REAL ESTATE EXAM STUDY ???

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. Any one claimant can claim as much as $50,000, but the limit for damages rewarded for any one transaction is $25,000. If Cheryl wants to claim $50,000, she'll need to file at least two complaints and have both judgments go her way.

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

Samuel is getting licensed in Alabama. What should he expect when it comes to fees the commission imposes in order to fund the real estate recovery fund?

1.Fee when getting licensed 2.Fee when account balance is low A new licensee can expect to pay a fee when obtaining a license and when the account balance of the fund is less than $500,000.

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

15. Licensees must request a hearing within 15 days of receiving notice of the violation, or the violation becomes final.

A seller filed a complaint against Jordan, the licensee who listed the seller's home earlier in the year. The commission found Jordan guilty of deceit and levied a $2,000 fine against him. Jordan's upset with this result. How many days does he have to file a notice of appeal?

30 days. An appellant may file a notice of appeal within 30 days after the commission renders its final order.

After passing the real estate exam, applicants must send their application for licensure to the commission within _____ days.

90 days

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 of these are the commission's additional responsibilities? Determine whether violations have occurred and impose penalties

A Responsibility

Which of these are the commission's additional responsibilities? Establish continuing educational requirements for real estate professionals

A Responsibility

Which of these are the commission's additional responsibilities? Issue broker and salesperson licenses

A Responsibility

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

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

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

Which of the following is true about license renewal notifications?

AREC mails renewal forms to licensees starting around July 15 of even-numbered years. AREC does notify licensees about the need for license renewals. It mails renewal forms around July 15 of even-numbered years.

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.

Javier allowed his salesperson's license to expire a few years ago, but now his life has taken a new direction, and he'd like to get back into real estate. The commission determined his situation didn't warrant a hardship. What actions will he need to take to have his license reinstated? Affiliate with a qualifying broker

Action Needed

Javier allowed his salesperson's license to expire a few years ago, but now his life has taken a new direction, and he'd like to get back into real estate. The commission determined his situation didn't warrant a hardship. What actions will he need to take to have his license reinstated? Pass pre- and post-licensing examinations with a minimum score of 70%

Action Needed

Javier allowed his salesperson's license to expire a few years ago, but now his life has taken a new direction, and he'd like to get back into real estate. The commission determined his situation didn't warrant a hardship. What actions will he need to take to have his license reinstated? Complete 60 hours of prelicensing coursework

Action Needed

Javier allowed his salesperson's license to expire a few years ago, but now his life has taken a new direction, and he'd like to get back into real estate. The commission determined his situation didn't warrant a hardship. What actions will he need to take to have his license reinstated? Request a waiver from the Alabama Association of REALTORS®

Action Not Needed

Sophie is legally allowed to practice real estate and collect compensation for doing so.

Active

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.

In addition to granting and renewing licenses, the Alabama Real Estate Commission promulgates rules and regulations and administers and enforces laws. For which of these activities does the commission administer and enforce laws? Licensed real estate activities

Administers and Enforces

In addition to granting and renewing licenses, the Alabama Real Estate Commission promulgates rules and regulations and administers and enforces laws. For which of these activities does the commission administer and enforce laws? Real estate violations and penalties

Administers and Enforces

In addition to granting and renewing licenses, the Alabama Real Estate Commission promulgates rules and regulations and administers and enforces laws. For which of these activities does the commission administer and enforce laws? Suspended licenses

Administers and Enforces

Some activities that real estate licensees perform are affected by license laws, and others are not. Which would likely be affected? Required experience? Affected or not affected?

Affected

Some activities that real estate licensees perform are affected by license laws, and others are not. Which would likely be affected? Ethical client interactions? Affected or not affected?

Affected

Some activities that real estate licensees perform are affected by license laws, and others are not. Which would likely be affected? Required education? Affected or not affected?

Affected

Important.

After a complaint is verified, the commission will notify both the broker and licensee, including whether there is a need for a hearing.

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

Alabama Real Estate Commission

Licensee

Alabama Real Estate Commission (AREC) defines licensee as "any broker, salesperson, or company."

Types of Licenses in Alabama

Alabama has two different types of real estate licenses: salesperson and broker. First, let's look at the difference between the two licenses, and then we'll review the eligibility, education, and experience requirements for earning your salesperson license.

How many hours of continuing education does Alabama require?

Alabama requires 15 hours of continuing education for salespeople and brokers.

Amy works under the supervision of Corinne at Rolling Hills Realty. Which of the following must be true?

Amy could be either a salesperson or a broker.

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

Be Honest!

Be honest when applying for a real estate license. Obtaining a license through fraud, deceit, or misrepresentation is a violation of Alabama license law.

Practices real estate independently, or supervises and mentors salespersons and associate brokers

Broker

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.

Which three license types must be renewed every two years?

