100 Practice Questions and Verified Answers with
Rationales | Instant PDF Download
**1. How many hours of pre-license education are required for an
Alabama real estate salesperson?**
A) 30 hours
B) 60 hours
C) **90 hours**
D) 120 hours
*Rationale: Alabama requires 90 hours of approved pre-license
coursework, covering Principles, Law, and Practice.*
**2. What is the minimum age to apply for an Alabama real estate
salesperson license?**
A) 18 years
B) **19 years**
C) 21 years
D) 25 years
*Rationale: AL Admin Code 790-X-2-.01 requires applicants to be
at least 19 years old.*
**3. Under Alabama law, a "broker" must have been active as a
salesperson for at least how many of the past 5 years?**
,A) 1 year
B) **2 years**
C) 3 years
D) 5 years
*Rationale: Applicants for a broker license need at least 24
months (2 years) of licensed salesperson experience.*
**4. The Alabama Real Estate Commission (AREC) consists of how
many members?**
A) 3
B) 5
C) **7**
D) 9
*Rationale: AREC has 7 members – 6 licensed brokers and 1
public member, all appointed by the Governor.*
**5. Which act governs the recovery fund for victims of real estate
fraud in Alabama?**
A) RESPA
B) **Alabama Real Estate Recovery Act**
C) Truth in Lending Act
D) Fair Housing Act
*Rationale: The Alabama Real Estate Recovery Act established a
fund to reimburse consumers who suffer monetary loss due to
licensee misconduct.*
,**6. A salesperson’s license must be placed under a supervising
broker within how many days of issuance?**
A) 10 days
B) **15 days**
C) 30 days
D) 60 days
*Rationale: A new license is inactive until affiliated with a
qualifying broker; the grace period is 15 days.*
**7. Which of the following is NOT an exemption from Alabama
real estate licensing?**
A) Property owner selling their own home
B) Attorney-in-fact under a power of attorney
C) **A person selling timeshares for a developer**
D) A receiver or trustee in bankruptcy
*Rationale: Timeshare sales typically require a license unless a
specific exemption applies; general exemption list excludes
compensated agents.*
**8. How often must licensees complete continuing education
(CE) in Alabama?**
A) Every year
B) **Every 2 years**
C) Every 3 years
D) Every 4 years
*Rationale: Biennial renewal requires 15 hours of CE, including 3
hours of mandatory Fair Housing/AL law.*
, **9. Maximum civil penalty AREC can impose per violation is:**
A) $500
B) **$1,000**
C) $5,000
D) $10,000
*Rationale: Under Code of Ala. 34-27-36, AREC may levy fines up
to $1,000 per violation.*
**10. Which of the following is considered "dual agency" under
Alabama law?**
A) Representing both buyer and seller in same transaction with
disclosure
B) Two agents in same firm
C) **Representing both parties with informed written consent**
D) Transaction brokerage
*Rationale: Dual agency requires explicit written consent from
both parties after full disclosure; legal in AL.*
**11. An Alabama broker's escrow account must be:**
A) An interest-bearing personal account
B) **A separate trust or fiduciary account**
C) The broker’s operating account
D) Held only out-of-state
*Rationale: Client funds must be kept in a separate, non-interest
(or properly designated) trust account.*