Trust Funds
An escrow account for a real estate transaction in Alabama typically holds which of the following funds?
AThe broker's commission
BEarnest money, security deposits, and advance rents✓ Correct
CThe seller's net proceeds before closing
DLender inspection fees
Explanation
Real estate trust (escrow) accounts hold client funds such as earnest money deposits, security deposits, advance rents, and funds collected in the course of real estate transactions.
Related Alabama Trust Funds Questions
- In Alabama, a qualifying broker's trust account must be reconciled:
- Commingling in real estate refers to:
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?
- A real estate broker's operating account is used for:
- Under AREC rules, how quickly must a broker deposit earnest money or other trust funds after receipt?
- 'Conversion' of trust funds occurs when a broker:
- In Alabama, an earnest money deposit held by a real estate broker must be:
- Which of the following is permissible in an Alabama broker's trust account?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →