Alberta Real Estate Licensing Exam Practice · Question
What is the primary purpose of a 'trust account' held by a real estate brokerage?
Trust accounts are legally mandated to safeguard client funds, ensuring they are not commingled with brokerage operating funds.
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Question: What is the primary purpose of a 'trust account' held by a real estate brokerage?
Answer options: ✅ To hold funds belonging to clients separate from the brokerage's operating funds.
- To invest client funds for profit until the transaction closes.
- To pay the brokerage's staff salaries and office expenses.
- To act as a personal savings account for the broker.
Correct answer: To hold funds belonging to clients separate from the brokerage's operating funds.
Explanation: Trust accounts are legally mandated to safeguard client funds, ensuring they are not commingled with brokerage operating funds.
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