Trust Funds
AREC has the authority to audit a broker's trust account:
AOnly after a written complaint is filed
BAt any time — with or without advance notice✓ Correct
COnly once per renewal period
DOnly if the broker has been disciplined before
Explanation
AREC has the authority to examine and audit a broker's trust accounts at any time as part of its regulatory oversight. Brokers must maintain their records in a manner that permits a full audit at any time.
Related Alabama Trust Funds Questions
- An Alabama broker may make disbursements from the trust account based on:
- If a listing expires without a sale, earnest money that was deposited should be:
- An escrow account for a real estate transaction in Alabama typically holds which of the following funds?
- A property management company collects first and last month's rent plus a security deposit from a new tenant. Which portion(s) must go into a trust account?
- Which of the following is the best description of a broker's fiduciary duty regarding trust funds?
- In Alabama, the trust account ledger must reflect:
- An Alabama broker receives rental income on behalf of a property owner. These funds must be deposited into:
- An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?
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