Alabama Exam Prep
Once a person has passed the Alabama prelicense exam, he or she is issued with a Temporary License Certificate which allows them to practice real estate. How long does the person have to complete the necessary procedures to gain a full real estate license? A) 1 year B) 6 months C) 2 years D) 18 months
A) 1 year
Any action by the Commission against an accused licensee begins with the accused being served with a copy of the formal complaint against him. How much notice of the time, date and place of hearing will the licensee be given? A) 15 days B) 7 days C) 30 days D) 90 days
A) 15 days
Within the first year of licensure, a real estate salesperson must complete how many hours of post-license coursework? A) 30 hours B) 60 hours C) 90 hours D) 120 hours
A) 30 hours
Of the following circumstances, which is the only case that is eligible for damages from the Recovery Fund? A) A broker or salesperson with an active license who is negligent in helping a friend sell a property. B) A broker or salesperson who is negligent in helping his widowed mother purchase a condo. C) A broker or salesperson with an inactive license who is negligent in helping a neighbor make a real estate purchase. D) A broker or salesperson who is working on developing a time-sharing project.
A) A broker or salesperson with an active license who is negligent in helping a friend sell a property. The Fund is NOT obligated to pay for the acts or omissions of a licensee acting on behalf of his or her child, spouse, or parent; for acts or omissions of an inactive licensee; for the acts or omissions of a corporation, branch office or partnership except through its licensed salespersons and brokers as individuals; or from an act or omission of a broker or salesperson in conjunction with the marketing or development of a time-sharing project.
Brad is listing his name and phone number in a phone listing ad and he wants the heading to read, "Brad James, Real Estate Representative, Specializing in Fine Home Sales." What other information must Brad include in his phone listing? A) Brad must also include the name of the broker who employs him. B) Brad must include his real estate salesperson's license number. C) Brad must include the address of the brokerage firm with which he is employed. D) Brad does not have to include any additional information; his listing is sufficient as it is.
A) Brad must also include the name of the broker who employs him.
To meet continuing education requirements each license period, licensees must complete which of the following course sequences approved by the Commission? A) A course in Risk Management plus 1 of the following: License Law/Trust Funds; Fair Housing, Equal Opportunity and ADA; or RECAD. B) A course in RECAD plus 2 of the following: License Law/Trust Funds; Fair Housing, Equal Opportunity and ADA; or Risk Management. C) Any 3 of the following courses: License Law/Trust Funds; Fair Housing, Equal Opportunity and ADA; Risk Management; or RECAD. D) 1 course in each of the following areas: License Law/Trust Funds; Fair Housing, Equal Opportunity and ADA; RECAD; and Risk Management.
A) A course in Risk Management plus 1 of the following: License Law/Trust Funds; Fair Housing, Equal Opportunity and ADA; or RECAD. Each license period, a licensee must complete a 3 clock hour continuing education course in Risk Management plus 3 clock hours in either License Law/Trust Funds; Fair Housing, Equal Opportunity and ADA; or RECAD to meet the core curriculum requirements.
If a licensee breaks an article of the Alabama real estate law, he or she is considered to have committed which violation? A) Class A Misdemeanor B) Felony C) Larceny D) Class B Felony
A) Class A Misdemeanor Penalties exist for any person or corporation that violates any provision of real estate law. Such violations are Class A Misdemeanors. If the person is convicted of the offense, he or she will be punished accordingly.
Trey is in his final year of a license period, and the deadline for filing a license renewal is September 30th. If Trey misses the deadline, which of the following is TRUE? A) His license will be placed on inactive status as of October 1st. B) His license will be placed on inactive status as of October 15th unless he files an extension petition by October 1st. C) His license will be placed on inactive status thirty days after the deadline. D) His license will be placed on inactive status on the last day of the license period - December 31st.
A) His license will be placed on inactive status as of October 1st. If Trey misses the September 30th deadline for filing a license renewal, his license will be placed on inactive status the day after the filing deadline.
A continuing education course completed in another state is valid ONLY in which circumstances? A) If the course is approved by any state and appropriate documentation of completion is submitted. B) If the course meets the requirements of the core curriculum of Alabama for continuing education coursework. C) If instructor application and course review fee have been submitted to the Commission in a timely fashion. D) If the licensee held a current Alabama real estate salesperson's license at the time of course enrollment.
A) If the course is approved by any state and appropriate documentation of completion is submitted. Any licensee who completes a continuing education course in another state may receive elective credit in Alabama upon successful completion of the course by submitting appropriate documentation.
If a consumer files a complaint against a licensee with the Commission, what is the procedure the Commission will take? A) Investigate the actions and records of the licensee, issue subpoenas, listen to the testimony of witnesses, and require the production of records and documents to support the investigation. B) The commission may not take actions based on a single complaint, but if a licensee has 2 or more complaints made against him or her, then the Commission will order the licensee appear before the Commission to account for their actions. C) Take a detailed account of events from the consumer and turn all the evidence over to the appropriate judicial authorities for that area. D) Immediately revoke the licensee's license and place the licensee on a "black list" banning them from holding a license for 7 years.
