Trust Funds
When a broker receives a post-dated check as earnest money, the best practice is to:
ADeposit it immediately
BInform the seller and document the situation, holding the check until the appropriate date✓ Correct
CReturn it to the buyer immediately
DCash it at the broker's personal bank
Explanation
Best practice when receiving a post-dated earnest money check is to notify the seller and document the arrangement, holding the check until it can properly be deposited.
Related Alabama Trust Funds Questions
- Conversion of client funds in a trust account occurs when a broker:
- An Alabama broker receives rental income on behalf of a property owner. These funds must be deposited into:
- A broker receives an earnest money check from a buyer but the seller has not yet accepted the offer. The broker should:
- Which of the following is NOT a permissible use of an Alabama broker's trust account?
- Which of the following trust account activities would constitute commingling?
- If a broker fails to maintain proper trust account records, AREC may:
- AREC has the authority to audit a broker's trust account:
- In Alabama, the term for a broker's obligation to keep client funds separate from personal or business operating funds is:
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