Trust FundsIntermediateAlabama Exam

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 licenseCorrect
CRequired audit by the IRS
DMandatory retraining only, which reflects common industry practice

Why Disciplinary action including suspension or revocation of license Is Correct

Answer B: Disciplinary action including suspension or revocation of license

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.

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.

People Also Study

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →