Alberta Real Estate Licensing Exam Practice · Question
What is the primary purpose of a 'trust account' maintained by a real estate brokerage?
Trust accounts are legally mandated to safeguard client funds, ensuring they are not commingled with the brokerage's operational money.
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Question: What is the primary purpose of a 'trust account' maintained by a real estate brokerage?
Answer options: ✅ To hold funds belonging to clients separate from brokerage operating funds
- To pay the brokerage's monthly expenses
- To invest client funds for higher returns
- To provide loans to clients for down payments
Correct answer: To hold funds belonging to clients separate from brokerage operating funds
Explanation: Trust accounts are legally mandated to safeguard client funds, ensuring they are not commingled with the brokerage's operational money.
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