Trust Funds
In Alabama, a broker found guilty of conversion of trust funds may face which consequences?
AOnly civil liability to the affected client
BAREC disciplinary action, civil liability, and potential criminal charges✓ Correct
COnly a warning letter from AREC
DLicense probation for 6 months only
Explanation
Conversion of trust funds is among the most serious real estate violations, potentially resulting in AREC disciplinary action (including revocation), civil lawsuits, and criminal prosecution for theft or fraud.
Related Alabama Trust Funds Questions
- A broker in Alabama may maintain a single trust account for multiple clients provided:
- Alabama regulations require brokers to maintain trust account records for at least:
- Conversion of trust funds occurs when a broker:
- Which of the following trust account activities would constitute commingling?
- How long must Alabama brokers retain trust account records?
- When a real estate transaction closes, how should the earnest money be handled?
- A property management company collects first and last month's rent plus a security deposit from a new tenant. Which portion(s) must go into a trust account?
- Which of the following would be considered a violation of Alabama trust account rules?
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