Trust Funds
When there is a dispute over earnest money between a buyer and seller in Alabama, the broker should:
ARelease the funds to whoever demands them first
BRetain the funds in trust until the dispute is resolved by agreement, mediation, arbitration, or court order✓ Correct
CReturn all funds to the buyer immediately
DGive the funds to the seller as the aggrieved party
Explanation
When there is a dispute over trust funds, the broker should hold the funds in the trust account and not release them until the parties reach an agreement or a court order directs otherwise.
Related Alabama Trust Funds Questions
- An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?
- An Alabama broker may deposit their own funds into a trust account in which scenario?
- In Alabama, a qualifying broker who manages property for owners must maintain:
- In Alabama, a real estate broker's trust (escrow) account must be:
- 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:
- Which of the following is the best description of a broker's fiduciary duty regarding trust funds?
- In Alabama, who is ultimately responsible for ensuring that client funds are properly maintained in the trust account?
- A real estate salesperson receives cash earnest money directly from a buyer. The salesperson should:
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