Chapter 1 Quiz

According to Alabama law regardless of their relationship, all licensees have which obligation to all parties to a transaction?

To exercise reasonable care and skill.

A co-brokerage agreement with out-of-state broker must be filed with the Commission, within how many days of entering into an agreement?

10 days

How long does a licensee have to notify the Commission in writing about a change of personal address outside of the state of Alabama?

10 days

Students must attend _______ of the classroom course offering in order to be awarded continuing education credit.

100%

In order to be eligible to receive a real estate salesperson license in Alabama, the applicant must be how old?

19 years old.

What is the minimum age of the consumer member of the Alabama Real Estate Commission?

21

What is the fee for a temporary salesperson license?

$150

If a party wishes to appeal a decision by the Commission, how much is the cost of the appeal bond?

$200

When the balance remaining in the Recovery Fund falls below $500,000, each broker and salesperson must a fee of what amount to replenish the Recovery Fund?

$30

Any person who makes application for an original license as a broker or salesperson must pay how much for deposit in the Recovery Fund?

$30.00

How much is the initial Research and Education (ACRE) fee?

$30.00

How much is each commissioner paid each month while serving on the board?

$300 per month.

What is the maximum for payments for claims based on judgments or settlements against any one person from the Recovery Fund?

$50,000.00

Within how many days must the Commission render a written decision after a formal hearing?

30 days

How long is the required post-license course that every individual with a temporary salesperson license must complete?

30-hour

Students enrolled in the pre-license classroom course can receive a maximum of how many credit hours per day?

6

If an individual holds an original license in another state and wishes to earn a reciprocal Alabama real estate license, how many hours of Alabama law course work is required?

6 hours

What score must a pre-license student pass the final course exam to successfully complete the pre-license course and receive an approved certificate of completion?

70%

All prelicense or post-license students must attend _______ of the classroom course offering in order to be awarded credit.

90%

What will be served to begin any legal action against an accused licensee?

A copy of the formal complaint

Which of the following activities/situations require that a person be licensed as a real estate professional in Alabama?

A person locating or obtaining for rent, or lease any real estate on behalf of another that is not a spouse, parent or child for a fee

According to Alabama law, which of the following individual or activities is NOT required to have a real estate license?

A public officer performing his or her official duties.

A licensee working solely as a buyer's agent or as a seller's agents is an example of what type of agent?

A single agent

If a licensee who assists one or more parties without being an agent or fiduciary or advocate for that party, then he or she is acting as what type of agent?

A transaction broker.

Which of the following is a violation of Alabama real estate license law?

Acting for more than one party in a transaction without the knowledge and consent in writing of all parties for whom he acts.

The non-resident applicant applying for a license in Alabama must sign which of the following?

Affidavit

If there is a total of nine commissioners on the Board of Commissioners with a seat for each of the seven congressional districts and a consumer member, who is the last seat reserved for?

Black member

Those individuals holding current real estate salesperson licenses in other states may apply for a reciprocal salesperson license in Alabama under what circumstances?

By completing the Alabama reciprocal salesperson's application, paying the fee, and with a certificate of licensure from another state.

When an Alabama broker enters into a co-brokerage agreement with a broker from another state, the Alabama broker must do which of the following?

Determine that the out-of-state broker is licensed as a broker in another state.

What is the document provided by the Commission for optional use by licenses that explains the types of representation in available in Alabama?

The Alabama Consumer Information Booklet

If a subpoenaed witness fails to attend, or fails to produce subpoenaed documents or records, his attendance or the production of the documents will be enforced by which of the following?

Circuit courts

Which of the following is considered acceptable subject matter for continuing education courses?

Code of Ethics

In a transaction brokerage agreement, buyers and sellers are considered to be what with the licensees with whom they are working?

Customers, not clients

In Alabama, how often are real estate licenses renewed?

Every two years of the even-numbered years

In which of the following circumstances is the Recovery Fund obligated to pay?

For the negligent acts of a broker with an active license.

Which is the following in a requirement for the consumer member of the Commission?

Have been a resident and citizen of Alabama for at least 10 years prior

Aside from passing the state licensing exam, which of the following is a requirement for a temporary salesperson license in the state of Alabama?

