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ALABAMA REAL ESTATE LICENSE EXAM 2026\2027 |
COMPREHENSIVE Q&A FOR GUARANTEED
PASS
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. -
correctanswer-30
If Temporary License is ACTIVE, the post-license course must be completed within
___ months. - CORRECT ANSWER 6.
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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
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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
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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.
Income Method Formula - CORRECT ANSWER Annual Net Income
---------------------------
Value | Cap Rate (ROI)
Annual Net Income Formula - CORRECT ANSWER Potential Gross Annual Income
- Vacancies: (Vacancy Rate) x (Potential Gross Income)
+ Additional Income
-----------------------------------
= Effective Gross Income
- Expenses
-----------------------------------
ALABAMA REAL ESTATE LICENSE EXAM 2026\2027 |
COMPREHENSIVE Q&A FOR GUARANTEED
PASS
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. -
correctanswer-30
If Temporary License is ACTIVE, the post-license course must be completed within
___ months. - CORRECT ANSWER 6.
,2|Page
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
,3|Page
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
, 4|Page
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.
Income Method Formula - CORRECT ANSWER Annual Net Income
---------------------------
Value | Cap Rate (ROI)
Annual Net Income Formula - CORRECT ANSWER Potential Gross Annual Income
- Vacancies: (Vacancy Rate) x (Potential Gross Income)
+ Additional Income
-----------------------------------
= Effective Gross Income
- Expenses
-----------------------------------
