Trust Funds
Under Alabama law, AREC may audit a broker's trust account:
AOnly after receiving a formal complaint
BAt any time, with or without notice✓ Correct
COnly once every two years
DOnly with a court order
Explanation
AREC has the authority to inspect and audit a broker's trust account at any time as part of its regulatory oversight, with or without advance notice.
Related Alabama Trust Funds Questions
- A broker maintains a trust account with a balance of $50,000 representing multiple clients' earnest money deposits. The broker should:
- Which of the following is the best description of a broker's fiduciary duty regarding trust funds?
- Conversion of trust funds occurs when a broker:
- A security deposit collected from a tenant by a property manager in Alabama must be:
- When a real estate transaction closes, how should the earnest money be handled?
- A broker may disburse funds from a trust account based on:
- In Alabama, an earnest money deposit held by a real estate broker must be:
- A real estate salesperson receives cash earnest money directly from a buyer. The salesperson should:
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