A property manager collects monthly rents of $50,000 on behalf of property owners. These funds must be:
- An escrow account for a real estate transaction in Alabama typically holds which of the following funds?
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