A) Investigate the actions and records of the licensee, issue subpoenas, listen to the testimony of witnesses, and require the production of records and documents to support the investigation. Under Alabama law, the Commission may on its own, or on the verified complaint in writing of any person, investigate the actions and records of a licensee. It is also within the Commission's authority to issue subpoenas and require the testimony of witnesses, and the production of records and documents during an investigation.
To assist licensees understand and conform to RECAD, the Commission has written a Consumer Information Booklet. Is use of the booklet mandatory? A) No, use of the Consumer Information Booklet is optional. B) Yes, use of the Consumer Information Booklet is mandatory. C) Use of the Consumer Information Booklet is optional until an agency agreement is signed, upon which time it becomes mandatory. D) Use of the Consumer Information Booklet is mandatory until an agency agreement is signed, upon which time it becomes optional.
A) No, use of the Consumer Information Booklet is optional.
Under the Real Estate Consumers Agency and Disclosure Act (RECAD), all real estate companies have to adopt and maintain an agency disclosure office policy. How often is the qualifying broker required to explain the office policy to all of the licensees? A) Once per year B) Once per month C) Once every 3 years D) Once to each new hiree when they join the company
A) Once per year
Janet told her broker, Paul, she had to clear $142,000 when she sold her home. Paul agreed and sold the home for $198,000, yielding a profit of $56,000 after settling all debts. Paul gave Janet $142,000 and keep the remaining funds. Which is TRUE? A) Paul agreed to an illegal net listing. B) Paul successfully sold Janet's home yielding the net price she asked for and securing the commission he required as part of his seller agency agreement. C) Paul's commission was too high. D) Paul should have given more of the remaining funds to Janet.
A) Paul agreed to an illegal net listing.
Susan insistently requests a dual agency agreement, but the licensee thinks the client would be best served by a single agency agreement. What would be the best course of action for the licensee? A) Show her the Consumer Information Booklet, explaining the Single Agency and Dual Consensual Agency sections. After providing this information and clear answers any questions, the licensee can then ask for the Susan's decision. B) Draw up the requested consensual dual agency agreement. This agreement may be against the licensee's best judgment, but the licensee owes loyalty to Susan and must respect her request. C) Present Susan with a single agency agreement instead and explain that, in the circumstances, it's the only feasible option. D) Recommend Susan to another licensee who will execute a dual agency agreement.
A) Show her the Consumer Information Booklet, explaining the Single Agency and Dual Consensual Agency sections. After providing this information and clear answers any questions, the licensee can then ask for the Susan's decision.
A consumer called the Commission to accuse a licensee of violating license law. The Commission sent him a form to complete in order to follow up in writing but the consumer never returned the written document. Which of the following statements is TRUE? A) The Commission may investigate the situation of its own volition. B) The Commission must turn the matter over to the Association of Realtors. C) The Commission should immediately suspend the licensee's license. D) The Commission must ignore the complaint without the written document.
A) The Commission may investigate the situation of its own volition.
Which of the following is TRUE of earnest money supplied in cash? A) The funds shall be deposited immediately B) The funds shall be deposited within 24 hours C) The funds shall be deposited within 48 hours D) Funds in cash are not acceptable; earnest money must be paid by cash or note
A) The funds shall be deposited immediately
Who is publicly responsible for maintaining funds deposited in trust for pending real estate transactions? A) The qualifying broker who is currently providing services to the owner B) Any salesperson of the qualifying broker that is designated to provide services to the owner C) Any designee of the qualifying broker D) The Chair of the Alabama Real Estate Commission, on behalf of the qualifying broker
A) The qualifying broker who is currently providing services to the owner The qualifying broker is responsible for deposit of all trust funds belonging to others coming into his or her possession or of a salesperson or associate broker licensed under him unless the qualifying broker is relieved of this responsibility in writing.
Which of the following is true of a broker's license? A) When a person is issued a broker's license, his or her real estate salesperson's license is terminated. B) When a person is issued a broker's license, his or her real estate salesperson's license is renewed to match the term of the broker's license. C) When a person is issued a broker's license, his or her real estate salesperson's license is inactivated for as long as the broker's license is valid. D) When a person is issued a broker's license, his or her real estate salesperson's license is reissued to reflect the change in status.
A) When a person is issued a broker's license, his or her real estate salesperson's license is terminated.