Have proof that they have successfully completed the 60-hour Salesperson Pre-License course.

Which of the following is true of a qualifying broker?

He has a great deal of supervisory responsibilities for the activities of those licensed under him.

A broker can serve as the qualifying broker for a salesperson or associate broker only if what criteria is met?

He is in a position to actually supervise the real estate activities of the associate broker or salesperson on a full-time basis.

When an Alabama licensed broker enters into a co-brokerage agreement with a broker of another state, which of the following is true?

He is liable for all acts of the out-of-state broker, as well as for his own acts.

If the Commission makes a payment from the Fund for a licensee, what must the person pay in order to get a new license issued?

He must pay the amount paid out from the Fund, plus an interest rate of 12% a year.

Under what circumstance can a broker act as a qualifying broker for a real estate company and a vacation timeshare company?

If both companies are located at the same physical address.

What type of listing that stipulates a net price to be received by the owner with the excess due to be received by the broker as her commission?

Net listing

Under which circumstance(s) can a licensee who completes a continuing education course in another state receive credit in Alabama?

If the courses are to be counted as elective continuing education credit in Alabama.

Which of the following determines the amount to be paid by the Recovery Fund to an aggrieved party?

The court

If the Commission must pay any amount from the Recovery Fund in settlement of a claim or toward satisfaction of a judgment against a licensee, what will be the status of the license?

It will be terminated by the Commission.

If a temporary license holder does not complete the required 30-hour post-license course within one year of license issuance, what will happen to his or her temporary license?

It will expire and lapse.

If the Commission makes a determination of hardship for a lapsed license, which of the following is true?

The person must still pay all fees and penalties.

An agency relationship in which the real estate brokerage company represents both the buyer and the seller in the same real estate transaction is known as?

Limited consensual dual agency.

What is the maximum number of continuing education credit a licensee can earn in one day in a classroom?

Nine hours

Seth Salesperson is licensed as a real estate salesperson in Georgia, and now is relocating to Birmingham, Alabama, where he wants to be a broker. When he submits his application for a broker's license, what other requirements must he meet?

Proof that he has had an active real estate salesperson's license in his former state for at least 24 months of the 36-month period immediately preceding the date of application.

What is the act designed to education consumers about the types of brokerage services available from real estate companies in Alabama?

Real Estate Consumers Agency and Disclosure Act.

What is the name of the fund used as a source from which an aggrieved party may recover actual or compensatory damages as a result of conduct of a broker or salesperson that has violated certain real estate laws or the rules and regulations of the Commission?

Real Estate Recovery Fund

What is the final deadline for renewing licenses in Alabama for salespersons, brokers and companies?

September 30 of the even-numbered years

What type of licensee is engaged by and represents only one party in a real estate transaction?

Single agent

Alabama law states, all fees, fines, or other money collected by the Commission must be deposited in the _____________________ to the credit of the Real Estate Commission Revenue Fund.

State Treasury

The instructor must report credit for the students who successfully complete a continuing education course to the Commission via the Commission's electronic submission program within how many days of course completion?

Ten

All approved schools and instructors teaching real estate courses must agree to be governed by rules and regulations adopted by

The Commission

Which of the following is true regarding a transaction brokerage agreement?

The basic function of the real estate licensee in these cases is to bring buyers and sellers together so that a real estate sale can be completed.

Alice Ash is an elderly woman who has been advised by a family friend to sign a dual agency agreement, but in her conversations to the licensee, the licensee feels a single agency agreement would better serve Alice Ash's needs. Which of the following would be the best action for the licensee to take?

The licensee should hand her a copy of the Consumer Information Booklet, and point out, in particular, the section on Consensual Dual Agency. He should have her read that, and then the information on Single Agency. He should encourage questions and provide Alice with clear answers.

Which of the following is true of the Alabama Real Estate Commission?

The members are appointed with the advice and consent of the Senate.

The executive director and assistant executive director of the Commission are chosen based on what criteria?

Their education, experience, and skills in both administration and management.

Individuals wishing to apply for an Alabama reciprocal license must meet all of the following requirements EXCEPT?

Undergo an interview with the commission chair.