Broker license Salesperson license License obtained through reciprocity

Travis has lived in this area a long time. He knows a lot about the history of the city, as well as the perks and downfalls of living in different sections of the city. Recently, he's had several friends approach him with requests to help sell their condos in a neighboring town, and then help them choose homes to purchase in the city. In return, they're offering to pay Travis $1,000 for his time and effort. Travis isn't currently licensed. Which of these actions can he perform for his friends? Scheduling showings for properties

Can Perform

Travis has lived in this area a long time. He knows a lot about the history of the city, as well as the perks and downfalls of living in different sections of the city. Recently, he's had several friends approach him with requests to help sell their condos in a neighboring town, and then help them choose homes to purchase in the city. In return, they're offering to pay Travis $1,000 for his time and effort. Travis isn't currently licensed. Which of these actions can he perform for his friends? Searching the Internet and driving the streets to locate properties for sale

Can Perform

Travis has lived in this area a long time. He knows a lot about the history of the city, as well as the perks and downfalls of living in different sections of the city. Recently, he's had several friends approach him with requests to help sell their condos in a neighboring town, and then help them choose homes to purchase in the city. In return, they're offering to pay Travis $1,000 for his time and effort. Travis isn't currently licensed. Which of these actions can he perform for his friends? Researching schools, crime rates, and other statistics about several neighborhoods

Can Perform

Travis has lived in this area a long time. He knows a lot about the history of the city, as well as the perks and downfalls of living in different sections of the city. Recently, he's had several friends approach him with requests to help sell their condos in a neighboring town, and then help them choose homes to purchase in the city. In return, they're offering to pay Travis $1,000 for his time and effort. Travis isn't currently licensed. Which of these actions can he perform for his friends? Listing his friends' condo for sale

Can't Perform

Travis has lived in this area a long time. He knows a lot about the history of the city, as well as the perks and downfalls of living in different sections of the city. Recently, he's had several friends approach him with requests to help sell their condos in a neighboring town, and then help them choose homes to purchase in the city. In return, they're offering to pay Travis $1,000 for his time and effort. Travis isn't currently licensed. Which of these actions can he perform for his friends? Negotiating the exchange of real estate

Can't Perform

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

Milt has had a temporary real estate license since April. Which of the following must he do to convert it to an original license?

Complete his post-licensing requirements by October.

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.

Consumer Protection Laws

Consumer protection laws are those established to ensure that the licensed professionals in a state treat consumers (including their customers and clients) with fairness. These laws (and their associated rules) are designed to protect consumers from unfair or unethical business practices, fraud, misrepresentation, and more. In real estate, the state real estate commission or department is often charged with one primary duty: ensuring that the professionals it licenses have the appropriate degree of professionalism, education, and training, as well as strong moral character and a history free of crimes involving moral turpitude and/or felony convictions before those professionals are granted their real estate licenses.

In addition to granting and renewing licenses, the Alabama Real Estate Commission promulgates rules and regulations and administers and enforces laws. For which of these activities does the commission administer and enforce laws? Appraisal activities

Does Not Administer or Enforce

Homer and Marge decide to sell their vacation home as a For Sale by Owner because the market is hot. They already know plenty of potential buyers and don't need an agent to market their home.

Doesn't Require a License

Jamie has been appointed as executor of Justin Willis's estate. Justin recently passed away, and Jamie is tasked with selling his property.

Doesn't Require a License

Kurt's personal assistant, Goldie, calls on his behalf to set appointments for showings.

Doesn't Require a License

Indicate whether each item is or is not a duty of a qualifying broker in Alabama. Display all company and branch office licenses

Duty

Indicate whether each item is or is not a duty of a qualifying broker in Alabama. Display the licenses of all licensees at the place of business

Duty

Indicate whether each item is or is not a duty of a qualifying broker in Alabama. Ensure licensee activities/transactions comply with license law

Duty

Indicate whether each item is or is not a duty of a qualifying broker in Alabama. Oversee transactions of all licensees

Duty

Which statement is true about licensing authorities?

Each state has its own licensing authority.

Important.

Earning your temporary Alabama real estate license is only the first step. The next step is to complete post-licensing education so you can receive your original license. The hardest part about completing post-licensing education is remembering the deadline. Let's take a look at exactly what you need to do.

What's the chief function of licensing laws?

Ensure that consumers are protected

Roger didn't pay his renewal fees and doesn't practice real estate anymore, but he could ask to have his license reinstated.

Expired

A broker bears no responsibility for the actions of affiliated licensees.

False

As long as you are actively pursuing your real estate license, you can legally perform the same activities that licensed real estate professionals perform. True or False

False

Ashley has barely had her salesperson's license for a year, and her broker is already asking her to start working through her renewal requirements. Review these statements about license renewal in Alabama and determine whether they're true or false. Failure to renew by her license expiration date results in her license being permanently terminated.

False

If a non-licensed person wishes to sell his home on his own, he must obtain a real estate license.

False

Provide a DNA sample during the criminal record check.

False

Sophia has decided to take a break from real estate, so she didn't renew her license and now it's on inactive status. She's still required to complete her CE while on inactive status.

False

Take your licensing exam while you're completing your pre-licensing course work.

