Trust Funds
If an Alabama broker has a dispute about the disbursement of earnest money and cannot resolve it with the parties, the broker should:
AKeep the funds indefinitely
BSeek interpleader relief by filing with a court to have the judge decide✓ Correct
CDistribute the funds equally between the parties
DReturn all funds to the buyer
Explanation
When parties dispute escrow funds and cannot reach agreement, a broker may file an interpleader action, depositing the funds with the court and allowing the court to determine the rightful recipient.
Related Alabama Trust Funds Questions
- Alabama regulations require a broker to maintain their trust account in a financial institution located in:
- In Alabama, the term for a broker's obligation to keep client funds separate from personal or business operating funds is:
- A qualifying broker is responsible for the trust account actions of all licensees in their firm. This is an example of:
- AREC has the authority to audit a broker's trust account:
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?
- Conversion of trust funds in Alabama means:
- AREC's trust account audit authority is intended primarily to:
- In Alabama, a real estate broker's trust (escrow) account must be:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →