What is a trust account in the context of an Alberta real estate brokerage?
Correct Answer
A) A separate account holding client funds apart from the brokerage's own funds
Under the Real Estate Act and RECA rules, brokerages must maintain a trust account that is separate from their operating funds. Client money, such as purchase deposits, must be deposited into this trust account. The brokerage cannot use trust funds for its own purposes, and strict accounting and reporting requirements apply.
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