What is the minimum eligible age for real estate salesperson licensure in Alabama? A) 18 years B) 19 years C) 20 years D) 21 years
B) 19 years
What is the term limit declared in Alabama state law for Alabama Real Estate Commissioners? A) 1 term in office B) 2 consecutive terms of office C) 3 consecutive terms of office D) 12 years total
B) 2 consecutive terms of office
From the date of enrollment, how long does an applicant have to complete all prelicense coursework? A) A maximum of 6 months B) A maximum of 1 year C) A maximum of 18 months D) A maximum of 2 years
B) A maximum of 1 year
After how many years may a licensee destroy or delete all records of funds belonging to others? A) A minimum of 2 years B) A minimum of 3 years C) A minimum of 4 years D) A minimum of 5 years
B) A minimum of 3 years A licensee must keep for at least 3 years a complete record of funds belonging to others, and records must show to whom the money belongs, date deposited, date of withdrawal, and other pertinent information.
Who of the following IS NOT required to provide a client with the Real Estate Brokerage Services Disclosure form for his or her signature? A) A salesperson acting on behalf of the seller of a residential property. B) A salesperson engaged in property management services, C) A broker acting on behalf of the buyer of a residential property. D) A licensee working as a transaction broker for a seller of a residential property.
B) A salesperson engaged in property management services, Alabama law requires that all licensees provide the RECAD form to the consumer as soon as reasonably possible before any confidential information is disclosed with the exception of those engaged in rental or property management services or when representing corporations, non-profit corporations, professional corporations and similar type entities in a residential property transaction.
At the conclusion of a real estate transaction, how long does the qualifying broker have to disburse trust funds to the appropriate party or parties? A) All funds kept in trust must be disbursed within 3 days B) All funds kept in trust must be disbursed within 7 days C) All funds kept in trust must be disbursed within 10 days D) All funds kept in trust must be disbursed in accordance with the written agreement signed by all parties
B) All funds kept in trust must be disbursed within 7 days Qualifying brokers must disburse trust funds to the appropriate party or parties within 7 days of the consummation of the transaction for which the funds were deposited.
If a judgment is made against a licensee that calls for disbursement of any funds from the Recovery Fund, which of the following is TRUE? A) The licensee is automatically put on probation, and his/her licenses are revoked pending review by the Governor. B) All licenses which the licensee holds are terminated by the Commission. C) All licenses which the licensee holds are rendered inactive, and the licensee must retake all prelicense coursework and pass a new licensing exam to have the licenses reinstated. D) All licenses which the licensee holds are permanently revoked and may never again be issued in the state of Alabama.
B) All licenses which the licensee holds are terminated by the Commission. The licenses that the licensee holds may be terminated by the Commission, and the Commission may refuse to issue a new license until he or she has repaid in full, plus interest, the full amount paid from the Recovery Fund.
Which of the following statements is TRUE of an applicant whose real estate license has been revoked? A) Applicant may not be relicensed in Alabama for a minimum of 5 years. B) Applicant may not be relicensed in Alabama without the approval of the Alabama Real Estate Commission. C) Applicant may not be relicensed in Alabama without a written appeal, a reinstatement fee of $250, and a probationary period of 2 years. D) Applicant may not be relicensed in Alabama or any other state.
B) Applicant may not be relicensed in Alabama without the approval of the Alabama Real Estate Commission.
Which of the following best describes why salespersons and associate brokers may NOT practice real estate unless they are licensed under a qualifying broker? A) Because a qualifying broker is more experienced and therefore less likely to make mistakes in real estate transactions. B) Because a qualifying broker is responsible to the Commission for all acts of the salespeople and associate brokers licensed under him. C) Because a qualifying broker carries the mandated insurance to protect the public in the event of an error in a real estate transaction that causes them financial harm. D) Because a qualifying broker gats paid more and therefore demands greater responsibility than salespersons and associate brokers.
B) Because a qualifying broker is responsible to the Commission for all acts of the salespeople and associate brokers licensed under him. Salespersons and associate brokers may NOT practice real estate unless they are licensed under a qualifying broker because the qualifying broker is responsible to the Commission and to the public for all acts of the salespeople and associate brokers licensed under him, or for any company for which he is the qualifying broker.
Which of the following best represents the retention requirements for estimated closing statements? A) Cooperating brokers must maintain both buyer's and seller's statements in the files of a qualifying broker. B) Each licensee must retain the required statements in their qualifying broker's files. C) Estimated closing statements do not need to be kept since they are superseded by actual, detailed closing statements. D) Each licensee must submit the required forms to the Commission to be kept in the state's files.
B) Each licensee must retain the required statements in their qualifying broker's files.
The Lamont Real Estate Agency is representing both the buyers and the sellers. This is an example of which of the following relationships? A) Expanded dual agency B) Limited consensual dual agency C) Transaction brokerage D) Qualifying brokerage
B) Limited consensual dual agency Since the real estate agency is acting on the behalf of both the buyers and the sellers, the relationship is one of limited consensual dual agency.
