If a broker fails to maintain proper trust account records, AREC may:
Why Suspend or revoke the broker's license and impose fines Is Correct
Answer B: Suspend or revoke the broker's license and impose fines
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
- Alabama regulations require a broker to maintain their trust account in a financial institution located in: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 has the authority to audit a broker's trust account:Trust Funds
- If an Alabama licensee moves to a new state but wishes to maintain their Alabama license, they must:Alabama License Law
- If an Alabama licensee is found to have made a false statement on their license application, AREC may:Alabama License Law
- AREC requires that all licensees affiliated with a broker maintain their license:Alabama License Law
Key Terms to Know
A 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.
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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