An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?
Why Disciplinary action including suspension or revocation of license Is Correct
Answer B: Disciplinary action including suspension or revocation of license
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.
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Related Alabama Questions
- 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
- An Alabama broker's trust account is subject to AREC examination:Trust Funds
- In Alabama, a broker's trust account records must be maintained for a minimum of:Alabama License Law
- Which of the following is NOT a ground for license revocation by AREC in Alabama?Alabama License Law
- Which of the following is NOT a ground for license revocation or suspension by AREC?Alabama License Law
- How long must Alabama brokers retain trust account records?Trust Funds
- Under Alabama license law, which of the following is grounds for license revocation?Alabama License Law
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.
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.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
State-Specific Concepts
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