When a licensee transfers between brokers, changes his address, or undergoes any other transfer, what is he required to do? A) He is not required to do anything provided he is still practicing real estate within the state of Alabama. B) Mail his license to the Commission with the required forms and fees. C) Give his license to his broker who will in turn mail it to the Commission with the required forms and fees. D) Mail his license to the Association of Realtors with the required forms and fees.
B) Mail his license to the Commission with the required forms and fees. Any licensee subject to any type of transfer should mail his or her license by certified or registered mail (return receipt requested) to the Commission office, along with the required form(s), license certificate(s) and fee(s).
Jen just helped the Thompsons find a new home. After the contract was accepted, the Thompsons asked Jen to help them find a mortgage broker. Jen knows a broker who pays referral fees to real estate agents. Can she refer the Thompsons to that broker? A) Yes, if the fee is disclosed in an addendum to the agency agreement. B) No. C) Yes, if the mortgage broker offers fair market interest rates and terms. D) Yes, if the mortgage broker is not related to Jen.
B) No.
Which of the following actions by a broker is NOT a violation of license law? A) Placing a "For Sale" sign in a yard without permission of the owner. B) Openly soliciting salespersons and associate brokers to change employing brokers. C) Failing to supervise the activities of licensees who are independent contractors. D) Failing to put definite termination date in a listing contract.
B) Openly soliciting salespersons and associate brokers to change employing brokers. It is perfectly legal for a broker to recruit salespeople and associate brokers that are employed by competitors. However, neglecting to use a specific termination date on a listing contract, failing to supervise independent contractors and advertising a property without the owner's permission are all violations of license law.
For which of the following may the Governor NOT remove from office any member of the Commission? A) Incompetence B) Political affiliation C) Dishonest conduct D) Inability to perform or neglecting to perform the duties required of members
B) Political affiliation
When a licensee is found to be making misrepresentations or false promises to clients, the Commission may do what? A) Imprison a licensee for up to 3 years B) Revoke or suspend the licensee's license and/or impose a fine of up to $2,500. C) Impose a fine of up to $20,000 D) The Commission has no authority in this situation.
B) Revoke or suspend the licensee's license and/or impose a fine of up to $2,500. The Commission has the authority to revoke or suspend the license or impose a fine of $100 up to $2,500, or BOTH.
The Alabama Association of Realtors wants to submit an application to the Commission for approval of a new continuing education seminar on Real Estate Ethics and Issues In the 21st Century. Which of the following is TRUE? A) The seminar is automatically approved because it is offered by the Alabama Association of Realtors. B) The Association must submit an application for approval to the Commission at least 30 days before the seminar begins. C) The Association must submit an application for approval to the Commission at least 90 days before the seminar begins. D) The Alabama Association of Realtors is not an approved college or university and cannot sponsor continuing education courses.
B) The Association must submit an application for approval to the Commission at least 30 days before the seminar begins. A course sponsor must submit an application to the Commission for approval at least 30 days before the beginning of a continuing education course.
Which of the following is NOT one of the 3 steps that must be taken when a salesperson changes qualifying brokers, to avoid violating license law? A) The salesperson must give notice in writing to the Commission, as well as send a copy of the notice to his or her qualifying broker. B) The new qualifying broker must notify the salesperson's change of employer with the Association of Realtors. C) The new qualifying broker must file a request for the transfer and a statement assuming liability for the licensee, with the Commission. D) A payment of $25 must be made, at which time a new license certificate will be issued to the salesperson.
B) The new qualifying broker must notify the salesperson's change of employer with the Association of Realtors. The salesperson must notify the Commission and pay the $25 fee for a replacement license, and the qualifying broker must also notify the Commission.
Who is responsible for keeping an individual's original certificate of licensure? A) The individual B) The qualifying broker C) The office of the Alabama Real Estate Commission D) The office of the Real Estate Society
B) The qualifying broker
A salesperson discovers an error on the closing statement. Who is responsible for ensuring the accuracy of closing statements? A) The salesperson is responsible B) The salesperson's broker is responsible C) The title company is responsible D) The attorney is responsible
B) The salesperson's broker is responsible Although a salesperson should double-check all documents for accuracy, it is the broker who is responsible for the accuracy of agreements, offers, contacts, closing statements and other documents.
Anna would like to become licensed as a real estate salesperson in Alabama. In addition to the form required by the Alabama Real Estate Commission, which of the following is required for application? A) Proof of completion of an approved 45-hour real estate education course. B) Transcripts showing high school graduation or equivalent education. C) References from 3 business associates who can recommend Anna for licensure. D) A $25 fee for a criminal record search.
B) Transcripts showing high school graduation or equivalent education.
