Alabama State Practice Exam- 2
Under RECAD, if operating as a single agent, a licensee may act as what? A) A buyer's agent or a seller's agent B) A limited consensual dual agent C) A seller's agent only D) A transaction broker
A) A buyer's agent or a seller's agent
Which of these is an example of a real estate violation? A) A licensee didn't inform all parties that she was the listing agent. B) A licensee discussed using a three-month period for her new listing with a seller. C) A licensee negotiated a listing agreement ending date so that his agreement would end after a home would typically sell in the current market. D) A licensee told his new seller clients that he typically uses a six-month term for all of his listings.
A) A licensee didn't inform all parties that she was the listing agent.
Who's required to take 30 hours of post-license education during their first six months after getting an initial license in Alabama? A) Active temporary licensees B) Brokers C) Inactive temporary licensees D) Managing partners
A) Activity temporary licensees
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? A) Co-brokerage B) Managing brokerage C) Parallel transaction D) Reciprocal licensing
A) Co-Brokerage
Mandatory topics for continuing education during each licensing period in Alabama include risk management and ______. A) Commission-approved courses B) Homebuyer programs C) Mortgage laws D) Real estate financing
A) 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? A) Complete six hours of Alabama pre-licensing education. B) Pass the licensing exam with a score of 85% or better. C) Provide approval from his Tennessee broker. D) Submit a completed consent to service of process form.
A) Complete six hours of Alabama pre-licensing education.
A licensee must perform which of the following tasks for a buyer client? A) Ensure the buyer understands the importance of due diligence, including a professional inspection of the property. B) Review the seller's property disclosures and show the buyer the ones that you believe are important. C) Show the buyer properties that you are listing for other sellers. D) Tell the buyer how much earnest money she should put down to ensure the deal goes through.
A) Ensure the buyer understands the importance of due diligence, including a professional inspection of the property.
Isabelle decided to take her career in a different direction and didn't renew her license when her renewal deadline came around. What is her license status? A) Expired B) Inactive C) Lapsed D) Revoked
A) Expired
It's September 5 of an even-numbered year. Tobias hasn't renewed his broker's license yet. Which of the following is true? A) He needs to pay a late fee if he renews by September 30. B) He needs to take 10 hours of CE to renew his license. C) If he doesn't renew his license by September 15, it becomes inactive. D) When he does renew his license, it will be a salesperson's.
A) He needs to pay a late fee if renews by September 30.
It's October 1 of an even-numbered year, and Candace hasn't completed her CE requirement. Which of the following is true? A) Her license is now inactive, and she has to reactivate it before she can practice real estate in Alabama. B) She can apply to AREC for a six-week extension and complete her CE within that timeframe. C) She has to complete her CE requirements as well as five more hours in a class of her choosing by December 31, or her license will become inactive. D) She must finish her CE and pay a late fee by October 31 to keep her license active.
A) Her license is now inactive, and she has to reactivate it before she can practice real estate in Alabama.
Jasmine hasn't completed her CE requirements, and it's August 28 of an even-numbered year. Which of these options can she do? A) 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. B) She can apply for an extension to her license renewal, so she has time to complete her CE. C) She doesn't have to complete her CE requirement in order to renew her license, as long as she's started it. D) She must finish her CE and apply for her license by August 31; otherwise, her license is placed on inactive status.
A) 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.
What happens to the company license if the qualifying broker dies or becomes incapacitated? A) It becomes invalid. B) It expires after 30 days. C) It must be re-issued. D) It remains active until September 30 of the following year.
A) It becomes invalid
Which of the following is an example of commingling? A) Mixing earnest money with personal funds B) Mixing two earnest money deposits C) Paying licensee bonuses from forfeited escrow deposits D) Using escrow funds to pay business expenses
A) Mixing earnest money with personal funds
What's one of the steps you need to take if you choose to affiliate with a different broker? A) Notify your broker. B) Obtain approval from the governor's office. C) Receive approval from the commission. D) Wait one year after your temporary license is issued.
