ALABAMA REAL ESTATE LICENSE LAW EXAM QUESTIONS AND ANSWERS

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ALABAMA REAL ESTATE LICENSE LAW

EXAM QUESTIONS AND ANSWERS

(NEWEST)

The primary purpose of the Real Estate Commission is to:

• Protect the real estate brokers
• Protect all licenses
• Protect the public
• Test people who want to obtain a real estate license

Correct Answer: c. Protect the public

A company who wishes to maintain more than one business location must apply

for:

• A license for each location
• A partnership license
• A qualifying broker's license
• A corporate license

Correct Answer: a. A license for each location

A qualifying broker is required to keep copies of sales contracts, records of trust

monies, and other documents relating to a sale of real estate for a period of:

• Two years
• Five years
• Ten years

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• Three years

Correct Answer: d. Three years

An individual violating a provision of the real estate license law for the first

time can, if convicted, face:

• A fine not less than $100 no more than $500 or imprisonment for not more

than 90 days

• Suspension of license for not less than 90 days no more than 2 years
• A fine of not less than $100 no more than $2,500
• A fine of not less than $25 no more than $1,000, imprisonment up to 90 days,

or both

Correct Answer: c. A fine of not less than $100 no more than $2,500

A real estate license is required for all of the following except:

• Selling personally owned property
• Offering to procure a prospective purchaser
• Auctioning real estate
• Buying, selling, or otherwise dealing in real estate options

Correct Answer: a. Selling personally owned property

Which of the following is not grounds for suspension, revocation of a license or other, or other punishment of the licensee by the Real Estate Commission?

• Taking a net listing
• Acting for more than one party in a transaction without first obtaining the

written consent of all parties

• Failing to notify the multiple listing service of a sale of listed property
• Failing to inform buyer and seller of the approximate closing costs each will

have to pay

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Correct Answer: c. Failing to notify the multiple listing service of a sale of

listed property

The commission's final decision on a disciplinary action hearing may be

appealed to the Alabama Circuit Court within:

• 6 months
• 90 days
• 15 days
• 30 days

Correct Answer: d. 30 days

Broker license applicant must meet all of the following requirements except:

• Have been actively licensed for 24 out of last 36 months in any state or be

licensed in another state and be making application for a reciprocal Alabama license

• Have been actively licensed for 24 out of last 36 months in Alabama
• Be a minimum of 19 years of age
• Be trustworthy and competent to carry out the duties of a real estate broker

Correct Answer: b. Have been actively licensed for 24 out of last 36 months in

Alabama

A nonresident broker may engage in real estate in Alabama if he or she has:

• Successfully passed the Alabama nonresident real estate examination
• Entered into an agreement with an Alabama broker who has filed the

agreement with the probate office of the county where the property lies

• Entered into a separate co-broker agreement for each parcel of property with

a licensed Alabama broker who has filed a copy of such agreements with the Alabama Real Estate Commission

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• Provided the Alabama Real Estate Commission with a certified copy of his or

her real estate license from a reciprocal state

Correct Answer: c. Entered into a separate co-broker agreement for each parcel

of property with a licensed Alabama broker who has filed a copy of such agreements with the Alabama Real Estate Commission

If a corporation wishes to engage in the real estate practice in Alabama, it must

designate a licensed broker who is to be the:

• Qualifying broker
• Associate broker
• Managing broker
• Broker-supervisor

Correct Answer: a. Qualifying broker

To qualify for a real estate salesman license in Alabama, a person must:

• Complete a course of study having a minimum of 60 classroom hours in a

class meeting in Alabama

• Complete a course of study having a minimum of 60 classroom hours
• Have a college degree
• Have resided in Alabama for a minimum of 60 days

Correct Answer: b. Complete a course of study having a minimum of 60

classroom hours

Broker Mary Hart operates a brokerage business within the corporate city limits

of Montgomery. Hart:

• May maintain a place of business in her home
• May not hire salespeople
• Must be sure her office is located on property zoned for business