Ellis James completed his prelicense coursework on March 30th. How long does he have to pass the prelicense examination? A) Until September 30th of the same year B) Until March 30th of the following year C) Until September 30th, 2 years later D) Until March 30th, 2 years later
B) Until March 30th of the following year An applicant has up to 12 months from the date of course completion to pass the real estate salesperson's examination.
When shall a check received as earnest money be deposited? A) Immediately upon receipt B) When the offer becomes a binding contract or when the contract indicates C) Within 48 hours of the time specified in the contract - or, if unspecified, within 48 hours of the offer becoming a contract D) At the time of closing
B) When the offer becomes a binding contract or when the contract indicates
Appointees to the Alabama Real Estate Commission must be considered residents and citizens of the state for a minimum of how many years prior to their appointment? A) 1 year B) 3 years C) 10 years D) 12 years
C) 10 years Commission appointees must be citizens and residents of Alabama for at least 10 years prior to their appointment.
For how long must a broker maintain records of all real estate transactions? A) 1 year B) 7 years C) 3 years D) 10 years
C) 3 years Failure to keep for at least 3 years a complete record of funds belonging to others showing to whom the money belongs, date deposited, date of withdrawal, and other pertinent information is a violation of Alabama law.
The minimum required term of each Alabama Real Estate Commissioner is at least A) 1 year. B) 3 years. C) 5 years. D) 10 years.
C) 5 years.
How long is a real estate salesperson's license valid in Alabama? A) It is up to the licensee's qualifying broker. B) An initial period of 1 year and thereafter renewable for 3-year periods C) A period of 2 years D) A period of 4 years
C) A period of 2 years
Which of the following best describes a transaction brokerage agreement? A) An agreement that real estate brokers and salespeople will not act as intermediaries between buyers and sellers. B) An agreement that home buyers and sellers are clients of the licensees assisting in the transaction. C) An agreement that the real estate licensee will function to bring buyers and sellers together to complete the real estate transaction. D) An agreement that the licensee owes loyalty to all parties in the real estate transaction.
C) An agreement that the real estate licensee will function to bring buyers and sellers together to complete the real estate transaction. A transaction brokerage agreement stipulates that the real estate licensee will work on behalf of both buyers and sellers to negotiate the successful completion of the real estate transaction.
What step must an individual take to initiate an action for judgment that may result in receiving a disbursement from the Recovery Fund? A) File an appeal in the case against salesperson or broker in a court of competent jurisdiction. B) Send written notice to the Commission by certified mail. C) Apply to the court of jurisdiction directly for an order directing payment out of the Recovery Fund for all actual and compensatory damages. D) Notify the qualifying broker of intention to initiate an action for judgment.
C) Apply to the court of jurisdiction directly for an order directing payment out of the Recovery Fund for all actual and compensatory damages. An aggrieved party who has a valid judgment from a court may file a verified claim in the court in which the judgment was entered and, on 10 days' written notice to the commission, may apply to the court for an order directing payment out of the Recovery Fund of the amount unpaid on the judgment.
How often must a qualifying broker and her licensees review the office policy set forth according to the RECAD act? A) At time of hire B) Each quarter, at a minimum C) Each year, at a minimum D) Each license period, at a minimum
C) Each year, at a minimum The RECAD act requires a qualifying broker to review office policy with all his or her licensees at least 1 per year.
Which of the following is TRUE of trust funds in the case that a transaction is not consummated? A) All funds in trust will be returned in a reasonable time period to the party or parties who submitted the funds for deposit. B) All funds in trust will be kept by the qualifying broker since the party or parties have forfeited the funds through dissolution of the transaction. C) Funds will be disbursed only with a written agreement signed by all parties or pursuant to a court order. D) All in funds in trust will be turned over to the Commission for deposit in the Real Estate Recovery Fund.
C) Funds will be disbursed only with a written agreement signed by all parties or pursuant to a court order. If for any reason the transaction is not consummated or there is a disagreement about to whom trust funds should be distributed, the qualifying broker will not disburse any trust funds except pursuant to a written agreement signed by all parties or pursuant to a court order.
Derek West allowed his real estate license to lapse for 18 months during treatment for a serious illness, and the Alabama Real Estate Commission has made a determination of hardship in his circumstances. Which of the following applies to Derek's case? A) He is exempt from paying all fees and penalties. B) He is exempt from paying fees but must pay the penalties that have accrued. C) He must still pay all fees and penalties. D) He must still pay all fees and penalties AND retake the state exam.
C) He must still pay all fees and penalties.
If a licensee has his license revoked by the Commission he is allowed a hearing to offer testimony on his own behalf and to examine witnesses. Where will this hearing take place? A) In a county outside Alabama to ensure complete impartiality B) Always in Montgomery C) In the county where the applicant resides or maintains his principal place of business D) In the county where the head of the Commission resides
C) In the county where the applicant resides or maintains his principal place of business
Which of the following criteria must a qualifying broker meet? A) Licensed in Alabama and willing to hire salespeople/associate brokers as his employees. B) Licensed in Alabama with at least five years' experience as a real estate broker. C) Licensed in Alabama and able to supervise the salesperson or associate broker on a full-time basis. D) Licensed in Alabama and employed at least half-time in real estate business.