A) Notify your broker
Patty is writing an online ad for several condos she's selling. "More than 3,000 square feet!" she writes. She's pretty sure that this is the average size of the condos. She included her brokerage firm and her license status on the advertisement, as well. How did Patty do? A) Patty could be held responsible for misrepresentation if her estimate is incorrect. B) Patty could be responsible for fraud if her estimate is incorrect. C) Patty should not have included the name of her brokerage in the advertisement. D) Patty wrote the ad correctly.
A) Patty could be held responsible for misrepresentation if her estimate is incorrect.
Which of the following statements about post-licensing education requirements is true for real estate licensees in Alabama? A) Temporary active licensees must complete 30 hours of PLE within their first six months to receive an original license. B) Temporary active licensees must complete 60 hours of PLE within their first year to receive an original license. C) Temporary inactive licensees are exempt from PLE until after the first renewal period. D) Temporary inactive licensees must complete 40 hours of PLE within their two years to receive an original license.
A) Temporary active licensees must complete 30 hours of PLE within their first six months to receive an original license.
Appeal notices are typically filed in the circuit court of Montgomery County, along with a ______ appeal bond. A) $100 B) $200 C) $300 D) $500
B) $200
Renee is interested in becoming a licensed real estate professional in Alabama. To qualify, how old must she be? A) 18 B) 19 C) 20 D) 21
B) 19
Which of the following would be illegal for an Alabama licensee to receive for helping a seller client close on a real estate transaction? A) A card saying thank you from the client B) A cash rebate from the seller C) A favorable email from the buyer's agent D) Verbal compliments from the qualifying broker
B) A cash rebate from the seller
The ______ enforces Alabama real estate rules and regulations. A) Alabama Licensing Authority B) Alabama Real Estate Commission C) Department of Justice D) State Licensing Bureau
B) Alabama Real Estate Commission
Which one of the following statements about real estate licenses is true? A) All real estate professionals have the same type of license. B) Before you can legally perform any activities that licensed real estate professionals perform, you must have your real estate license. C) Having a real estate license means you can legally draft a contract. D) Real estate licenses do not expire; consequently, there is no requirement to renew them.
B) Before you can legally perform any activities that licensed real estate professionals perform, you must have your real estate license.
Which of the following statements about real estate licenses in Alabama is true? A) All real estate professionals have the same type of license. B) Before you can legally perform any of the same activities that licensed real estate professionals perform, you must have your real estate license. C) Having a real estate license means you can legally draft a contract. D) Real estate licenses do not expire; consequently, there is no requirement to renew them.
B) Before you can legally perform any of the same activities that licensed real estate professionals perform, you must have your real estate license.
Daniel has several properties listed around town. He receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. What should Daniel do? A) Assume the buyer understands that Daniel is the seller's agent. B) Disclose his agency relationship with the seller to the prospective buyer. C) Refer any questions about the property to the seller. D) Schedule the showing.
B) Disclose his agency relationship with the seller to the prospective buyer.
Which of these tasks must a licensee perform for buyer clients? A) Advise the buyer on how to get the seller to come down on the asking price. B) Ensure that the buyer receives copies of all signed paperwork. C) Explain to the buyer how to deposit the earnest money into the seller's personal checking account. D) Explain to the buyer that there's really no need to review transaction documents because they're all standard.
B) Ensure that the buyer receives copies of all signed paperwork.
The funds placed in trust accounts are insured by the ______. A) AARP B) FDIC C) NAIC D) WNBA
B) FDIC
Abigail doesn't want the lenders to know that she's the buyer in a real estate transaction, so she's using her aunt's name and credit information to obtain the loan. Which type of mortgage fraud scheme is this an example of? A) Equity skimming B) False identity C) Property flipping D) Wire transfer fraud
B) False Identity
For which of the following actions can the Alabama Real Estate Commission impose a penalty on licensee Joseph? A) Disclosing possible conflicts of interest B) Falsely promising his customer that she wouldn't have to pay closing costs C) Reassigning his listings and taking a leave of absence D) Renewing his license 10 days late
B) Falsely promising his customer that she wouldn't have to pay closing costs.
Licensees may be disciplined for violating Alabama compensation laws. Which of the following are possible penalties for doing so? A) Fines, license suspension, jail time B) Fines, license suspension, license revocation C) Fines, probation, jail time D) Probation, jail time, license revocation
B) Fees, license suspension, license revocation
Ronald doesn't have a real estate license. Which of the following acts can he complete? A) Accept a commission B) File paperwork C) Host an open house D) Present an offer
B) File paperwork
Alabama has a commission that handles real estate license laws. Which of the following situations falls outside the authority of this organization? A) Cameron gave a check for his closing costs to his real estate agent, Mia, and just found out that Mia doesn't actually have a license. Mia's skipped town with his money. B) Frances wants to build a third story onto her house in Mobile, but she doesn't know if her town allows this. C) Phoebe is upset because she's just found out that her real estate agent was imprisoned for fraud only three years ago. D) Vinnie is pretty sure that his real estate agent Mitchell has broken a contract the two of them made.
B) Frances wants to build a third story onto her house in Mobile, but she doesn't know if her town allows this.
Which area of real estate law covers the rights of ownership and tenancy, and the government's rights and authority under eminent domain? A) Contract law B) General property law C) Law of agency D) State-specific license laws
B) General Property Law
Chester is moving on up! He and his wife are ready to sell their condo and purchase a new place. Chester is a real estate licensee and will list the property himself. What must Chester disclose to prospective buyers? A) Chester doesn't need to disclose anything to buyers. B) He owns the property. C) The sellers are eager to sell. D) The sellers will not accept any offers below $300,000.
B) He owns the property
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? A) Holly can pay $300 to the commission to reinstate her license. B) Holly's license will lapse. C) Holly will need approval from the Alabama Association of REALTORS® to activate her license. D) Holly will need to have her broker submit a notarized statement allowing her to activate her license.
B) Holly's license will lapse.
When Alabama salespersons receive a check for earnest money from a buyer client, what must they do with it? A) Immediately forward it to the title company. B) Immediately turn it over to their qualifying broker. C) Make a copy of the check and email it to the buyer's agent. D) Take a photo of the check that shows a timestamp of when it was received.
B) Immediately turn it over to their qualifying broker.
Cecilia is an AREC commission member. Which of the following statements is true? A) If she's the chairperson, she must an attorney. B) It's possible that she isn't a real estate licensee. C) She must have been involved in real estate for the past 15 years. D) She will serve a three-year term.
B) It's possible that she isn't a real estate licensee.
Which of the following statements about licensee compensation in Alabama is true? A) Licensees may only receive compensation for real estate services from consumers. B) Licensees may only receive compensation for real estate services through their qualifying broker. C) Licensees may only receive compensation for real estate services through the listing agent's broker. D) Licensees may receive compensation for real estate services through their broker, through the listing agent's broker, or from consumers.
B) Licensees may only receive compensation for real estate services through their qualifying broker.
Which of the following is NOT a disciplinary action that the commission may take? A) Impose a fine of $300 B) Require the licensee to leave the state C) Require the licensee to take continuing education D) Revoke the license
B) Require the licensee to leave the state
Alabama law requires licensees to disclose personal interest before acting on behalf of themselves or certain individuals with whom the licensee has a personal relationship. Which of the following must Alabama licensee Ross disclose to a seller client? A) That he knows the other party to the transaction because it's his neighbor B) That he's acting on his own behalf to buy the house C) That he's helping an acquaintance write an offer on the house D) That he's told his former college roommate about the house, and he may make an offer
B) That he's acting on his own behalf to buy the house
Which of the following entities created the consumer information booklet? A) The Alabama Association of REALTORS® B) The Alabama Real Estate Commission C) The Alabama Real Estate Institute D) The National Association of REALTORS®
B) The Alabama Real Estate Commission
In a buyer agency relationship, whom does the licensee represent? A) Both the seller and the buyer B) The buyer C) The listing firm and the buyer D) The seller
B) The buyer
Which of the following events does NOT happen after a licensee files a notice of appeal and an appeal bond? A) The appellant files a complaint with the court. B) The commission files a formal written apology with the court if its judgment is not upheld. C) The commission files the case record with the circuit court. D) The court affirms, reverses, or modifies the commission's decision.
