Trust Funds
When a buyer's offer is rejected by the seller, the earnest money should be:
ARetained by the listing broker
BRetained by AREC for 30 days
CPromptly returned to the buyer✓ Correct
DTransferred to the seller's account
Explanation
If an offer is rejected, the buyer's earnest money must be promptly refunded because no contract was formed.
Related Alabama Trust Funds Questions
- Commingling in real estate refers to:
- Conversion of trust funds occurs when a broker:
- Which of the following is NOT a permissible use of an Alabama broker's trust account?
- An Alabama broker's trust account is subject to AREC examination:
- An Alabama broker receives rental income on behalf of a property owner. These funds must be deposited into:
- An Alabama broker may make disbursements from the trust account based on:
- What is an IOLTA account in the context of real estate trust accounts?
- If a buyer's offer is accepted by the seller and the buyer's check for earnest money is returned by the bank as NSF (non-sufficient funds), the broker should:
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