ALABAMA REAL ESTATE LICENSE
EXAM || 175 QUESTIONS AND
CORRECT ANSWERS 2025\2026
EXAM ALREADY GRADED A+
After passing state exam, you have ___ days to apply for a Temporary
License, either on an Active or Inactive basis. - ANSWER- 90
Temporary Licenses are only valid for ___ year(s), and cannot be
renewed. - ANSWER- 1
For an Original License, you must pass a ___ hour post-license course. -
ANSWER- 30
If Temporary License is ACTIVE, the post-license course must be
completed within ___ months. - 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. - ANSWER- 1
,For Broker's License, applicant must have ACTIVE Salesperson License
for ___ out of ___ years immediately preceding the application. -
ANSWER- 2/3
The fee to transfer your Salesperson License to a new Qualifying Broker
is $___. - 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? - 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? - 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? - 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? -
ANSWER- It remains a valid exclusive right-to-sell listing contract with
ABC Realty.
The listing belongs to the brokerage firm; it does not belong to an
individual licensee. The licensee takes the listing on behalf of the firm,
and, if the licensee leaves or becomes unlicensed during the listing, the
listing would remain in whatever form it was originally taken. The
listing would still be in effect with the firm until it expires or is
terminated.
A person bought property from a seller and received a general warranty
deed. Two years later, the seller's brother came forth and claimed he had
an ownership interest in the property. The brother stated he knew the
court would uphold his interest. In a general warranty deed, the buyer is
protected from this situation by the covenant-- - ANSWER- --of seisin.
Although all covenants in a general warranty deed work together to
protect the buyer, the covenant of seisin specifically guarantees that the
owner owned the real estate at the time of the sale and had the right to
convey it.
EXAM || 175 QUESTIONS AND
CORRECT ANSWERS 2025\2026
EXAM ALREADY GRADED A+
After passing state exam, you have ___ days to apply for a Temporary
License, either on an Active or Inactive basis. - ANSWER- 90
Temporary Licenses are only valid for ___ year(s), and cannot be
renewed. - ANSWER- 1
For an Original License, you must pass a ___ hour post-license course. -
ANSWER- 30
If Temporary License is ACTIVE, the post-license course must be
completed within ___ months. - 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. - ANSWER- 1
,For Broker's License, applicant must have ACTIVE Salesperson License
for ___ out of ___ years immediately preceding the application. -
ANSWER- 2/3
The fee to transfer your Salesperson License to a new Qualifying Broker
is $___. - 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? - 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? - 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? - 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? -
ANSWER- It remains a valid exclusive right-to-sell listing contract with
ABC Realty.
The listing belongs to the brokerage firm; it does not belong to an
individual licensee. The licensee takes the listing on behalf of the firm,
and, if the licensee leaves or becomes unlicensed during the listing, the
listing would remain in whatever form it was originally taken. The
listing would still be in effect with the firm until it expires or is
terminated.
A person bought property from a seller and received a general warranty
deed. Two years later, the seller's brother came forth and claimed he had
an ownership interest in the property. The brother stated he knew the
court would uphold his interest. In a general warranty deed, the buyer is
protected from this situation by the covenant-- - ANSWER- --of seisin.
Although all covenants in a general warranty deed work together to
protect the buyer, the covenant of seisin specifically guarantees that the
owner owned the real estate at the time of the sale and had the right to
convey it.