B) The commission files a formal written apology with the court if its judgment is not upheld.
What happens if a licensee is found guilty of a violation? A) The case is automatically moved to be heard in superior court. B) The commission may reprimand the licensee, revoke or suspend the license, or impose a fine. C) The licensee is subject to arrest. D) The licensee's license is automatically revoked.
B) The commission may reprimand the licensee, revoke or suspend the license, or impose a fine.
Lee is wondering if he really needs to complete his CE requirements during this licensing cycle. Which of these questions should you ask him to help him determine if he has to or not? A) "Are you a broker or a salesperson?" B) "Are you at least 60 years old?" C) "Have you held a reciprocal license for less than a year?" D) "Have you managed other licensees within the last six months?"
C) "Have you held a reciprocal license for less than a year?"
Which of the following statements about material facts is true? A) All material facts are related to physical conditions. B) All parties considering a property would regard each material fact in the same way. C) A material fact may have more or less effect on a buyer based on the buyer's needs and values. D) Material facts are only those that can be easily seen or discovered.
C) A material fact may have more or less effect on a buyer based on the buyer's needs and values.
Which of the following is true about license renewal notifications? A) AREC contacts all managing brokers in the state about license renewal during April of even-numbered years. B) AREC doesn't provide any renewal notifications. C) AREC mails renewal forms to licensees starting around July 15 of even-numbered years. D) AREC notifies licensees that they need to renew via text in May of every even-numbered year.
C) AREC mails renewal forms to licensees starting around July 15 of even-numbered years.
How does the Alabama requirement for licensing protect the public? A) By establishing a nation-wide standard that all licensees must adhere to B) By requiring all licensees to obtain a broker's license C) By requiring licensees to have certain education, training, and standards D) By requiring that real estate professionals have a degree in business
C) By requiring licensees to have certain education, training, and standards
How does the requirement for licensing protect the public? A) By establishing a nationwide standard that all licensees must adhere to B) By requiring all licensees to obtain a broker's license C) By requiring licensees to have certain education, training, and standards D) By requiring that real estate professionals have a degree in business
C) By requiring licensees to have certain education, training, and standards
How does the requirement that real estate professionals be licensed protect the public? A) By establishing a nationwide standard that all licensees must adhere to B) By requiring all licensees to obtain a broker's license C) By requiring licensees to have certain education, training, and standards D) By requiring that real estate professionals have a degree in business
C) By requiring licensees to have certain education, training, and standards
Which of these terms describes a situation in which a broker uses client trust funds without the client's permission? A) A reverse trust B) Commingling C) Conversion D) Transferrable interest
C) Conversion
Which of these circumstances are grounds for real estate license suspension in Alabama? A) Affiliating with a broker prior to licensure B) Applying for a license within six months of course completion C) Failing to notify AREC about a criminal conviction D) Submitting to fingerprinting and a background check
C) Failing to notify AREC about a criminal conviction
Where must trust accounts be secured? A) Business account B) Company safe C) Federally insured financial institution D) Personal account
C) Federally insured financial institution
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? A) Both Giles and Maddy are associate brokers. B) Both Giles and Maddy are qualifying brokers. C) Giles is the qualifying broker, and Maddy is an associate broker. D) Maddy is the qualifying broker, and Giles is an associate broker.
C) Giles is the qualifying broker, and Maddy is an associate broker.
