Trust Funds
When must an Alabama broker deposit earnest money received from a buyer into the trust account?
AWithin 1 business day of receipt
BWithin 3 banking days of receipt✓ Correct
CAt the time of closing only
DWithin 7 calendar days of receipt
Explanation
Alabama regulations require brokers to deposit all trust funds, including earnest money, within 3 banking days of receipt.
Related Alabama Trust Funds Questions
- What is an IOLTA account in the context of real estate trust accounts?
- A broker in Alabama may maintain a single trust account for multiple clients provided:
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- After a real estate closing in Alabama, the broker should disburse the earnest money trust funds:
- If an Alabama broker has a dispute about the disbursement of earnest money and cannot resolve it with the parties, the broker should:
- An Alabama broker may deposit their own funds into a trust account in which scenario?
- An Alabama broker who knowingly issues a check from the trust account with insufficient funds to cover it may face:
- Under Alabama law, AREC may audit a broker's trust account:
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