Trust Funds
If a broker fails to maintain proper trust account records, AREC may:
AIssue a verbal reminder to the broker
BSuspend or revoke the broker's license and impose fines✓ Correct
COnly require additional CE hours
DRequire the broker to hire a CPA
Explanation
Failure to maintain proper trust account records is a serious violation of Alabama license law. AREC has the authority to discipline the broker by imposing fines, suspending or revoking their license, or taking other appropriate disciplinary action.
Related Alabama Trust Funds Questions
- Conversion of trust funds occurs when a broker:
- Which of the following is permissible in an Alabama broker's trust account?
- Which of the following is NOT a permissible use of an Alabama broker's trust account?
- A broker may disburse funds from a trust account based on:
- 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 BEST describes 'commingling' of funds?
- A broker who holds earnest money from a buyer and the deal falls through due to a contract dispute must:
- Which of the following would be considered an acceptable reason to withdraw funds from a trust account?
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