Alabama License Law Exam Questions with Complete Solutions

Alabama License Law Exam Questions with Complete Solutions In the state of Alabama, what is the difference between a customer and a client? A. a client pays the commission B. a client is a seller while a customer is a buyer C. a client has signed an agreement for specific services D. a licensee has duties to a client but not to a customer D Which of the following is NOT an allowed brokerage relationship in Alabama? A. a limited nonconsensual dual agency B. a single agency C. a sub agency D. a transaction brokerage A In which brokerage relationship is the broker NOT working under a signed agreement? A. single agency B. transaction brokerage C. sub agency D. limited consensual dual agency B Broker Joe is representing both the buyer and the seller in the sale of a property in Huntsville. To legally do this, what must Joe do? A. Disclose the non-agency relationship to both the buyer and the seller B. Sign an agency agreement with both clients qualifying broker prior to providing any brokerage services C. Obtain written consent from both clients to enter into the relationship agreement D. Notify both clients which will receive preferential treatment during the transaction C Which brokerage relationship would be common for brokers in a company that is located in a large market area with many Alabama listed properties. A. single agency B. transaction brokerage C. sub agency D. limited consensual dual agency D In which agency relationship might a customer in Alabama become confused as to whom the agent represents? A. single agency B. transaction brokerage C. sub agency D. limited consensual dual agency D Alabama mandates a consumer's right to a minimum level of service. This mandate does NOT include which of the following services? A. helping a consumer negotiate price B. presenting and receiving offers C. assisting with financing D. answering questions A Licensees are required to keep their client's confidential information confidential even if A. disclosing the information is required by law B. the information was obtained through public knowledge C. the client authorizes the disclosure in writing D. information would help the buyer decide whether or not to purchase the property D Alabama license law prohibits a licensee employed by a qualifying broker from mishandling trust funds. Which of the following does NOT constitute this license's mishandling of trust funds? A. accepting cash as earnest money B. transferring earnest money from a trust account into an operating account C. depositing cash into qualifying broker's trust account D. None of the above A Which of the following constitutes illegal commingling? A. Depositing funds from different transactions into the same trust account B. Depositing funds from different clients into the same trust account C. Depositing clients funds and business funds into the same account D. Depositing business funds to cover bank charges into a client trust account C Which of the following statements is TRUE? A. Funds belonging to others must be deposited into an insured account. B. Trust fund accounts must insure each deposit for $200.00. C. Trust fund accounts must be located in any bank who's home office is in Alabama. D. Trust funds must be deposited into a financial institution located in Alabama. A Which of the following is NOT a violation of the record keeping requirement in Alabama? A. Licensees must give copies of all documents to the qualifying broker. B. Licensees must give copies of all documents to the client. C. Qualifying brokers must keep records for at least 3 years. D. Names and dates of funds belonging to others must be included in the records. B If Dennis owns a business that only collects funds owed in relation to real estate transactions, does Dennis or the business need to be licensed under Alabama real estate license law? A. No, because Dennis and the business are not performing acts that require licensure B. No, because Dennis performs real estate acts under the brokerage for whom he collects funds C. Yes, because Dennis is being compensated for collecting the funds D. yes, because collecting funds in relation to real estate transactions requires licensure A Judy's sister often helps Judy with her real estate business. Her sister sometimes shows homes, negotiates commissions, and so forth. Judy knows she is not allowed to pay her sister a commission for any property she helps sell, but Judy doesn't feel right not compensating her at all. So Judy decides to set up payments to her sister based on the profits Judy's business is making. Judy is not paying a commission to an unlicensed person. So she's ok, right? A. Yes, the law prohibits commission payments to unlicensed individuals. B. No, sister is not selling properties but is just assisting so she should not be paid. C. No, paying an unlicensed person any compensation for performing acts that require licensure is a law violation. D. Yes, Judy is obligated to compensate any individual who performs real estate acts. C Whether or not a rebate or incentive is a violation of the Alabama license law depends on A. why it is given B. how much is given C. when it is given D. Who gives it C Which of the following can be attributed to most law violations? A. failure to disclose B. failure to fulfill obligations C. lack of honesty D. negligence C Which of the following is a violation of Alabama license law? A. Unlicensed person advertising sale of own home B. Unlicensed person leasing son's property C. Unlicensed person renting homes for compensation