Trust Funds
In Alabama, a qualifying broker who manages property for owners must maintain:
AA single account for all properties
BSeparate trust accounts for sales and property management✓ Correct
CFunds in a national bank only
DNo special account requirements
Explanation
Alabama requires brokers to maintain separate trust accounts for real estate sales (earnest money) and property management (rents, deposits). Commingling between these accounts is prohibited.
Related Alabama Trust Funds Questions
- Which of the following would be considered a violation of Alabama trust account rules?
- In Alabama, an earnest money deposit held by a real estate broker must be:
- Conversion of trust funds in Alabama means:
- In Alabama, who is ultimately responsible for ensuring that client funds are properly maintained in the trust account?
- Which of the following BEST describes 'commingling' of funds?
- Conversion of client funds in a trust account occurs when a broker:
- 'Conversion' of trust funds occurs when a broker:
- Interest earned on Alabama broker trust accounts typically:
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