Free Alabama Real Estate Practice Exam: 40 Questions

All of the following actions are prohibited aside from writing and placing advertising in newspapers and other forms of publication. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

15 hours of CE approved by the Commission is required every renewal cycle. Six hours of Alabama Risk Management are required and the other 9 hours can be approved courses of your choosing.

Under Alabama License Law offering real estate or improvements as prizes in games of chance is a violation of license law.

No it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. Commingling is illegal in Alabama.

All of the options are violations of Alabama License Law. The violations are clearly defined on Alabama License Law Article 2 Section 34-27-36 C. Read More Here

Two terms. “No member shall serve for more than two consecutive terms of office, except, however, each member shall hold office until his or her successor is appointed by the Governor and confirmed by the Senate.”Per Alabama License Law Section 34-27-7 C. Read More Here

The Recovery Fund is a special fund established by Alabama Real Estate Law that provides reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The fund is designed to protect consumers.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

If the recovery fund falls below: $500,000, AREC will order each ACTIVE licensee to pay a $30 assessment fee to replenish the fund. “ When the balance remaining in the Recovery Fund is less than five hundred thousand dollars ($500,000), each broker and salesperson shall on order of the commission pay a fee of thirty dollars ($30) per license for deposit in the Recovery Fund.” Per Alabama License Law Article 2 Section 34-27-31 3D. Read More Here

Seven members. “Each of the original seven appointees and their successors shall have been a resident and citizen of this state for at least 10 years prior to his or her appointment and whose vocation for at least 10 years shall have been that of a real estate broker or real estate salesperson.” Per Alabama License Law Section 34-27-7 C. Read More Here

“Notwithstanding any other provisions of law, the commission may issue an order requiring any accused person, firm, corporation, or business entity to cease and desist from engaging in activities requiring a license.” Per Alabama License Law Article 2 Section 34-27-36 C2.

Payment of a fee to a licensee by a carpet installer for referral of business would be classified as a violation as it is considered a rebate. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

September 30, on even numbered years. All licenses, except temporary salesperson and temporary broker licenses, expire at midnight on September 30. Temporary brokers may renew their salesperson license. Read More Here

“(2) Payments for claims based on judgments or settlements against any one person shall not exceed fifty thousand dollars ($50,000) in the aggregate. (3) Payments for claims arising out of the same transaction shall not exceed twenty-five thousand dollars ($25,000) in the aggregate, regardless of the number of claimants.” Per Alabama License Law Article Section 34-27-31 B1, B2.

All of the following actions are allowed aside from Preparing or discussing a listing or property management agreement with an owner. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

Know your requirements! All the statements here are TRUE. Listed under Alabama License Law Article 2 Section 34-27-32 A. Read More Here

Placing a sign on any property offering it for sale, lease, or rent without the consent of the owner is a violation of Alabama License Law. All violations are clearly defined on Alabama License Law Article 2 Section 34-27-36 C. Read More Here

All of the options would be violations. These examples would fall under the Kickback category. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

Yes it is. Paying or receiving any rebate from any person in a real estate transaction is clearly a violation. While paying and rebates are violations, incentives are not. Incentives can be given legally but must be given in advance or at closing and must be disclosed to all interested parties. All violations are clearly defined on Alabama License Law Article 2 Section 34-27-36 C.

RECAD forms are included in copies of documents that must be kept by the licensee for at least 3 years. Per Alabama License Law Article 3 Section 34-27-36. Read More Here

“Any salesperson or associate broker who desires to change his or her qualifying broker shall give notice in writing to the commission, and shall send a copy of the notice to his or her qualifying broker. The new qualifying broker shall file with the commission a request for the transfer and a statement assuming liability for the licensee. On payment of a fee of twenty-five dollars ($25), a new license certificate shall be issued to the salesperson or associate broker for the unexpired term of the original license.” Per Alabama License Law Article 2 Section 34-27-34 B. Read More Here

All of the following actions are prohibited aside from delivering information and forms to a mortgage company and closing attorney or agent as part of the preparation for closing. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

