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Is commingling legal in Alabama?

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Question & Answer

Review the question and all answer choices

A

No

Correct Answer
B

Yes

Alabama law strictly prohibits commingling of client funds with personal or business accounts. This protection ensures client funds remain available for their intended purpose and cannot be used by the agent for other expenses.

C

Sometimes

Commingling is never permissible in Alabama real estate practice. There are no circumstances or situations where an agent can legally mix client funds with their own money.

D

With permission

No special permission exists that allows commingling in Alabama. Real estate brokers and agents must maintain separate trust accounts for client funds without exception.

Why is this correct?

Commingling is prohibited.

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