C) Licensed in Alabama and able to supervise the salesperson or associate broker on a full-time basis. A qualifying broker must be licensed in Alabama, principally employed as a real estate broker, and able to provide full-time supervision for the real estate activities of the salesperson or associate broker.
Do applicants for Alabama real estate licenses have to be Alabama residents? A) Yes, all applicants must be permanent residents within Alabama at the time of their application. B) No, but all applicants must have taken up permanent residence within Alabama within 9 months of receiving a license. C) No, but applicants must be either a citizen of the United States OR an alien with permanent resident status. D) Yes, unless they receive special dispensation from the Real Estate Commission.
C) No, but applicants must be either a citizen of the United States OR an alien with permanent resident status.
Layne, a real estate salesperson with a valid license in Georgia, is relocating to Alabama. Which of the following, besides the application form required by the Commission, must Layne submit in order to obtain an Alabama broker's license? A) A letter of recommendation from the Georgia Real Estate Commission stating that he is in good professional standing. B) Proof of active real estate sales licensure in Georgia for at least 18 months of the 24 months immediately preceding the date of application in Alabama. C) Proof of active real estate sales licensure in Georgia for at least 24 months of the 36 months immediately preceding the date of application in Alabama. D) Proof of completion of a state-approved Alabama real estate course of at least 45 hours.
C) Proof of active real estate sales licensure in Georgia for at least 24 months of the 36 months immediately preceding the date of application in Alabama.
An agency disclosure office policy stipulating the types of brokerage services a company and its licensees may offer or accept is required by which act? A) Real Estate Consumer Information Act B) Real Estate Commission Disclosure Act C) Real Estate Consumers Agency and Disclosure Act D) Real Estate Brokerage Disclosure Act
C) Real Estate Consumers Agency and Disclosure Act The Real Estate Consumers Agency and Disclosure Act requires a qualifying broker to adopt and maintain an office disclosure policy that establishes what types of brokerage services the agency offers and accepts.
Which of the following is NOT an examples of acceptable subject matter for continuing education courses? A) Appraisal and valuation B) Truth-in-lending C) Real Estate Farming 101 D) Fair housing
C) Real Estate Farming 101 Motivational courses, personal development courses, sales meetings, and in-house training and orientation courses are unacceptable subject matter for continuing education coursework.
Which of the following is TRUE of permanent school records? A) Schools maintain attendance and course completion records for 1 year, but applicants and licensees must retain copies of their school records for at least 3 years from the date of course completion. B) Schools are expected to maintain attendance and course completion records for a maximum of 2 years. C) Schools are expected to maintain attendance and course completion records for a minimum of 4 years. D) All attendance and course completion records are electronically archived by the Alabama Real Estate Commission for a minimum of 6 years.
C) Schools are expected to maintain attendance and course completion records for a minimum of 4 years.
A nonresident who wishes to apply for real estate licensure in Alabama must do which of the following? A) Submit an affidavit naming a member of the Alabama Real Estate Commission as his or her qualifying broker. B) Submit an affidavit that he or she has never committed a felony. C) Submit an affidavit that assigns agency to the Commission as his or her agent and gives the Commission jurisdiction over the applicant. D) Submit an affidavit agreeing to establish residency in Alabama within two years of the date his or her Alabama real estate license becomes effective.
C) Submit an affidavit that assigns agency to the Commission as his or her agent and gives the Commission jurisdiction over the applicant. A nonresident applicant for a real estate salesperson's license in Alabama must sign an affidavit assigning agency to the Executive Director or Assistant Executive Director of the Commission and giving the Commission jurisdiction over the applicant.
What fund is maintained by the Commission from which an aggrieved party may recover actual or compensatory damages, not including interest and court costs, sustained within the State of Alabama as a result of broker or salesperson conduct in violation of the rules and regulations of the Commission? A) RECAD Fund B) The Alabama Real Estate Damage Fund C) The Real Estate Recovery Fund D) The Real Estate Common Revenue Fund
C) The Real Estate Recovery Fund The Real Estate Recovery Fund has been established and maintained by the Commission to cover actual and compensatory damages to an aggrieved party sustained as a result of broker or salesperson misconduct.
When a licensee receives notice of any criminal prosecution or civil summons and complaint against him or her related to a real estate transaction or to the goodwill of an existing real estate business, what step must the licensee take? A) The licensee must immediately phone the Commission for advisement. B) The licensee must notify the Commission in writing within 2 business days. C) The licensee must notify the Commission in writing within 10 days. D) The licensee must immediately engage the services of an attorney who can mediate the investigation.