False

The commission recently got wind that Adele, a real estate licensee in Birmingham, has not been fully forthcoming on several of her transactions. In fact, she may be guilty of misrepresentation. After a brief investigation (that was all it took), the commission decided to hold an administrative hearing. Which of these statements about this administrative hearing are true? Subpoenaed witnesses can refuse to show up or testify.

False

You must wait one year to change your broker.

False

Which of these statements are true about license laws, and which are false? Professional associations determine which activities are affected by state licensing laws.

False. Because each licensing authority determines which activities require a real estate license.

Which of these statements are true about license laws, and which are false? Real estate professionals are licensed at the federal level.

False. Because each state has its own licensing authority.

Leticia moved from Huntsville to Mobile. Since she moved more than 250 miles, she is exempt from CE requirements for one year.

False. A change of address doesn't make Leticia exempt from CE requirements.

Can you tell which of these statements about complaints are true and which are false? The commission can't investigate a licensee until someone files a written complaint.

False. Actually, the commission can investigate licensees even without a written complaint.

The disciplinary process usually begins with someone filing a complaint with the commission. Can you tell which of these statements about complaints are true and which are false? The commission can't investigate a licensee until someone files a written complaint.

False. Actually, the commission can investigate licensees even without a written complaint.

The commission recently got wind that Adele, a real estate licensee in Birmingham, has not been fully forthcoming on several of her transactions. In fact, she may be guilty of misrepresentation. After a brief investigation (that was all it took), the commission decided to hold an administrative hearing. Which of these statements about this administrative hearing are true? At least five days' notice of the hearing's details is required.

False. At least 15 days' notice is required.

If a licensee has his license revoked, he can still perform real estate activities.

False. If a license is revoked, it's taken away. If the licensee performs real estate activities while his license is revoked, he'll find himself in more trouble with the commissioner.

Revocation periods are for no more than one year.

False. If a licensee has her license revoked, she must wait at least one year before applying for reinstatement, but the revocation period can last longer at the commissioner's discretion.

Applicants for a broker license will receive their licenses directly.

False. In Alabama, licenses are issued to their affiliated company, not directly to licensees.

Ashley has barely had her salesperson's license for a year, and her broker is already asking her to start working through her renewal requirements. Review these statements about license renewal in Alabama and determine whether they're true or false. If Ashley doesn't receive a renewal notice from the commission, she will receive a reminder to renew.

False. It's the licensee's responsibility to contact the commission by August 10 if she doesn't receive a renewal notice.

Can you tell which of these statements about complaints are true and which are false? Once the investigative staff has investigated the complaint, the next step is to take the licensee to court.

False. Next, the investigative staff creates a report, which goes to legal counsel. They determine whether they need to take action against the licensee.

The disciplinary process usually begins with someone filing a complaint with the commission. Can you tell which of these statements about complaints are true and which are false? Once the investigative staff has investigated the complaint, the next step is to take the licensee to court.

False. Next, the investigative staff creates a report, which goes to legal counsel. They determine whether they need to take action against the licensee.

Reciprocal licensees must complete the Alabama real estate temporary license requirements.

False. Reciprocal licensees aren't required to complete the temporary license requirements imposed on new licensees.

Ashley has barely had her salesperson's license for a year, and her broker is already asking her to start working through her renewal requirements. Review these statements about license renewal in Alabama and determine whether they're true or false. To avoid a penalty, she must submit her application, fees, and proof of meeting the CE requirements by September 10.

False. The renewal deadline is August 31.

When a licensee is found guilty of violations, the commission may impose a fine between $100 and $200.

False. This is definitely fiction. The fines can go as high as $2,500 and be combined with possible suspension.

As long as they've passed the broker examination, they can continue to practice real estate.

False. When applying for a broker license, licensees can only continue to practice real estate under specific conditions.

If you're licensed in any other state, you may practice real estate in Alabama with no additional requirements.

False. You may not practice real estate in Alabama without an Alabama real estate license. Applicants licensed in another state will need to follow the Alabama reciprocal licensing requirements.

If licensees disagree with any disciplinary sanctions imposed by the Alabama commission, what one option do they have?

File a notice of appeal with the circuit court.the only option is to appeal at the circuit court level.

Rehearing a Decision Charlene filed a complaint against her broker for breach of confidentiality. She's not satisfied with the Alabama commission's decision. What options does Charlene have?

File an application for a rehearing within 30 days. Right. Charlene could file an application for a rehearing. It must be done within 30 days but can only be requested under certain conditions. A lack of a response from the commission within 30 days indicates that the application has been denied.

If a candidate is unsure of her eligibility for an Alabama real estate license due to a prior felony conviction or crime involving moral turpitude, what can she do to verify her eligibility?

File for a Determination of License Eligibility

Important

Fines, fees (except those used to fund the Real Estate Recovery Fund), and any other money that the commission collects goes into the Real Estate Commission Revenue Fund. The money is deposited in the state treasury, and the state comptroller disburses it at the commission's direction. The money is generally used in the year in which it was collected to pay expenses that the commission incurs to perform its duties.

