790-X-3.03. Deposit Of Funds.

(1)    The deposit and accounting for at all times of all funds belonging
to or being held for others in a separate federally insured account or
accounts in a financial institution located in Alabama shall require that
the qualifying broker be a customer of the financial institution holding all
such accounts and the qualifying broker shall be one of the persons with
authority to deposit and withdraw funds and to write or make checks as
necessary on all such accounts.
(2)  Each real estate salesman or associate broker shall pay over to his or her
qualifying broker all funds coming into his or her possession in trust for other
parties immediately upon receipt of same.
(3)  Each qualifying broker is responsible for deposit of all funds belonging
to others coming into his or her possession or of a salesperson or associate
broker licensed under him or her where such funds are to be held in trust,
unless the qualifying broker is expressly relieved of such responsibility in
writing. In cases where the funds are U. S. currency, i.e. cash as opposed to a
check or note, these funds shall be deposited immediately. In cases where a
check is received as earnest money and the contract form states that the
check is to be held for a specific length of time or until the occurrence of a
specific event, then the check shall be deposited when the contract form
states, or if no time for deposit is specified in the contract form, then the
check shall be deposited when the offer becomes a contract.
(4)  Funds to be held in trust under a contract for sale involving more than
one qualifying broker shall be held and deposited by any of the qualifying
brokers involved in the sale. All funds to be held in trust, whether by contract
for sale, or by lease or property management agreement, shall be held and
deposited by the qualifying broker who is providing these services to the
owner. In cases where a successor qualifying broker is to provide these
services, the first broker shall provide a complete accounting of the funds and
shall transfer the funds to the successor broker. The qualifying broker who is
currently providing services to the owner shall be responsible to the public
and to the commission for all funds. Upon request by the Commission or its
authorized representative, each qualifying broker shall promptly account for
any trust funds being held by that qualifying broker.
(5)  Each qualifying broker shall promptly disburse to the appropriate party
or parties any trust funds within 7 days of the consummation of the transaction
for which the funds were deposited. If for any reason the transaction is
not consummated, or if for any reason there is a disagreement involving to
whom trust funds should be disbursed, the qualifying broker shall not
disburse any trust funds except pursuant to a written agreement signed by all
parties or pursuant to a court order.
(6)  This Rule shall not prohibit a broker from depositing with the appropriate
court any trust funds which are the subject of disagreement among or
between parties under the rules of interpleader or other lawful procedure.

Statutory Authority:

Code of Ala. 1975, §§ 34-27-8, 34-27-36(a).

History:

Filed September 30, 1982. Amended: Filed
November 21, 1983; August 15, 1985; August
15, 1988. Amended: Filed November 17, 1995
effective December 22, 1995. Amended: Filed
January 25, 1996; effective February 29, 1996.
Amended: Filed August 25, 2006; effective
October 1, 2006.