Trust Funds
In Alabama, the term for a broker's obligation to keep client funds separate from personal or business operating funds is:
ACommingling
BEscheat
CTrust fund accounting / segregation of funds✓ Correct
DConversion
Explanation
Alabama requires brokers to maintain client funds (earnest money, security deposits, etc.) in a separate trust or escrow account — segregated from the broker's personal and business operating accounts.
Related Alabama Trust Funds Questions
- After a real estate closing in Alabama, the broker should disburse the earnest money trust funds:
- An Alabama broker may deposit their own funds into a trust account in which scenario?
- Commingling in real estate refers to:
- In Alabama, the trust account ledger must reflect:
- 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?
- A broker's trust account must be reconciled:
- Which of the following is the correct treatment of interest earned on an Alabama broker's trust account?
- When a broker receives a post-dated check as earnest money, the best practice is to:
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