Covers the forms of ownership and tenancy in real property, and its distinction from personal property within the common law legal system.

General property law

Covers the government's rights and authority under eminent domain

General property law

Covers the rights of ownership and tenancy

General property law

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

What four specific areas does real estate law cover?

General property law State-specific license law Law of agency The law of contracts

General Property Law

General property law covers the forms of ownership and tenancy in real property, and its distinction from personal property within the common law legal system. It also covers the rights of ownership and tenancy and the government's rights and authority under eminent domain and various police powers.

It's October 1 of an even-numbered year, and Candace hasn't completed her CE requirement. Which of the following is true?

Her license is now inactive, and she has to reactivate it before she can practice real estate in Alabama.

Ashley can expect what three things to happenif she misses the deadline to renew her license?

If Ashley's renewal is postmarked between September 1 and September 30 she will have to pay a late fee. Ashley's license will be placed on inactive status on October 1 if she doesn't renew her license in time. Ashley will not be able to practice real estate until her license is reactivated.

Important

If the qualifying broker dies or becomes incapacitated, the company license becomes invalid. That's when a temporary qualifying broker would step in—after applying for the license, of course!

Important

If your license expires, you can ask to have it reinstated by the commission due to a hardship. If your request is denied, you'll have to start from scratch as if you were never licensed.

Ricky paid his renewal fee but forgot to complete his CE requirements, so he isn't allowed to practice real estate.

Inactive

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

June 15

License laws can be actual laws, or they may be regulations with the force of law. What's the difference between a law and a regulation? Begins as legislation proposed by and voted into effect by a state legislature; also called a statute Law or Regulation?

LAW

Landlord-Tenant Laws

Landlord-tenant laws are those that—not surprisingly—address the landlord-tenant relationship. They establish everything from the duties and responsibilities of each party to the state laws for handling lease agreements to fair housing considerations for tenants and other tenants' rights issues.

Landon wants to transfer his license from his current managing broker, Daria, to a new managing broker, Roy. Landon has had his real estate license for 10 months. Which of the following is true about his situation?

Landon must inform Daria of his decision to transfer to a new managing broker.

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.

Covers how an agency relationship is created.

Law of agency

Covers the duties of an agent to the principal

Law of agency

Real estate law covers specific areas. These are:

Law of contracts General property law Law of agency State-specific license laws Landlord-tenant laws Consumer protection laws

Important.

License laws establish basic requirements for the profession. They also outline which activities require a license and standards of conduct for licensees.

What's a possible penalty for committing fraud, intentionally misrepresenting information, or using deceitful methods?

License suspension

Serious violations of the real estate license laws typically result in which disciplinary action or actions?

License suspension or revocation

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

Brenda is an Alabama broker who lives in the bustling city of Birmingham. Even though it's a short distance, her commute in the city is more than an hour door-to-door, and she'd like to work from a home office. According to Alabama license law, can she do this?

No. Only brokers who live in rural areas are allowed to work from a home office. Since Brenda lives in the city, she must maintain an office in the city. The real estate commission does consider hardship cases on a case-by-case basis, though.

Reciprocal License Continuing Education Requirements Daisy got her Alabama reciprocal real estate license nine months ago and provided her licensing history to the commission. Is she required to complete continuing education?

No. Daisy doesn't need to complete CE requirements if she provides documentation to the commission that the license she earned in her home state is in good standing.

Sadly, Merrimac Realty has just lost its qualifying broker in a car accident. The firm has 30 days to choose a qualified candidate as a temporary qualifying broker. Indicate whether each of the following licensees is qualified to serve as a temporary qualifying broker. Gayle, who has been a salesperson for six months

Not Qualified

Brenda is posting a sign outside her brokerage office. She can't quite remember the requirements, so she's looking up the rules on the Alabama Real Estate Commission's website. Let's see how much you remember about brokerage signage. Indicate whether each of the items is or isn't a requirement for real estate signage in Alabama. At least 24 feet x 24 feet

Not Required

Brenda is posting a sign outside her brokerage office. She can't quite remember the requirements, so she's looking up the rules on the Alabama Real Estate Commission's website. Let's see how much you remember about brokerage signage. Indicate whether each of the items is or isn't a requirement for real estate signage in Alabama. Posted outside

Not Required

Indicate whether each item is or is not a duty of a qualifying broker in Alabama. Serve as qualifying broker at more than one location

Not a Duty

Salesperson Qualifications Bachelor's or associate degree in real estate

Not a Qualification

Once your post license education requirement is met, salespeople and brokers must complete 15 hours of continuing education (CE) every license period. Currently, this is two years. Which of the following are educational requirements for the renewal of a salesperson's license in Alabama? Nine hours of real estate financing and mortgage laws

Not a Requirement

Once your post license education requirement is met, salespeople and brokers must complete 15 hours of continuing education (CE) every license period. Currently, this is two years. Which of the following are educational requirements for the renewal of a salesperson's license in Alabama? Three hours of ethics

Not a Requirement

Brandon is considering becoming a qualifying broker in Alabama. Indicate whether each of the following is or isn't a requirement for qualifying brokers. Licensed in any U.S. state

Not a Requirement. Qualifying brokers must be licensed in Alabama.

