Trust Funds
An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?
AOnly a civil fine of $100
BDisciplinary action including suspension or revocation of license✓ Correct
CRequired audit by the IRS
DMandatory retraining only
Explanation
Failure to maintain proper trust account records is a serious violation of Alabama license law that can result in suspension or revocation of the broker's license.
Related Alabama Trust Funds Questions
- Alabama regulations require a broker to maintain their trust account in a financial institution located in:
- A broker's trust account must be reconciled:
- If a buyer's offer is accepted by the seller and the buyer's check for earnest money is returned by the bank as NSF (non-sufficient funds), the broker should:
- An Alabama broker who knowingly issues a check from the trust account with insufficient funds to cover it may face:
- If AREC discovers that a broker has been consistently depositing personal funds into the trust account in excess of what is needed for bank fees, AREC would likely characterize this as:
- Which of the following is the correct treatment of interest earned on an Alabama broker's trust account?
- When there is a dispute over earnest money between a buyer and seller in Alabama, the broker should:
- An Alabama broker may deposit their own funds into a trust account in which scenario?
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