Real Estate

Appeal notices are typically filed in the circuit court of Montgomery County, along with a ______ appeal bond.

$200

Cheryl, the aggrieved claimant on a complaint against a licensee, has just won her claim. She demonstrated that the licensee was responsible for her losing $60,000. She also paid for a lawyer, which was another $5,000. With other fees and incidentals, her total damages are $67,000. What is the amount she'll receive?

$25,000

Louis gave a $45,000 down payment to his agent Tim, a managing broker, who cashed the check and promptly left the country. Louis has just won his claim against Tim. His total amount lost, owing to bank fees and lawyer expenses, is $55,000. How much will he receive from Alabama's Recovery Fund, assuming he files two complaints?

$50,000 (each is worth $25,000)

How many days do licensees have to request a hearing after AREC issues them a violation notice?

15 or the violation becomes final

How many hours of post-licensing education are active temporary salespeople required to take in Alabama?

30

When a qualifying broker dies, the rest of the brokerage has _______ days to choose someone to apply for a temporary qualifying broker license.

30

The qualifying broker at Choice Realty has become incapacitated. How long does the company have to choose a salesperson or broker to apply for a temporary qualifying broker's license?

30 days

In Alabama, what's the broker pre-licensing education requirement?

60 hours of broker pre-licensing education plus an additional six hours of Alabama coursework

Which of the following is a disciplinary action that the commission may NOT take against a licensee?

A jail sentence of up to 18 months

If your license is suspended, it's only temporary, If your license is revoked, it is permanently removed and requires ________.

A new license application after the penalty period

What must you have to apply as a real estate salesperson in Alabama?

A sponsoring broker

Which of the following is true about disciplinary actions in Alabama?

A suspended license can be reinstated once the licensee has completed certain actions.

Robin, a member of the AREC board, notices that the amount of the Alabama Recovery Fund is $425,000. What happens next?

AREC will order each licensee in the state to pay a $30 assessment to replenish the fund.

Who's required to take 30 hours of post-license education during their first six months after getting an initial license in Alabama?

Active Temporary Licensees

In which of these matters is AREC most likely to get involved?

Adam has been engaging in real estate activities, but his license lapsed five years ago

The ______ enforces Alabama real estate rules and regulations.

Alabama Real Estate Commission

which entity administers and enforces Alabama's residential and commercial laws for activities that require a license?

Alabama Real Estate Commission

Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer. What will happen to the check now?

An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied.

The commission is holding a hearing for licensee Dana. Which of the following is she NOT allowed to do?

Ask a commission member to testify on her behalf, since the commission is running her hearing.

Which one of the following statements about real estate licenses is true?

Before you can legally perform any activities that licensed real estate professionals perform, you must have your real estate license.

Ben, a managing broker, is holding transaction money in a trust account. The transaction doesn't close, and both the buyer and seller claim that the money in the account is theirs. Two weeks later, both parties come to Ben's office and say they've reached an agreement, and that Ben should give the money to the seller. Ben says, "I can't disburse these funds until I get your signed permission." When both parties sign, Ben disburses the money to the seller. What, if anything, did Ben do wrong?

Ben disbursed this money correctly.

In which of the following cases can AREC use its authority to suspend a real estate license?

Broker Dean has repeatedly broken confidentiality with his clients for financial gain.

How does the requirement that real estate professionals be licensed protect the public?

By requiring licensees to have certain education, training, and standards

Which of the following are considered trust funds?

Cash, checks, and other items of value

Danielle doesn't live in Alabama. She's entered into a written agreement with an Alabama broker that says that they agree to work together on a particular transaction. The written agreement gives details about the property in question, and Danielle now has to file the written agreement with AREC. What kind of agreement is this?

Co-brokerage

What is commingling?

Combining trust funds with non-trust funds into one account

It's Friday afternoon, and Lori can't make it to the bank in time to deposit an earnest money check in the brokerage's escrow account, so she uses her mobile app to deposit it into her personal checking account for safekeeping. What violation did Lori just commit?

Commingling

Mandatory topics for continuing education during each licensing period in Alabama include risk management and ______.

Commission-approved courses

Bob holds a real estate license in Tennessee and is looking to obtain a reciprocal license in Alabama. Which of the following is a requirement he must meet?

Complete six hours of Alabama pre-licensing education.

Which of the following statements about reactivating your license in Alabama is true?

Completing 15 hours of CE during the current licensing period is one step toward reactivation.

License candidates must request a ____________ prior to applying for an Alabama real estate license.

Criminal record check with fingerprinting.

One of the following licensee's actions would constitute commingling. Which is it?

Cynthia deposited her client's earnest money check into the firm's operating account.

which statement is true about licensing authorities?

Each state has its own licensing authority.