Which of these are the commission's additional responsibilities? Establish qualified schools that offer real estate instruction

Not a Responsibility

Some activities that real estate licensees perform are affected by license laws, and others are not. Which would likely be affected? Commission maximums? Affected or not affected?

Not affected

Some activities that real estate licensees perform are affected by license laws, and others are not. Which would likely be affected? Membership in civic organizations? Affected or not affected?

Not affected

Some activities that real estate licensees perform are affected by license laws, and others are not. Which would likely be affected? Work schedules? Affected or not affected?

Not affected

Don't get him wrong--Evan likes his current broker. But McKenna Firth, who owns a brokerage nearby, specializes in the kinds of transactions that Evan really enjoys. In order to transfer his license to McKenna's brokerage, several things have to happen. Can you decide which of these tasks below are part of the license transfer process and which aren't? McKenna must get approval from Evan's current managing broker.

Not part of the process

Don't get him wrong--Evan likes his current broker. But McKenna Firth, who owns a brokerage nearby, specializes in the kinds of transactions that Evan really enjoys. In order to transfer his license to McKenna's brokerage, several things have to happen. Can you decide which of these tasks below are part of the license transfer process and which aren't? Evan must complete coursework on how to transfer his license.

Not part of the process

After the commission has received and verified a complaint against a licensee, what's the next step?

Notify the licensee and qualifying broker, with details on the complaint's disposition, the investigation, and the need for a hearing.

Don't get him wrong--Evan likes his current broker. But McKenna Firth, who owns a brokerage nearby, specializes in the kinds of transactions that Evan really enjoys. In order to transfer his license to McKenna's brokerage, several things have to happen. Can you decide which of these tasks below are part of the license transfer process and which aren't? Evan must write to AREC, informing them that he wants to transfer his license.

Part of the process

Don't get him wrong--Evan likes his current broker. But McKenna Firth, who owns a brokerage nearby, specializes in the kinds of transactions that Evan really enjoys. In order to transfer his license to McKenna's brokerage, several things have to happen. Can you decide which of these tasks below are part of the license transfer process and which aren't? Evan or McKenna must pay AREC a $25 fee.

Part of the process

Don't get him wrong--Evan likes his current broker. But McKenna Firth, who owns a brokerage nearby, specializes in the kinds of transactions that Evan really enjoys. In order to transfer his license to McKenna's brokerage, several things have to happen. Can you decide which of these tasks below are part of the license transfer process and which aren't? McKenna must file, with AREC, a request for Evan's transfer.

Part of the process

Salesperson Phyllis has had a temporary salesperson license for 13 months. She hasn't completed her post-licensing education. Which of the following is true about her situation?

Phyllis's license has lapsed.

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.

What is the primary purpose of license laws?

Protect consumers from unprofessional practices

Salesperson Qualifications 19+ years of age

Qualification

Salesperson Qualifications 60 hours in approved pre-licensing education

Qualification

Salesperson Qualifications High school diploma or equivalent

Qualification

Salesperson Qualifications Must be sponsored by an Alabama broker

Qualification

Salesperson Qualifications 70% or better score on the license exam

Qualification

Sadly, Merrimac Realty has just lost its qualifying broker in a car accident. The firm has 30 days to choose a qualified candidate as a temporary qualifying broker. Indicate whether each of the following licensees is qualified to serve as a temporary qualifying broker. Emmet, who has been a salesperson for two years

Qualified

Sadly, Merrimac Realty has just lost its qualifying broker in a car accident. The firm has 30 days to choose a qualified candidate as a temporary qualifying broker. Indicate whether each of the following licensees is qualified to serve as a temporary qualifying broker. Karen, who has been a broker for five years

Qualified

Sadly, Merrimac Realty has just lost its qualifying broker in a car accident. The firm has 30 days to choose a qualified candidate as a temporary qualifying broker. Indicate whether each of the following licensees is qualified to serve as a temporary qualifying broker. Mike, who has been a broker for three years

Qualified

Important

Qualifying brokers assume responsibility for the actions of licensees who work under them, so when that relationship ends, the licensees' license must be returned to the commission, and the licensees can't practice real estate until their license is re-issued to another qualifying broker.

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

License laws can be actual laws, or they may be regulations with the force of law. What's the difference between a law and a regulation? A standard or rule adopted by a government agency, such as a state department of commerce or the Environmental Protection Agency Law or Regulation?

Regulation

Important

Remember, you must have your real estate license in hand before you can legally perform the same activities that licensed real estate professionals perform. Even once licensed, because you are not an attorney, you may not legally draft a contract. As a licensee, you are limited to the use of legally approved forms and standard clauses.