“Licensees are required to provide the Real Estate Brokerage Services Disclosure form to the consumer as soon as reasonably possible for his or her signature. Consumers are not required by law to sign the form, although the licensee should encourage that it be signed. If the consumer declines to sign, the licensee shall make a note to this effect on the form.” Per Alabama License Law Rule 790-X-3-.13. Read More Here

Under agency law in Alabama dual agency is legal but only with the consent of all parties to the transaction. Per Rule 790-X-3-.13. Read More Here

“A temporary license shall be valid only for a period of one year following the first day of the month after its issuance.” Per Alabama License Law Article 2 Section 34-27-33 C1. Read More Here

Licensees are required to provide RECAD forms but consumers are NOT required to sign it. “Licensees are required to provide the Real Estate Brokerage Services Disclosure form to the consumer as soon as reasonably possible for his or her signature. Consumers are not required by law to sign the form, although the licensee should encourage that it be signed. If the consumer declines to sign, the licensee shall make a note to this effect on the form.” Per Alabama License Law Rule 790-X-3-.13. Read More Here

All individuals who hold an active Alabama real estate salesperson's license are required to complete continuing education every two years. “Every two years a total of fifteen (15) clock hours of continuing education prescribed by the Commission is required for renewal of an active license. These hours must be completed by September 30 of every even year.”

“A license for a broker or a salesperson shall be registered to a specific real estate office and shall be issued only to, and held only by, a person who meets all of the following requirements - 4: Is at least 19 years old” Per Alabama License Law Article 2 Section 34-27-32 A4. Read More Here

“Each licensee shall notify the commission within 10 days after notice to him or her of the institution of any criminal prosecution against him or her, or of a civil summons and complaint against him or her, if the subject matter of the civil complaint involves a real estate transaction or involves the goodwill of an existing real estate business.” Per Alabama License Law Article 1 Section 34-27-31 J.

If an affiliated licensee violates license law, the law states that both the qualifying broker and licensee will be held responsible for the damage caused.

“When an aggrieved person commences an action for a judgment which may result in collection from the Recovery Fund, the aggrieved person shall notify the commission in writing, by certified mail, return receipt requested, to this effect at the time of the commencement of the action.” Per Alabama License Law Article 2 Section 34-27-31 E1. Read More Here

The Alabama Real Estate Commission administers and enforces the laws of the state relating to real estate activities. "To uphold, protect, and promote the public interest, which embraces the interests of regulated licensees and entities and the interest of consumers, by the fair and impartial development and administration of licensing laws and regulations." Their mission is to serve the public through the licensing and regulating of real estate licensees. Read More Here

The license expires. Be careful with language here. Remember, a suspended license, a revoked license and an expired license are all different things.

“Within 90 days after passing the examination, the applicant shall secure a qualifying broker and meet all requirements of this chapter and the board shall issue an active license or classify the license as inactive.” Per Alabama License Law Article 2 Section 34-27-33 B. Read More Here

All of the options would be classified as a violation as they are legally considered rebates. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

“The holder of a temporary license shall not be issued an original license until he or she has satisfactorily completed a 30-hour post-license course prescribed by the commission. The holder of a temporary license must complete the course within six months of issuance of his or her temporary license and have his or her original license issued, otherwise his or her temporary license certificate shall automatically be placed on inactive status by the commission.” Per Alabama License Law Article 2 Section 34-27-33 C2.

There are a total of nine members in the Alabama Real Estate Commission. Per Alabama License Law Section 34-27-7 A. Read More Here

None of the options are violations. Jon can do all of the following as long as all incentives are given in advance or at closing and must be disclosed to all interested parties. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

“The fee for a temporary license shall be one hundred fifty dollars ($150).” Per Alabama License Law Article 2 Section 34-27-35. C1. Read More Here

The holder of a temporary license must complete the course within six months of issuance of his or her temporary license and have his or her original license issued, otherwise his or her temporary license certificate shall automatically be placed on inactive status by the commission.” Per Alabama License Law Article 2 Section 34-27-33 C2.