To provide sellers with assurance they won't back out of the sale, buyers may offer a financial deposit that will be kept in escrow until the conditions are met at closing. What's this deposit called?

Earnest money

George wants to co-broker a home purchase in Alabama. His state allows this arrangement. Which of the following is a requirement he must meet?

Enter into a written agreement with an Alabama broker.

Which of the following statements about escrow accounts is correct?

Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits.

Which of the following statements about estimated closing statements in Alabama is true?

Estimated closing statements help prevent mortgage fraud by showing all costs up front.

The funds placed in trust accounts are insured by the ______.

FDIC

Should the broker end up in litigation, any trust funds not safely tucked away in a trust account could be ______.

Frozen

It's October 1 of an even-numbered year. Gary forgot to renew his license. What happens now?

Gary's license is placed on inactive status.

Giles and Maddy both work at Hoover Realty. Giles has worked there for seven years, and Maddy's worked there for 10 years. Giles supervises the transactions of all the associated licensees. Which of the following is true?

Giles is the qualifying broker, and Maddy is an associate broker.

imbo doesn't yet have a real estate license. Which activity is he legally allowed to perform without one?

Give advice to a friend who is negotiating the purchase of a house.

Janice is interested in becoming an Alabama real estate broker. Which of these is a requirement she has to meet?

Have held an active salesperson license for at least 24 of the last 36 months

Damian, a salesperson, is interested in being a qualifying broker. Which of the following conditions does he NOT have to meet to make this change?

He has to have been an associate broker for at least three years.

Holly didn't complete her post-licensing education within six months, so she is now on inactive status. What will it mean for Holly if she doesn't complete the education within one year of her initial licensure date?

Holly's license will lapse.

Jasmine hasn't completed her CE requirements, and it's August 28 of an even-numbered year. Which of these options can she do?

If she can't finish her CE by the end of August, she can finish it by the end of September and pay a late renewal fee.

When applying for an Alabama broker license, under what circumstances can a salesperson continue to perform real estate activities?

If the broker license will be issued to the same company as the salesperson license

Georgina is an escrow agent who's holding funds for several transactions. Which of these statements about how she'll disburse these funds is true?

If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law.

To change his license status, Ennis has paid a $25 fee to the AREC. The two-year licensing period is almost over in Alabama, so he's quickly finishing his required 15 hours of CE before the deadline. He's also planning on completing 15 more hours of CE during the next licensing period. Ennis is changing his license status from _______ to _______.

Inactive to Active

Cecilia is an AREC commission member. Which of the following statements is true?

It's possible that she isn't a real estate licensee.

Valentia is getting ready to renew her real estate license. Beginning on what date can she renew online during the renewal period?

June 15

Karen is an Alabama salesperson who has just accepted a check from a client for earnest money. Which of the following is true?

Karen's qualifying broker is responsible for the funds she has just received.

Margot has been engaging in some shady real estate practices, but no one has filed a complaint against her. However, the Alabama commission hears about them. What options does the commission have?

Launch an investigation without a written complaint.

Which of the following statements about continuing education requirements is true for real estate salesperson licensees in Alabama?

Licensees must complete 15 hours of CE within their two-year licensure cycle.

In Alabama, hearings are typically held in which county?

Montgomery

Adele's received notice of a complaint and a request for a hearing from the Alabama commission. Where will her hearing most likely be conducted?

Montgomery County

How often must trust accounts be reconciled in Alabama?

Monthly

Adrian, an Alabama real estate salesperson, lives in a remote part of town. He jokes around that he lives so far out in the country, sometimes even his cows get lost. Can he work from a home office?

No, because he is a salesperson and not a broker.

AREC has just noticed that the amount of money in the Alabama Recovery Fund has dropped below $500,000. Can it impose a fee on an inactive licensee?

No, but it can have inactive licensees pay the fee when they reactivate.

Karen would like to sell her own home. What's the minimum real estate license she must possess?

None

What's one of the steps you need to take if you choose to affiliate with a different broker?

Notify the commission by certified or registered mail.

The Alabama commission is holding a hearing to investigate a complaint against Lucy. What actions is Lucy allowed to take at the hearing?

Produce evidence and cross-examine witnesses.

Trust funds have better protection when deposited into trust accounts because they are ______.

Protected from seizure

Which of the following is a true statement regarding qualifying brokers in Alabama?

Qualifying brokers are responsible for the actions of licensees who work under them.

Joe's a consumer who's been awarded a judgment for his real estate agent's misrepresentation on a sale. But the licensee is broke. What fund is available in Alabama to provide Joe relief?

Real Estate recovery fund

Which of the following is NOT a disciplinary action that the commission may take?

Require the licensee to leave the state.

Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money?

