Trust Funds
Conversion of trust funds in Alabama means:
ATransferring funds between client accounts
BUsing client trust funds for personal or business expenses✓ Correct
CConverting foreign currency for international transactions
DRolling funds from one property to another
Explanation
Conversion is the illegal use of client trust funds for personal or business purposes. It is among the most serious violations of Alabama license law and can result in license revocation and criminal charges.
Related Alabama Trust Funds Questions
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?
- Which of the following is permissible in an Alabama broker's trust account?
- An Alabama broker may deposit their own funds into a trust account in which scenario?
- In Alabama, the term for a broker's obligation to keep client funds separate from personal or business operating funds is:
- Under AREC rules, how quickly must a broker deposit earnest money or other trust funds after receipt?
- When must an Alabama broker deposit earnest money received from a buyer into the trust account?
- A real estate salesperson receives cash earnest money directly from a buyer. The salesperson should:
- An Alabama broker's trust account is subject to AREC examination:
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