AREC has the authority to audit a broker's trust account:
Why At any time — with or without advance notice Is Correct
Answer B: At any time — with or without advance notice
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
- AREC's trust account audit authority is intended primarily to:Trust Funds
- If a broker fails to maintain proper trust account records, AREC may:Trust Funds
- An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?Trust Funds
- In Alabama, a broker's trust account records must be maintained for a minimum of:Alabama License Law
- AREC requires that all licensees affiliated with a broker maintain their license:Alabama License Law
Key Terms to Know
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
State-Specific Concepts
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