The commission has suspended Greg's license. Which of the following is true? A) Greg may complete his current transactions, but is not allowed to sign any new clients while his license is suspended. B) Greg may continue to practice real estate as long as his qualifying broker acts as his co-broker. C) Greg may not practice real estate during the term of his suspension, which is set by the commission. D) Greg will never be allowed to practice real estate again in Alabama.
C) Greg may not practice real estate during the term of his suspension, which is set by the commission.
Ben has been a real estate licensee for two years. Which of these actions may provide grounds for the revocation of his license? A) He reports a fellow licensee's fraudulent activity to his broker. B) He's a witness in a first-degree murder trial. C) He's convicted of drunk driving. D) He's routinely late for showing appointments.
C) He's convicted of drunk driving
Which of the following statements about the Alabama Real Estate Brokerage Services Disclosure form is true? A) It creates an agency relationship between the licensee and consumer. B) It's a legal agreement between the licensee and consumer. C) It's informational and doesn't create a relationship between the licensee and consumer. D) It's optional for licensees to provide this form to consumers, but if it's provided and signed, it becomes a legal contract between the parties.
C) It's informational and doesn't create a relationship between the licensee and consumer.
Which of the following must be reported to AREC via certified mail within 10 business days? A) Connor received two parking tickets in one week. B) Dmitri changed his territory to a new part of town. C) Maxine had a pending criminal action against her, but it was dismissed. D) Polly's client accused her of taking too long to respond and wants to break their agency contract.
C) Maxine had a pending criminal action against her, but it was dismissed.
In advertising, ______ is essentially the same as committing fraud. A) A misstatement B) Fact bending C) Misrepresentation D) Puffing
C) Misrspresentation
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? A) Jefferson County B) Mobile C) Montgomery County D) Opelika
C) Montgomery County
How often must trust accounts be reconciled in Alabama? A) Annually B) Bi-weekly C) Monthly D) Weekly
C) Monthly
Rafael wants to be a real estate salesperson. He is 22 years old and a high school graduate. He has completed 50 hours of real estate coursework and has a broker friend who has agreed that Rafael can affiliate with him. Does Rafael qualify to take his exam? A) No, because he needs to be at least 24 years old. B) No, because Rafael has not yet affiliated with his broker friend. C) No, because Rafael needs 60 hours of coursework first. D) Yes, Rafael can take his exam.
C) No, because Rafael needs 60 hours of coursework first.
What's one of the steps you need to take if you choose to affiliate with a different broker? A) Give notice to the Alabama Association of REALTORS. ® B) Obtain approval from your existing broker. C) Pay the required transfer fees. D) Receive approval from the commission.
C) Pay the required transfer fees.
Non-trust funds, as long as they're not commingled with trust funds, are not bound by _______. A) Banking regulations B) International trade rules C) Real estate laws D) State laws
C) Real Estate Laws
Which of the following is a buyer's agent's task or duty? A) Advocating for the seller B) Negotiating for the seller C) Representing the buyer's interests D) Reviewing transactional documents with the seller
C) Representing the buyer's interests
Which of the following activities can a person do without a real estate license in Alabama? A) Manage property B) Performing a market analysis for a property C) Selling personally-owned property D) Sell real estate at an auction
C) Selling personally-owned property.
Closing day is finally here! As an Alabama qualifying broker, how much time does Amanda have to disburse all funds held in trust for the transaction? A) 10 days B) 30 days C) Seven days D) Three days
C) Seven Days
Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties? A) She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. B) She's a dual agent to the buyer and seller. C) She's an agent to Cintra, and the seller is her customer. D) The seller and buyer are her customers.
C) She's an agent to Cintra, and the seller is her customer.
Dean was very motivated to sell his house and was excited when he got an offer. When he realized the buyer couldn't qualify for the purchase price, he decided to accept a second mortgage without mentioning it to his lender and reduce the sales price accordingly. Which type of mortgage fraud scheme is this an example of? A) Inflated appraisal B) Property flipping C) Silent second D) Straw buyers
C) Silent second
In Alabama, which of the following statements is true about an estimated closing statement? A) It must be provided on the day of closing. B) Licensees aren't required to keep a copy in the files. C) The client must sign it to acknowledge receipt. D) The qualifying broker must sign it to acknowledge she prepared it.