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

Require the licensee to leave the state

Brenda is posting a sign outside her brokerage office. She can't quite remember the requirements, so she's looking up the rules on the Alabama Real Estate Commission's website. Let's see how much you remember about brokerage signage. Indicate whether each of the items is or isn't a requirement for real estate signage in Alabama. Easily visible to the public

Required

Brenda is posting a sign outside her brokerage office. She can't quite remember the requirements, so she's looking up the rules on the Alabama Real Estate Commission's website. Let's see how much you remember about brokerage signage. Indicate whether each of the items is or isn't a requirement for real estate signage in Alabama. Clearly identify the space as a real estate office

Required If external signs aren't allowed, internal signs must be posted in common entry ways and on office/suite doors.

Brandon is considering becoming a qualifying broker in Alabama. Indicate whether each of the following is or isn't a requirement for qualifying brokers. Able to provide full-time supervision of those licensed under them

Requirement

Brandon is considering becoming a qualifying broker in Alabama. Indicate whether each of the following is or isn't a requirement for qualifying brokers. Real estate as their principal business

Requirement

Indicate whether each of the following is or isn't an Alabama broker licensing requirement. Actively engaged in the practice of real estate for 24 of the 36 months preceding broker's license application

Requirement

Indicate whether each of the following is or isn't an Alabama broker licensing requirement. Pass the licensing exam within six months of completing the required education

Requirement

Once your post license education requirement is met, salespeople and brokers must complete 15 hours of continuing education (CE) every license period. Currently, this is two years. Which of the following are educational requirements for the renewal of a salesperson's license in Alabama? Three hours of risk management

Requirement

Once your post license education requirement is met, salespeople and brokers must complete 15 hours of continuing education (CE) every license period. Currently, this is two years. Which of the following are educational requirements for the renewal of a salesperson's license in Alabama? Twelve hours of commission-approved courses

Requirement

Jean has made business cards that read: "Home is where you put your heart and your junk! Let an accredited and certified real estate professional find your heart and junk the perfect place."

Requires a License

Lex is busy networking at a real estate conference. He bought space for a booth and plans to market his services as a professional real estate broker.

Requires a License. Lex is putting himself out there as a real estate professional, so he needs a license.

Bill just had magnetic signs made for his car that say "Bill Fry, the House Guy—CRB."

Requires a License. Looks like Bill plans to represent himself to the public as a licensed real estate professional, so he needs to have a license.

Which three of these are possible actions if the licensee is found guilty of a violation?

Restricted Revoked Suspended

Terry is no longer allowed to hold a real estate license.

Revoked

Holds an entry level license and performs real estate services under the supervision of a licensed broker

Salesperson

Before the commission can convene a hearing, which of the following must it do?

Serve the accused licensee with a copy of the formal complaint

Marissa wants to renew her license. She has completed her CE and has logged on to the renewal website. Does she need to do anything else?

She has to pay the renewal fees.

Joel, an aggrieved claimant, wants to make a claim from the Alabama Recovery Fund. He says that his agent, Maria, defrauded him. Which of the following does he need to do?

Show that he's not related to Maria.

Which one of these individuals needs a real estate license?

Someone performing real estate services for others for a fee

Covers the requirements of a licensee when performing real estate activities within the state, to include license law, continuing education requirements, supervisory requirements, and prohibited conduct

State-specific license laws

State-Specific License Laws

State-specific license laws relate to the requirements of a licensee when performing real estate activities within the state. License law, continuing education requirements, supervisory requirements, and prohibited conduct are all covered by license law.

Sol will need to avoid practicing real estate for a term specified by the commission.

Suspended

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

Important

The commission administers and enforces laws related to licensed real estate activities.

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. The commission must have notified Thomasina, and her qualifying broker, before beginning the investigation. The commission must have received a written complaint about Thomasina. The commission must have received Thomasina's permission to do this.

The commission can investigate Thomasina without a written complaint.

What happens if a licensee is found guilty of a violation?

The commission may reprimand the licensee, revoke or suspend the license, or impose a fine.

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.

Law of Agency

The law of agency is all about your role relating to your clients. Agency law covers how an agency relationship is created, and the duties of an agent to the principal.

Covers what happens in the case of a breach of contract, and how contracts may be terminated.

The law of contracts

Governs the use of contracts, and the required elements to make a contract valid.

The law of contracts

The Law of Contracts

The law of contracts governs the use of contracts, and the required elements to make a contract valid. It also covers what happens in the case of a breach of contract, and how contracts may be terminated. You'll often see court cases cited in a discussion of contract law because the courts are used to determine contract validity, legality and enforceability. An important point to remember about contracts: You are not an attorney and may not legally draft a contract. Your role as a licensee is limited to the use of legally approved forms and standard clauses. You'll learn all about that later.

Which of the following is NEVER part of the complaint process? Someone fills out the complaint form on the commission's website. The commission investigates the complaint. The commission's legal counsel determines whether or not to take action. The licensee receives a formal written reprimand.

The licensee receives a formal written reprimand.

Amy acted negligently, which resulted in a judgment against her for the financial losses a client incurred. Unfortunately, Amy's personal bankruptcy means that she can't repay the client. Her client plans to submit an application to the recovery fund, but what's the maximum amount the client can receive per incident?

The maximum liability for each licensee is $50,000 per incident.

Important..

The state of Alabama requires all real estate salespersons be licensed under a qualifying broker. When your permanent license is issued, it goes to your qualifying broker, who displays it publically, along with the licenses of all companies, branch offices, brokers, and salespersons at the established place of business.

Indicate whether each of the following is or isn't an Alabama broker licensing requirement. Be at least 21 years old

This isn't a requirement. Applicants must be at least 19.

Indicate whether each of the following is or isn't an Alabama broker licensing requirement. Take 30 hours of approved broker pre-licensing education

This isn't a requirement. Applicants must complete 60 hours of pre-licensing education, not 75.

After you have obtained your real estate license, you may legally draft a contract. True or False

This statement is false. Unless you also happen to be an attorney, you may not legally draft a contract.

Active licensees have six months to complete their post-licensing coursework.

True

Ashley has barely had her salesperson's license for a year, and her broker is already asking her to start working through her renewal requirements. Review these statements about license renewal in Alabama and determine whether they're true or false. Ashley can renew her license online beginning June 15.

True

Ashley has barely had her salesperson's license for a year, and her broker is already asking her to start working through her renewal requirements. Review these statements about license renewal in Alabama and determine whether they're true or false. Her renewal period is midnight on September 30 of even-numbered years.

True

Holders of revoked licenses must apply to have the license reinstated.

True

If a license is suspended, the licensee can't practice real estate until the suspension condition is met.

True

If their broker license is issued to the same company as their salesperson license, they can continue to practice real estate while they wait for their broker license.

True

Melinda Randall has decided to create a limited liability company for her brokerage. The paperwork is official, and Melinda has decided to let the world know MMR Realty, LLC is ready for action! true or false. She is required to obtain a company/branch office license for the busines

True

Melinda Randall has decided to create a limited liability company for her brokerage. The paperwork is official, and Melinda has decided to let the world know MMR Realty, LLC is ready for action! true or false. As the qualifying broker, Melinda must apply for the company license.

True

Melinda Randall has decided to create a limited liability company for her brokerage. The paperwork is official, and Melinda has decided to let the world know MMR Realty, LLC is ready for action! true or false. As the qualifying broker, Melinda must maintain a place of business.

True

Melinda Randall has decided to create a limited liability company for her brokerage. The paperwork is official, and Melinda has decided to let the world know MMR Realty, LLC is ready for action! true or false. Melinda must wait until she obtains the company/branch office license to do business in the business name.

True

Non-licensed people may not perform real estate activities for others for any kind of payment.

True

Non-resident licensees whose states offer co-brokerage may cooperate with Alabama brokers by entering into a written co-brokerage agreement without obtaining an Alabama real estate license.

True

Pay the licensing exam fees.

True

Provide your fingerprints during the criminal history background check.

True

Qualifying broker Elaine wants to disassociate with a salesperson affiliated under her. Indicate whether each of the following statements about the association termination process is true or false. She must notify the licensee in writing.

True

Qualifying broker Elaine wants to disassociate with a salesperson affiliated under her. Indicate whether each of the following statements about the association termination process is true or false. She must notify the real estate commission in writing.

True

Qualifying broker Elaine wants to disassociate with a salesperson affiliated under her. Indicate whether each of the following statements about the association termination process is true or false. She must return the licensee's license to the real estate commission.

True

Qualifying broker Elaine wants to disassociate with a salesperson affiliated under her. Indicate whether each of the following statements about the association termination process is true or false. The Alabama real estate commission will re-issue the salesperson's license to the new qualifying broker.

True

Qualifying broker Elaine wants to disassociate with a salesperson affiliated under her. Indicate whether each of the following statements about the association termination process is true or false. The licensee won't be able to perform real estate activities until licensed with a new qualifying broker.

True

Reciprocal license applicants must complete six hours of pre-licensing coursework covering Alabama license law.

True

Reciprocal license applicants must pass the reciprocal licensing exam within six months of completing the pre-licensing coursework.

True

Reciprocal license applicants must provide their licensing history to the commission within 120 days prior to being issued a reciprocal license.

True

Score 70% on the licensing exam.

True

The commission recently got wind that Adele, a real estate licensee in Birmingham, has not been fully forthcoming on several of her transactions. In fact, she may be guilty of misrepresentation. After a brief investigation (that was all it took), the commission decided to hold an administrative hearing. Which of these statements about this administrative hearing are true? At the hearing, Adele may examine witnesses directly or engage legal representation.

True

The commission recently got wind that Adele, a real estate licensee in Birmingham, has not been fully forthcoming on several of her transactions. In fact, she may be guilty of misrepresentation. After a brief investigation (that was all it took), the commission decided to hold an administrative hearing. Which of these statements about this administrative hearing are true? AREC will serve the Adele with a copy of the formal complaint ether personally or via certified mail.

True

The commission's executive director may issue a cease-and-desist order when an individual is performing illegal actions.

True

The disciplinary process usually begins with someone filing a complaint with the commission. Can you tell which of these statements about complaints are true and which are false? Anyone can file a complaint against a licensee by filling out a form on the commission's website.

