Trust Funds
If a buyer's offer is accepted by the seller and the buyer's check for earnest money is returned by the bank as NSF (non-sufficient funds), the broker should:
AIgnore it because the contract is already signed
BNotify the seller and follow the broker's office policies and legal guidance✓ Correct
CImmediately cancel the purchase contract
DPersonally advance funds to cover the bounced check
Explanation
A broker who receives a bounced earnest money check must notify the seller promptly and follow legal guidance about the impact on the contract.
Related Alabama Trust Funds Questions
- A real estate broker's operating account is used for:
- A security deposit collected from a tenant by a property manager in Alabama must be:
- 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 would be considered a violation of Alabama trust account rules?
- An Alabama broker receives security deposits from tenants managed under a property management agreement. These funds must be:
- A broker who holds earnest money from a buyer and the deal falls through due to a contract dispute must:
- An Alabama broker who knowingly issues a check from the trust account with insufficient funds to cover it may face:
- In Alabama, the trust account ledger must reflect:
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