C) The licensee must notify the Commission in writing within 10 days. The licensee must notify the Commission by certified mail within 10 days and include a copy of the summons and complaint or a copy of any indictment or information alleging the charges.
Within what period of time must a licensee notify the Commission, in writing, of any changes made to the address of the place of business listed on his or her numbered license certificate? A) At least 30 days prior to making any changes B) At least 7 days prior to making any changes C) 7 days from the date the changes are made D) 30 days from the date the changes are made
D) 30 days from the date the changes are made A licensee must notify the Commission in writing of any changes made to the address of the place of business recorded on the numbered license certificate no later than 30 days from the date the change occurs, and such notification must include both the old and new addresses of the company.
The Alabama Real Estate Commission is comprised of A) 12 members. B) 4 members. C) 6 members. D) 9 members.
D) 9 members.
After passing the examination, what is the maximum period of time a real estate salesperson applicant has to find a qualifying broker and meet all licensing requirements? A) 30 days B) 45 days C) 60 days D) 90 days
D) 90 days
A buyer's agent receives a written offer on a single family residence that her buyers wish to submit. What must the agent provide to her buyer at the time the buyer signs the written offer? A) An explanation of limited dual consensual agency. B) A copy of the Alabama Consumer Information booklet. C) A copy of the written offer for the buyer's records. D) A complete estimated closing statement.
D) A complete estimated closing statement. At the time the buyer signs the written offer, the licensee must present an estimated closing statement that contains the licensee's best estimates of all costs the buyer is expected to have at closing and the approximate amounts of those costs.
Which of the following circumstances does NOT violate the license law? A) A real estate salesperson places a "For Sale" sign on the owner's property before he has definitive consent. B) A real estate broker whose business is thriving, hires an unlicensed assist to show homes, negotiate contracts and conclude transactions. C) A real estate broker receives a net listing agreement stipulating he will receive as commission, any amount over and above the $120,000 net price the seller set for his property. D) A qualifying broker destroys old records of contracts, leases, listings, and other real estate transaction records that are more than 3 years old.
D) A qualifying broker destroys old records of contracts, leases, listings, and other real estate transaction records that are more than 3 years old. A qualifying broker only needs to keep files copies of all contracts, leases, listings, and other transactions for 3 years. However, hiring an unlicensed person to work as a real estate salesperson, placing a 'For Sale' sign without the owner's consent, and (for a broker) accepting a net listing agreement are all license law violations.
Which of the following best describes a sub-agent? A) A sub-agent is engaged by and represents a single client. B) A sub-agent is engaged by a single client but represents the interests of both sides of a brokerage transaction. C) A sub-agent is engaged at the mutual agreement of both sides of a brokerage transaction and equally represents the interests of both parties. D) A sub-agent acts for and helps another broker in performing brokerage services for a client.
D) A sub-agent acts for and helps another broker in performing brokerage services for a client.
Which of the following is an optional form in Alabama real estate, used at the discretion of licensees? A) Real Estate Consumers Agency and Disclosure form B) Transaction brokerage agreement C) Limited dual agency consent form D) Alabama Consumer Information Booklet
D) Alabama Consumer Information Booklet
Under RECAD, in what format may the agency disclosure office policy be maintained and presented within an office environment? A) Only on a computer database that is readily accessible to ALL members of staff. B) Only in printed form that must be laminated or framed and placed on a wall area visible to ALL members of staff and visiting clients. C) As long as it is somewhere on the company's website, it is sufficient. D) Any format, including devices such as loose leaf ring notebooks.
D) Any format, including devices such as loose leaf ring notebooks.
For which of the following changes to a license is a fee NOT charged? A) The change of personal name of a qualifying broker. B) The change of personal name of a salesperson or associate broker. C) The change of business location. D) Change from active status license to inactive status.
D) Change from active status license to inactive status. No fee is charged for the change from active status to inactive status.
In order to sit for the prelicense exam, applicants must meet which of the following requirements? A) Complete the full 60-clock hour prelicense course, pass the final exam with a minimum grade of 75%, and be issued the Certificate of Course Completion at least 3 months prior to sitting for the exam B) Complete at least 45 of the 60 required clock hours of the prelicense course and be issued the Certificate of Course Completion prior to sitting for the exam C) Complete either all of the 60 clock hours of required prelicense coursework OR pass the final exam with a minimum grade of 85% D) Complete the full 60-hour prelicense course, pass the final exam with a minimum grade of 70%, and have course completion reported electronically to the Commission
D) Complete the full 60-hour prelicense course, pass the final exam with a minimum grade of 70%, and have course completion reported electronically to the Commission Applicants will not be qualified to sit for the exam unless they have completed the full course hours and passed the final exam with a minimum grade of 70%, as reported to Commission electronically by the instructor.