In which of the following activities is an individual NOT required to have a real estate license in the state of Alabama?

Working as a time-share seller and performing an act consistent with that license.

What must a licensee obtain in order to represent both the buyer and the seller in the same real estate transaction?

Written consent via a limited consensual dual agency form

Under what circumstances could a licensee be held liable for providing false information to a party in a real estate transaction?

When the licensee knew the information was false.

How soon must a licensee notify the Commission after he receives notice of a civil complaint against her regarding the goodwill of an existing real estate business?

Within 10 days

After passing the state licensing exam, how long does the individual have to apply for a temporary license?

Within 90 days

According to Alabama license law, all offers to purchase must contain what type of clause prominently displayed in the contract?

agency disclosure

In a real estate company in Alabama, if an individual with a broker license is not serving as the qualifying broker, how is his or her position in the company described?

associate

According to Alabama license law, how often must the qualifying broker explain the office RECAD policy to all of his licensees?

at least once a year.

An individual may offer to sell, exchange, purchase, rent, or lease real estate without a real estate license for all of the following parties EXCEPT?

aunt

An applicant whose license has been revoked

can only be re-licensed with the Commissioners' approval.

If a company or broker maintain more than ONE place of business in the state, there must be a company license for which of the following?

each separate location or branch office.

How many total hours of continuing education must each licensee complete for each license renewal period?

fifteen

A licensee, who has satisfactorily completed the post-license course and whose original license has been issued, will not be subject to the continuing education requirements for the__________ renewal of his or her original license.

first

How long is a full term of an Alabama commissioner?

five years

If a licensee changes qualifying brokers, his license remains in what status until it has been issued by the Commission to his new qualifying broker?

inactive

If the 30-hour post-license course is not completed within the 6-month period, the status of the temporary license certificate will automatically be switched to what by the Commission?

inactive status

Each license certificate must be

kept by the qualifying broker.

A licensee who is a nonresident of Alabama is not allowed to act except in cooperation with a(an) ___________ of the state.

licensed broker

What is a licensee that represents both the buyer and seller in the same real estate transaction in Alabama referred to as?

limited consensual dual agent

According to Alabama license law, the use of the Real Estate Brokerage Services Disclosure (RECAD) form in Alabama is _________?

mandatory

Licensees owe the following services to their clients, disclose all information the licensee knows that is_________________ to the transaction and not discoverable by the client through reasonable investigation and observation.

material

For the Commission to reject an applicant for an act involving moral turpitude, the act

may constitute a misdemeanor or felony.

The Alabama Real Estate Commission consists of how many members?

nine

Use of the Consumer Information Booklet by licensees is which of the following according to Alabama license law?

optional

Copies of all records and documents in the office of the Commission that are duly certified and authenticated by the________of the Commission can be received in evidence in all courts equally.

seal

When an aggrieved person decides to begin an action for a judgment, which may result in collection from the Recovery Fund, this person must do which of the following?

send a notice of this to the Commission by certified mail.

What is the passing grade for the salesperson state licensing exam?

seventy percent.

What is a licensee that has agreed to represent a broker from ANOTHER company in an effort to complete a successful real estate transaction referred to as?

sub-agent

The person who acts for and helps another broker in performing brokerage services for a client, or principal is known as a

sub-agent.

Once the Commission (by court order) has paid from the Recovery Fund any sum, the Commission is _______________ to all the rights of the judgment creditor.

subrogated

Remember, post-license credit cannot be earned prior to obtaining an Alabama _________________, according to Alabama law.

temporary license

How many years of previous real estate licensure are the congressional members and Black member required to have according to Alabama License Law?

ten

If an individual with a current Alabama licensee moves to and becomes a resident of the state, he must notify the Commission within how many days?

ten

Within how many days when transferring a license must all necessary forms and fees must be submitted, completed and paid to the Commission, or the attempted transfer will be considered null and void?

ten days

Prior to being appointed as a commissioner, what is the minimum Alabama residence requirement according to Alabama License Law?

ten years

Sub-agents are licensees empowered to act for another broker in performing real estate services for that broker. Sub-agents owe duties to the broker's client ____________ the broker.

the same as

How many consecutive terms may a commissioner serve according to Alabama License Law?

two