An Alabama broker who knowingly issues a check from the trust account with insufficient funds to cover it may face:
Why Criminal charges for check fraud and AREC disciplinary action Is Correct
Answer B: Criminal charges for check fraud and AREC disciplinary action
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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- Which of the following is NOT an acceptable reason for a broker to withdraw funds from an Alabama trust account?Trust Funds
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- In Alabama, who is ultimately responsible for ensuring that client funds are properly maintained in the trust account?Trust Funds
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- Under Alabama law, AREC may audit a broker's trust account:Trust Funds
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Key Terms to Know
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
EscrowA 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.
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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