In Alabama, a qualifying broker who manages property for owners must maintain:
Why Separate trust accounts for sales and property management Is Correct
Answer B: Separate trust accounts for sales and property management
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.
Key Trust Funds Terms in This Question
People Also Study
Related Alabama Questions
- A broker maintains a trust account with a balance of $50,000 representing multiple clients' earnest money deposits. The broker should:Trust Funds
- Alabama regulations require brokers to maintain trust account records for at least:Trust Funds
- When must an Alabama broker deposit earnest money received from a buyer into the trust account?Trust Funds
- After a real estate closing in Alabama, the broker should disburse the earnest money trust funds:Trust Funds
- Alabama law requires that a company's real estate trust account be maintained:Alabama License Law
- A salesperson in Alabama receives an earnest money deposit. What must they do with it?Alabama License Law
- In Alabama, earnest money is held by the broker in a:Contracts
- A property manager in Alabama who collects rents and manages properties for others must hold:Property Management
Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
EscrowA 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.
Math Concepts
State-Specific Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →