Arkansas Real Estate Practice Exam

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Under which circumstance can trust funds be disbursed upon disagreement among parties?

Upon securing a written agreement from all interested parties
Upon the broker's discretion
Upon the filing of an interpleader action in court
Without notifying all parties

The correct answer is: Upon the filing of an interpleader action in court

While trust funds can typically only be disbursed upon mutual agreement among parties, in cases where there is a disagreement, an interpleader action can be filed in court to resolve the issue. This allows for a neutral third party (usually the court) to make a decision on how the trust funds should be distributed. Option A is incorrect because it assumes that all parties would be willing to provide written agreement, which may not always be the case in a disagreement. Option B is incorrect because it gives the broker too much power and could potentially lead to a misuse of trust funds. Option D is incorrect because it goes against the principle of trust funds being disbursed in a fair and transparent manner. The best course of action in disagreements regarding trust funds is to file an interpleader action in court.