C) The client must sign it to acknowledge receipt.
When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? A) The licensee isn't permitted to list other properties for sale. B) The licensee is permitted to list other properties for sale as long as they're not competing properties. C) The licensee is permitted to list other properties for sale, even if they're competing properties. D) The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties.
C) The licensee is permitted to list other properties for sale, even if they're competing properties.
Which one of the following is a true statement regarding temporary qualifying brokers in Alabama? A) They are appointed by the AREC when a qualifying broker dies or becomes incapacitated. B) They are appointed by the company president when a qualifying broker dies or becomes incapacitated. C) They are chosen by the company when a qualifying broker dies or becomes incapacitated and must apply for a temporary qualifying broker's license. D) They must have been a broker for at least five years.
C) They are chosen by the company when a qualifying broker dies or becomes incapacitated and must apply for a temporary qualifying broker's license.
Which of these is a broker's responsibility under RECAD? A) To be present when licensees enter into their first agency agreement B) To make sure that all licensees understand when RECAD was drafted into law C) To provide all licensees with a copy of the agency disclosure office policy D) To provide consumers with a verbal definition of "agency relationship"
C) To provide all licensees with a copy of the agency disclosure office policy
Jojo, a licensee, has just received her annual briefing about her brokerage's agency disclosure office policy. She then received a copy of the policy. Which of the following is her responsibility? A) To create her personal office policy that details which agency relationships she feels comfortable creating B) To help contribute to any future changes or revisions in the agency disclosure office policy C) To sign an acknowledgment saying that she has received and understands the written policy D) To tell any potential clients that if they need more information about allowed agency relationships, they should consult her managing broker
C) To sign an acknowledgment saying that she has received and understands the written policy
Tanya represents Marco, who's selling his condo. Dan is interested in buying it; his agent is Terryl. Tanya and Terryl work for the same brokerage. According to RECAD, is this arrangement allowed? A) No, because it's a conflict of interest. The two agents must work for different brokerages. B) No, because this is called sub-agency, and it's illegal in Alabama. C) Yes, as long as all parties give consent to this limited consensual dual agent situation. D) Yes, but only if Tanya and Terryl act as transaction brokers and not agents.
C) Yes, as long as all parties give consent to this limited consensual dual agent situation.
Travis, who's licensed in another state, has a client who's decided on a home in Alabama. Can he still work with that client? A) No, but he can still claim to do business there as long as he keeps it a secret. B) No, he can't practice real estate outside of the state in which he's licensed. C) Yes, as long as his state offers co-brokerage and he enters into a written co-brokerage agreement with an Alabama broker. D) Yes, of course! Once licensed he can practice real estate in any state.
C) Yes, as long as his state offers co-brokerage and he enters into a written co-brokerage agreement with an Alabama broker.
What's the difference between a temporary and an original salesperson license in Alabama? A) A temporary license lets you practice real estate while you study for your pre-licensing exam; once you pass, you get your original license. B) You get your original license when you pass your exam; you get your temporary license when you pass your PLE. C) You get your temporary license when you pass your exam; you get your original license when you pass your PLE. D) You must hold a temporary license for the first two years of your practice, and then you can convert it into an original one.
C) You get your temporary license when you pass your exam; you get your original license when you pass your PLE.
When labeling Alabama trust accounts, the term ______ must be used in the account title to properly identify them. A) "Brokerage" or "business" B) "Business" or "escrow" C) "Business" or "trust" D) "Trust" or "escrow"
D) "Trust" or "Escrow"
Suki, a licensee, is selling a house for the Swensen family. She's just gotten it on the market when Clark, a potential buyer, says that the roof looks new, and asks her when it was installed. Suki isn't sure. What should she say? "I bet it was installed in the last five or ten years, yes." "I know it was installed within this past year." "Why don't you ask my clients? The Swensens can tell you." "You know, let me look that up, and I'll get right back to you."