True

The disciplinary process usually begins with someone filing a complaint with the commission. Can you tell which of these statements about complaints are true and which are false? Complaints to go the commission's investigative staff.

True

The purpose of licensing is to protect the public by requiring certain education, training, and standards for licensees. True or False

True

The requirements for licensing provide an important oversight component to ensure that you continue to meet the terms of your license. True or False

True

There are different types of licenses based on experience level and training, and different requirements and responsibilities that go with each license. True or False

True

To obtain an original Alabama real estate license, temporary licensees must complete 30 hours of post-licensing education.

True

When an investigation reveals probable cause, a formal complaint will be filed.

True

Which of these statements are true about license laws, and which are false? License laws often prescribe a standard of conduct for licensees.

True

Which of these statements are true about license laws, and which are false? License laws protect the rights of buyers, sellers, tenants, and property owners.

True

You can expect to receive additional real estate training from your broker.

True

Your broker will display your license at the brokerage office.

True

Can you tell which of these statements about complaints are true and which are false? Anyone can file a complaint against a licensee by filling out a form on the commission's website.

True.

Can you tell which of these statements about complaints are true and which are false? Complaints to go the commission's investigative staff.

True.

Sam served as a member of the Alabama Legislature during the license renewal period, so he's exempt from CE requirements.

True.

Melinda Randall has decided to create a limited liability company for her brokerage. The paperwork is official, and Melinda has decided to let the world know MMR Realty, LLC is ready for action! true or false. Melinda must keep all transaction records at the place of business.

True. Brokerage records must be maintained for at least three years.

Tiffany received her reciprocal license in Alabama eight months ago. She doesn't need to complete the CE requirements.

True. Licensees who have held a reciprocal license for less than one year don't need to complete CE requirements for the first license period.

Marvin has had his Alabama real estate license continuously for 30 years, since March of 1990. In 2000, he turned 68. He knows he doesn't need any more CE to keep his license.

True. Marvin is exempt from CE because of his age and because he's held his license continually since October 1, 1990.

Your role as a licensee is limited to the use of legally approved forms and standard clauses. True or False

True. Remember, unless you also happen to be an attorney, you may not legally draft a contract.

Their qualifying broker must return their license to the real estate commission.

True. The qualifying broker must do this when licensees submit their application for a broker license.

If their broker license will be issued to a company other than the one that returns their salesperson license, they must wait until the new license is issued before continuing to engage in real estate activities.

True. They can only continue to practice real estate if their new broker license will be issued to the same company.

What's one form of documentation the commission will accept as proof of an applicant's age?

Valid driver's license

Important.

What if a licensee has to pay restitution to a consumer but doesn't have the funds? Is the consumer out of luck? Not on your life. That's what the Alabama real estate recovery fund is for. The fund helps compensate victims after they've been awarded a judgment against a licensee but haven't been paid.

The commission recently got wind that Adele, a real estate licensee in Birmingham, has not been fully forthcoming on several of her transactions. In fact, she may be guilty of misrepresentation. After a brief investigation (that was all it took), the commission decided to hold an administrative hearing. After Adele's Hearing Adele's hearing is over. What's the commission next step after it makes a decision on the case?

Within 30 days after the hearing concludes, the commission will issue a written order. The commission will consider the matter after the hearing and then notify the parties in writing of its decision within 30 days.

Shayla's license has been on inactive status for the last two years. She'd like to become an active salesperson again, so she completes her 15 hours of CE, affiliates with a broker, and asks the commission to reactivate her license by sending in the required form. Has she followed the rules for reactivating her license?

Yes

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?

Yes, as long as his state offers co-brokerage and he enters into a written co-brokerage agreement with an Alabama broker.

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. Yes, Dean can file an application for a rehearing on the grounds that the judgment was opposed to reliable evidence—that is, Dean has reason to believe that his evidence was not taken into consideration.

Meghan filed a notice of appeal and a $200 bond in the circuit court of Montgomery County. She did this 21 days after she received the outcome of her hearing. She is waiting now for the commission to file the case record with the circuit court. Did Meghan file her notice of appeal correctly?

Yes, she's done everything right so far.

Two years later, business is booming, and MMR Realty, LLC is ready for another branch office. Is Melinda required to obtain another company license for the new branch?

Yes. She'll also need another qualifying broker to work at the other location, and the qualifying broker must apply for the branch office license.

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.

Important.

You have six months to complete your 30 hours of post-licensing coursework if you're an active licensee (12 months if your license is inactive).

Select which of the following statements are correct about the paperwork requirements to obtain an Alabama real estate license.

You must verify your U.S. citizenship. The commission requires verification of age, U.S citizenship/legal residence, and education, and you must apply for your license within 90 days of your examination date.

What does it mean to affiliate with a broker?

You will work as the agent of a broker who is responsible for your actions and required to supervise you.

Important

Your broker should provide you guidance, assistance in starting your career, and education. In addition, your broker displays your license at their brokerage office and is responsible for your actions.