Risk Management for Brokers


A common definition of risk is the possibility that the outcome of an action or series of actions will be different from what is anticipated. Every real estate transaction has some degree of risk, but the amount of risk should not be increased by improper actions of licensees. The real estate industry as a whole and individual licensees should strive to manage all their activities in such a way that risk, while never totally eliminated, can be minimized.

The practice of Risk Management is an ongoing task of the broker. The Alabama Real Estate Commission is of the opinion that a higher level of professionalism on the part of all licensees will provide a significant solution to risk management issues. After completing this course, the agent will be aware of their obligations; when dealing with and maintaining trust funds; as it relates to record-keeping and accountability; and to recognize the common violations which occur related to trust funds and the penalties resulting from these violations. 

Learning Objectives

Upon completion of this course, students will be able to:

  • identify the types of money held in trust
  • describe the need for trust fund accountability and recordkeeping
  • implement systems for documenting compliance with policies and procedures and develop strategies to adequately train and supervise employee and licensee activities
  • recognize and avoid illegal and unethical practices
  • understand RESPA compliance and related matters


Designed For

AL real estate professionals at all levels of their career
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