Under which of the following conditions may a broker NOT serve as the qualifying broker for a salesperson or associate broker? A) If the broker is licensed in Alabama. B) If his principal business is that of a real estate broker. C) If he is in a position to actually supervise the real estate activities of the associate broker or salesperson on a full-time basis. D) If the broker's license is under suspension but the license of the salesperson is not.
D) If the broker's license is under suspension but the license of the salesperson is not. A broker can serve as the qualifying broker for a salesperson or associate broker only: if the broker is licensed in Alabama; if his principal business is that of a real estate broker; if he is in a position to actually supervise the real estate activities of the associate broker or salesperson on a full-time basis.
Which of the following is NOT required of an applicant for an Alabama real estate license? A) Trustworthiness B) Competent to handle real estate business C) Must not have had a professional license revoked in the previous 2 years D) Must hold a valid Alabama driving license
D) Must hold a valid Alabama driving license All applicants must be: trustworthy; competent to handle the usual business of a broker or salesperson so that the interests of the public are protected; must not have had either an application or a license rejected or revoked within the past 2 years (unless the person's license rejection was based on his/her failure to pass a written examination).
Gene assigned his unlicensed assistant Rose to work on a closing. She worked diligently and called both the buyer and seller encouraging their acceptance of the deal. Gene wants to pay Rose a percentage of the commission. Can he do so? A) Yes. Gene may pay Rose for her work on the sale because she helped with the negotiation process. B) Yes, but Gene may only compensate Rose to a maximum of 2% of the sales commission. C) Gene may give Rose a bonus at the end of the year to compensate her for any such worked performed throughout the fiscal period. D) No. In fact Gene and Rose are both in violation of the Alabama real estate statutes regarding unlicensed assistants.
D) No. In fact Gene and Rose are both in violation of the Alabama real estate statutes regarding unlicensed assistants. An unlicensed assistant may not negotiate terms of a real estate sale and may not collect any commission for his or her services.
If the Commission has to make a payment from the recovery fund in settlement of a claim against a licensee, what actions will it then take? A) The Commission may place "penalty" points on the license of the licensee. B) The Commission may downgrade the licensee's license to "provisional" status. C) The Commission may take no action because this is a matter between the licensee and the recovery fund. D) The Commission may terminate all licenses held by the licensee.
D) The Commission may terminate all licenses held by the licensee. If the Commission has to pay any amount from the recovery fund in settlement of a claim or toward satisfaction of a judgment against a licensee, all licenses of the licensee may be terminated by the Commission.
After the Commission has conducted an investigation into misconduct by a licensee and found probably cause, what will the Commission do? A) The Commission will turn its findings over to the appropriate law enforcement agency for that jurisdiction. B) The Commission will present the case to the Association of Realtors. C) The Commission will bring the licensee and the consumer who filed the original complaint together in mediation to resolve the dispute. D) The Commission will file a formal complaint against the licensee and hold a hearing on the formal complaint.
D) The Commission will file a formal complaint against the licensee and hold a hearing on the formal complaint. Once this preliminary investigation is done, and if probable cause is found, a formal complaint will then be filed, and the Commission will hold a hearing on the formal complaint.
27 of 40A broker has 4 offices within the state of Alabama. Regarding the licensing of each office, which is TRUE? A) The broker only requires 1 license to cover all 4 office locations. B) The broker's business is covered by his own broker license, so the 4 office locations require no further licensure. C) The broker will require a license for the main office and a second license to cover all the other branch offices combined, so in this case he will need 2 licenses. D) The broker will require a separate license for all 4 office locations.
D) The broker will require a separate license for all 4 office locations.
A prelicense course must meet which of the following qualifications? A) A member of the Alabama Real Estate Commission must teach at least half the course. B) The instructor must supply a student roster for the 60-hour course to the Commission no later than one month after the first class meeting. C) No more than 4 hours of instruction can be planned for one day. D) The course calendar must establish definite beginning and ending dates.
D) The course calendar must establish definite beginning and ending dates.
Which of the following is a violation of RECAD? A) A qualifying broker is offering single agency, sub-agency, limited consensual dual agency, and transaction brokerage. B) Not considering the licensee an agent of the consumer from initial contact between licensee and consumer, until the broker enters into a specific written agency agreement. C) After the consumer decides on the specific type of brokerage arrangement, the brokerage agreement must contain a statement of the terms and conditions of the brokerage services that the broker will provide. D) Witholding the types of brokerage service available to a client until AFTER the client has signed a client-broker representation agreement.
D) Witholding the types of brokerage service available to a client until AFTER the client has signed a client-broker representation agreement. RECAD is an act that requires the qualifying broker to work to a disclosure policy that sets out the types of brokerage services that his/her company and licensees may offer or accept. Withholding is the opposite of disclosure.