D) "You know, let me look that up, and i'll get right back to you.
What must you have to apply as a real estate salesperson in Alabama? ) A 90% or better on pre-licensing education exams B) A bachelor's degree C) A six-month reserve of operating funds D) A sponsoring broker
D) A sponsoring broker
Which body comprises appointed members who oversee license law in Alabama? A) Alabama Department of Commerce B) Alabama Division of Professional Licensing C) Alabama Division of Real Estate D) Alabama Real Estate Commission
D) Alabama Real Estate Commission
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? A) Apply for and receive an Alabama reciprocal license. B) Complete 10 hours of Alabama post-licensing education. C) Complete an online "Co-brokering in Alabama" course. D) Enter into a written agreement with an Alabama broker.
D) Enter into a written agreement with an Alabama Broker.
In most states, which of the following situations would most likely be grounds for suspension or revocation of a real estate license? A) Failure to determine the correct list price in a comparative market analysis B) Failure to find a buyer for a listed property C) Failure to include a broker protection clause in a listing agreement D) Failure to specify a definite termination date in a listing contract
D) Failure to specify a definite termination date in a listing contract
When it comes to contracts for sale or lease in Alabama, which of the following statements is true? A) It's illegal for real estate brokers to have a personal interest in contracts for sale or lease. B) It's illegal for real estate brokers to negotiate the price on contracts for lease, but not for sale. C) It's illegal for real estate brokers to receive a commission for contracts for sale or lease. D) It's illegal for real estate licensees to interfere with contracts for sale or lease.
D) It's illegal for real estate licensees to interfere with contracts for sale or lease.
Sandy is a new licensee. One of her recent clients, Phil, complained that she gave information to her customer that was confidential. Which laws can Sandy check to make sure that she didn't fail in her duties to Phil? A) Consumer protection laws B) General property law C) Landlord-tenant laws D) Law of agency
D) Law of Agency
Which of the following statements is true regarding the Alabama Real Estate Brokerage Services Disclosure form? A) It's optional for licensees to provide it to any consumer. B) It's used to form brokerage agreements between licensees and consumers. C) Licensees only need to provide it to consumers if there's a dual agency situation. D) Licensees should ask, but not require, that consumers sign to acknowledge its receipt.
D) Licensees should ask, but not require, that consumers sign to acknowledge its receipt.
Which of the following would disqualify an applicant from receiving an Alabama broker license? A) Being legally present in the U.S., but not a citizen B) Having a real estate license suspended in Alabama C) Having a real estate license suspended in another state D) Pleading guilty to or being convicted of a felony
D) Pleading guilty to or being convicted of a felony
Trust funds have better protection when deposited into trust accounts because they are ______. A) In an interest-bearing account B) Insured by the banking industry C) Insured by the depositor's private insurance D) Protected from seizure
D) Protected from seizure
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? A) She can allow other licensees to work from her home office. B) She can keep brokerage records at her home office. C) She isn't required to have signage at her home identifying it as a real estate office. D) She must have a separate telephone number, entrance, and signage identifying it as a real estate office.
D) She must have a separate telephone number, entrance, and signage identifying it as a real estate office.
Broker Jewel knows she must advocate on her client's behalf and put her client's interests ahead of any other party. What does this mean? A) She must put her client's interests ahead of those of all other parties, even if it means breaking the law. B) She must put her client's interests ahead of those of all other parties, unless her broker tells her otherwise. C) She must put her client's interests ahead of those of all other parties, without exception. D) She must put her client's interests ahead of those of other parties, unless doing so violates her duties to another party.
D) She must put her client's interests ahead of those of other parties, unless doing so violates her duties to another party.