Rigby

If the commission finds that a licensee has committed serious crimes, it will likely _______ the individual's license.

Rovoke

Which of the following activities can a person without a real estate licence in Alabama?

Selling personally-owned property

The months are just flying by, as they seem to do, and Alabama licensee Audrey has yet to complete her annual CE requirement. Assuming this is an even-numbered year, by what date does she need to have her 15 hours of continuing education documented?

September 30

As an Alabama broker who lives in a rural area, Pam is allowed to work from a home office. Which of the following is true about her situation?

She must have a separate telephone number, entrance, and signage identifying it as a real estate office.

Julie is working with buyer clients and has prepared an estimated closing statement. Which of the following statements is true?

She must provide it when an offer is signed.

The commission placed Holly's license on inactive status because she didn't complete the 30-hour post-licensing education requirement within six months of receiving her temporary Alabama real estate license. What does this mean for her?

She'll need to complete the post-licensing education within one year of receiving her temporary license. In the meantime, she can't practice real estate.

If you don't complete your post-licensing education in your first _____ months of licensure, your temporary license is placed on inactive status.

Six

Dennis, a broker, has been accused of colluding with an appraiser to get kickbacks on fraudulent appraisals. He'll be appearing soon before AREC for their decision. Which of the following can AREC NOT impose as a penalty?

Six months' jail time

Where will you find official documentation about the licensing of real estate professionals?

State Laws and regulations

Which of the following statements about post-licensing education requirements is true for real estate licensees in Alabama?

Temporary active licensees must complete 30 hours of PLE within their first six months to receive an original license.

AREC is looking for a new commission member to fill the "consumer" slot. Which of the following people is eligible?

Terry, 43, who worked as a real estate licensee until he was 28. He now owns a small bakery in Tuscaloosa.

After an investigation and hearing, Jeremy was found guilty of violating license law. Against which entity would he submit an appeal?

The Alabama Real Estate Commission

In Alabama, which of the following statements is true about an estimated closing statement?

The client must sign it to acknowledge receipt.

The commission is investigating the actions and records of Alabama licensee Thomasina. Which of the following is true?

The commission can investigate Thomasina without a written complaint.

Which of the following event does NOT happen after a licensee files a notice of appeal and an appeal bond?

The commission files a formal written apology with the court if its judgment is not upheld.

AREC commission members Dale, Sherry, Jasmine, and Ted have convened to impose a penalty on a broker who's been found guilty of fraud. Which of these reasons could prevent them from doing this work?

The fact that only four members have convened, and there need to be at least five.

Which of the following is NEVER part of the complaint process?

The licensee receives a formal written reprimand.

Which of the following is true about trust funds in Alabama?

The qualifying broker is responsible for all trust funds received by all the licensees they supervise.

Hoover Realty lost its qualifying broker more than six months ago. The rest of the brokerage hasn't chosen a new one yet. What happens next?

The real estate commission will inactivate this company's license.

Qualifying brokers can also serve as associate brokers for a different brokerage under what condition?

The two brokerages share a location.

What are the main ways that license laws ensure consumer protection?

They establish requirements, define activities, and set standards.

What action may licensees take if they're unhappy with the commission's final decision on their hearing?

They may request a rehearing.

Moneys given for purchase deposits are ______.

Trust funds

In Alabama, which of the following practices related to trust funds is illegal?

Using trust funds held for one client to pay expenses for another client

In Alabama, when must an estimated closing statement must be provided to seller clients?

When an offer is presented

Adele's not at all happy with the commission's final decision on her hearing because she believes the commission is forcing her to sell off many of the assets of her brokerage. "Can it really do that?" Adele wonders. Does she have a reason to file an application for a rehearing?

Yes, because she has reason to believe that the commission acted outside its legal authority.

Dean was accused of writing a fraudulent contract. During his hearing, he brought a copy of the contract, and his lawyer demonstrated that it was legal. He was found guilty, and the commission never addressed his lawyer's points. Can Dean ask for a rehearing?

Yes, because the outcome was opposed to reliable evidence.

Clint has always had an interest in real estate. He's helped a few friends determine the asking price for their properties, and now he's considering going into business doing this kind of work. Will Clint need a real estate license?

Yes, he will.

What's the difference between a temporary and an original salesperson license in Alabama?

You get your temporary license when you pass your exam; you get your original license when you pass your PLE.

Which of the following is NOT a source of revenue for the Alabama Recovery Fund?

a 5% assessment on all licensee commissions for a month

Which area of real estate law covers the rights of ownership and tenancy, and the government's rights and authority under eminent domain?

general property law

Which area of real estate law covers the requirements of a licensee when performing real estate activities within the state, including continuing education requirements, supervisory requirements, and prohibited conduct?

real estate license law

At what level does real estate licensing take place?

state