ALABAMA REAL ESTATE LICENSE EXAM 1
QUESTIONS AND CORRECT DETAILED
ANSWERS FROM A VERIFIED SOURCE
LATEST UPDATE 2026
After passing state exam, you have ___ days to apply for a Temporary
License, either on an Active or Inactive basis. - CORRECT ANSWER-90
Temporary Licenses are only valid for ___ year(s), and cannot be
renewed. - CORRECT ANSWER-1
For an Original License, you must pass a ___ hour post-license course. -
CORRECT ANSWER-30
If Temporary License is ACTIVE, the post-license course must be
completed within ___ months. - CORRECT ANSWER-6.
,If the post-license course is not completed within ___ year(s), the
Temporary License lapses. This period begins on the FIRST DAY of the
month AFTER passing the state exam. - CORRECT ANSWER-1
For Broker's License, applicant must have ACTIVE Salesperson License
for ___ out of ___ years immediately preceding the application. -
CORRECT ANSWER-2/3
The fee to transfer your Salesperson License to a new Qualifying
Broker is $___. - CORRECT ANSWER-$25
An owner's mortgage includes a clause requiring a prepayment penalty.
Three percent of any outstanding loan principal would be charged by
the lender if the owner paid off the principal before the scheduled
time. Payments were $296.88, due on the first of each month, and
included both principal and interest in arrears at 8% per annum. After
the owner's July 1 payment, her loan balance was $8,946.23. On August
1, after handing her lender the check for her August 1 payment, the
owner paid off the entire remaining loan balance. What is the
approximate prepayment penalty? - CORRECT ANSWER-The monthly
house payment, $296.88, includes both interest and principal. The
prepayment penalty is charged only on the principal, not on interest.
Therefore, one must determine how much the new principal loan
balance will
,be after the August 1st house payment is made. The calculations are as
follows:
The loan balance after the July 1 payment is $8,946.23 x 0.08 interest
rate = $715.70 a year ÷ 12 months = $59.64 interest for July.
$296.88 monthly house payment $59.64 interest = 237.24 principal
payment on August 1 payment.
$8946.23 loan balance $237.24 principal paid in August leaves new
principal balance of $8708.99 after August 1st payment.
This is the amount on which the prepayment penalty will be based:
$8708.99 x 0.03 penalty = $261.27
A managing broker requires his licensees to mention a particular lender
to buyers. The broker has a financial interest in this particular
mortgage lender. Which of the following should the licensee
recommend to buyers? - CORRECT ANSWER-Consider this lender,
disclosing the broker's interest, and other lenders.
, Licensees should generally avoid recommending only one lender, and if a
financial interest is involved, it should be disclosed. Since rates can
change, a licensee most likely would not know which lender has the best
rates. Licensees may provide a list of lenders without having to display
the lenders in any particular order.
When using the sales comparison approach, a licensee determines that
a comparable property's tile floor in the entry hall is worth $2,000.
The subject property does not have tile floors at all. Which of the
following adjustments should be made? - CORRECT ANSWER-The
comparable should be adjusted downward.
In the sales comparison (market data) approach to appraisal, it is
always the comparables that are adjusted, never the subject property.
If the comparable is better than the subject property, the adjustment
to it is downward. If the comparable is not as good as the subject
property, the adjustment to it would be upward.
On February 1, a licensee with ABC Realty takes a 3month exclusive
right-to-sell listing on a house. On March 1, the licensee moves out of
state and inactivates his license. What happens to this listing? -
CORRECT ANSWER-It remains a valid exclusive right-to-sell listing
contract with ABC Realty.
QUESTIONS AND CORRECT DETAILED
ANSWERS FROM A VERIFIED SOURCE
LATEST UPDATE 2026
After passing state exam, you have ___ days to apply for a Temporary
License, either on an Active or Inactive basis. - CORRECT ANSWER-90
Temporary Licenses are only valid for ___ year(s), and cannot be
renewed. - CORRECT ANSWER-1
For an Original License, you must pass a ___ hour post-license course. -
CORRECT ANSWER-30
If Temporary License is ACTIVE, the post-license course must be
completed within ___ months. - CORRECT ANSWER-6.
,If the post-license course is not completed within ___ year(s), the
Temporary License lapses. This period begins on the FIRST DAY of the
month AFTER passing the state exam. - CORRECT ANSWER-1
For Broker's License, applicant must have ACTIVE Salesperson License
for ___ out of ___ years immediately preceding the application. -
CORRECT ANSWER-2/3
The fee to transfer your Salesperson License to a new Qualifying
Broker is $___. - CORRECT ANSWER-$25
An owner's mortgage includes a clause requiring a prepayment penalty.
Three percent of any outstanding loan principal would be charged by
the lender if the owner paid off the principal before the scheduled
time. Payments were $296.88, due on the first of each month, and
included both principal and interest in arrears at 8% per annum. After
the owner's July 1 payment, her loan balance was $8,946.23. On August
1, after handing her lender the check for her August 1 payment, the
owner paid off the entire remaining loan balance. What is the
approximate prepayment penalty? - CORRECT ANSWER-The monthly
house payment, $296.88, includes both interest and principal. The
prepayment penalty is charged only on the principal, not on interest.
Therefore, one must determine how much the new principal loan
balance will
,be after the August 1st house payment is made. The calculations are as
follows:
The loan balance after the July 1 payment is $8,946.23 x 0.08 interest
rate = $715.70 a year ÷ 12 months = $59.64 interest for July.
$296.88 monthly house payment $59.64 interest = 237.24 principal
payment on August 1 payment.
$8946.23 loan balance $237.24 principal paid in August leaves new
principal balance of $8708.99 after August 1st payment.
This is the amount on which the prepayment penalty will be based:
$8708.99 x 0.03 penalty = $261.27
A managing broker requires his licensees to mention a particular lender
to buyers. The broker has a financial interest in this particular
mortgage lender. Which of the following should the licensee
recommend to buyers? - CORRECT ANSWER-Consider this lender,
disclosing the broker's interest, and other lenders.
, Licensees should generally avoid recommending only one lender, and if a
financial interest is involved, it should be disclosed. Since rates can
change, a licensee most likely would not know which lender has the best
rates. Licensees may provide a list of lenders without having to display
the lenders in any particular order.
When using the sales comparison approach, a licensee determines that
a comparable property's tile floor in the entry hall is worth $2,000.
The subject property does not have tile floors at all. Which of the
following adjustments should be made? - CORRECT ANSWER-The
comparable should be adjusted downward.
In the sales comparison (market data) approach to appraisal, it is
always the comparables that are adjusted, never the subject property.
If the comparable is better than the subject property, the adjustment
to it is downward. If the comparable is not as good as the subject
property, the adjustment to it would be upward.
On February 1, a licensee with ABC Realty takes a 3month exclusive
right-to-sell listing on a house. On March 1, the licensee moves out of
state and inactivates his license. What happens to this listing? -
CORRECT ANSWER-It remains a valid exclusive right-to-sell listing
contract with ABC Realty.