Maya violated Alabama real estate license law. Which disciplinary action is NOT a possible penalty? A) Her license may be subject to suspension. B) Her license will be revoked and she'll be unable to practice real estate in the future. C) Her license will be suspended during which time she cannot practice real estate. D) She will not be able to take continuing education classes.
D) She will not be able to take continuing education classes.
Which one of these individuals needs a real estate license? A) An appraiser who is appraising real estate B) An attorney who is assisting a client in understanding a sales contract C) An individual selling his own home D) Someone performing real estate services for others for a fee
D) Someone performing real estate services for others for a fee
Which area of real estate law covers how an agency relationship is created and the duties of an agent to the principal? A) Contract law B) General property law C) State-specific license laws D) The law of agency
D) The law of agency
Which of the following is NEVER part of the complaint process? A) Someone fills out the complaint form on the commission's website. B) The commission investigates the complaint. C) The commission's legal counsel determines whether or not to take action. D) The licensee receives a formal written reprimand.
D) The licensee receives a formal written reprimand.
What are the main ways that license laws ensure consumer protection? A) They define standards, build education, and create recurring revenue. B) They establish requirements, assess fees, and build education. C) They establish requirements, assess fees, and create recurring revenue. D) They establish requirements, define activities, and describe standards of conduct.
D) They establish requirements, define activities, and describe standards of conduct.
Baker just closed a transaction with his seller client. How long must Baker keep the transactional records? A) 30 days B) 30 months C) Three months D) Three years
D) Three years
Which of the following statements about unlicensed assistants in Alabama is true? A) Unlicensed assistants can perform licensed activities under a managing broker's supervision. B) Unlicensed assistants can perform licensed activities under an affiliate broker's supervision. C) Unlicensed assistants can perform licensed activities under a sponsoring broker's supervision. D) Unlicensed assistants may not perform any activities for which a license is required.
D) Unlicensed assistants may not perform any activities for which a license is required.
A licensee who advises a seller client to break an existing contract to accept a better offer is ________________. A) Following the NAR Code of Ethics B) Performing a required service for the client according to Alabama real estate law C) Providing appropriate client service according to NAR and AREC D) Violating Alabama's license law
D) Violating Alabama's license law
Which of the following statements is true under RECAD in Alabama? A) Both the Real Estate Brokerage Service Disclosure form and the consumer information booklet are optional. B) Both the Real Estate Brokerage Service Disclosure form and the consumer information booklet are required. C) While licensees are required to use the consumer information booklet, use of the Real Estate Brokerage Services Disclosure form is optional. D) While licensees are required to use the Real Estate Brokerage Services Disclosure form, use of the consumer information booklet is optional.
D) While licensees are required to use the Real Estate Brokerage Services Disclosure form, use of the consumer information booklet is optional.
Michael's had quite a day. He forgot to get his client's signature on a contract, so he had to hunt her down and have her sign it. Then, he chatted with Sue, who wants him to represent her. He told her to come see him when her current agency agreement expires. Next, he realized he needed to pay some fees to the commission, so he put a check in the mail, crossing his fingers that there would be enough money in his checking account. Which of these actions, if any, could violate license law? A) Forgetting to get a client's signature B) None of these actions is a possible violation C) Trying to convince Sue to sign with him after her contract expires D) Writing a possibly bad check to the commission
D) Writing a possibly bad check to the commission
Each qualifying broker must explain the agency disclosure office policy, which specifies the types of agency relationships allowed, to licensees at least once every ______. A) Quarter B) Six months C) Two years D) Year
D) Year
Licensee Bert's seller client asks him not to tell prospective buyers that he's selling his house because he's lost his job and can't continue to afford the mortgage payments. Should Bert obey him? A) No, because although it's not illegal to keep this information confidential, it's unethical. B) No, because this is a material fact, and Bert must disclose material facts to all prospective buyers. C) Yes, because as the seller's agent, Bert must obey all of his client's instructions. D) Yes, because this is a lawful instruction, and this information should be kept confidential.
D) Yes, because this is a lawful instruction, and this information should be kept confidential.