Trust Funds
What is an IOLTA account in the context of real estate trust accounts?
AAn Individual Online Transaction Account
BAn Interest on Lawyers Trust Account — an interest-bearing trust account where interest is pooled for legal aid✓ Correct
CAn investment account managed by AREC
DAn international real estate transaction account
Explanation
IOLTA (Interest on Lawyers' Trust Accounts) are pooled interest-bearing trust accounts used by attorneys, where the interest earned is remitted to fund legal aid programs.
Related Alabama Trust Funds Questions
- When must an Alabama broker deposit earnest money received from a buyer into the trust account?
- If a listing expires without a sale, earnest money that was deposited should be:
- Conversion of client funds in a trust account occurs when a broker:
- 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 who holds earnest money from a buyer and the deal falls through due to a contract dispute must:
- A broker maintains a trust account with a balance of $50,000 representing multiple clients' earnest money deposits. The broker should:
- Conversion of trust funds in Alabama means:
- A broker's trust account must be reconciled:
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