Alabama Real Estate License Law Exam
Questions With Complete Solutions
Graded A+
15 days - CORRECT ANSWER-AREC must give __?____ days notice of the hearing?
30 days - CORRECT ANSWER-How many days does AREC have to give before their
decision is stated?
30 days - CORRECT ANSWER-How many days does the licensee have to decide if
they will accept the decision of AREC or appeal it?
conversion - CORRECT ANSWER-spending earnest money = theft
misuse of trust accounts - CORRECT ANSWER-What is the #1 violation that would
cause a license to be revoked or suspended?
detailed closing statement showing all receipts and disbursements - CORRECT
ANSWER-In addition to the licensee providing an estimated closing statement at offer
time, they should also furnish __________ at the time the sale is closed.
Immediately - CORRECT ANSWER-When should any cash funds be deposited by?
Commission and public - CORRECT ANSWER-A qualifying broker shall be held
responsible to the _________&____________ for all acts of each salesperson and
associate broker licensed under them
,Qualifying Broker - CORRECT ANSWER-A _______ will be responsible to an injured
party for the damage caused by any violation by a licensee engaged by this person.
7 days - CORRECT ANSWER-Each qualifying broker shall promptly disburse to the
appropriate party any trust monies owed within _______ days of the consummation of
the transaction for which the funds were deposited.
liable for all acts of the out-of-state broker and for their own acts - CORRECT
ANSWER-In an out-of-state co-brokerage the AL broker shall be ___________...
name - CORRECT ANSWER-In all advertising of RE located in AL the _______ of the
AL broker shall appear
offers the same privileges to licensees of this state - CORRECT ANSWER-A licensed
broker of another state may act as a co-broker with a licensed broker of this state by
written agreement specifying each parcel of property covered, if the state in which the
non-resident broker is licensed _____________.
1) 10 days 2) copy of the agreement - CORRECT ANSWER-Whenever an AL broker
enters into a co-broker with a non-resident broker to perform in AL the AL broker shall
file within ________days. What shall be filed with the commission?
Does not need a license - CORRECT ANSWER-Does this person need to be licensed -
Person acting without compensation and in good faith under a duly executed power of
attorney authorizing the consummation of a RE transaction
license period - CORRECT ANSWER-The period of time beginning on Oct 1 on a year
designated by the commission to be the first year of a licensing period and ending on
midnight Sept 30 of the year designated by commission as the final year of that
licensing period
, 1)residence 2) Aug 1 - CORRECT ANSWER-License renewal forms will be mailed to
place of business if for an active license or ________ if inactive prior to ________ of the
final year of license period
terminates - CORRECT ANSWER-Upon issuance of their broker's license certificate the
licensed salesperson's license automatically ____________ upon issuance of their
brokers certificate
One who does auction is required. the ground men are not required to be licensed. -
CORRECT ANSWER-In a RE auction who is/is not required to be licensed?
does not need to be licensed - CORRECT ANSWER-Does a person acting as the
manager for an apartment building complex need to be licensed?
15 days - CORRECT ANSWER-Anyone whose application is not deemed acceptable
may request a hearing before the commission. The person has ______days to request
a hearing.
1) business
2) rural area may operate a sole proprietorship from home.Must have a separate
business phone, entrance & be properly identified
3) handicapped broker- regardless of zoning can do the same as above - CORRECT
ANSWER-The primary requirement is that a RE office be located in an area zoned for
________. There are 2 exceptions. What are they?
NO - CORRECT ANSWER-Does an owner in the managing or in consummating a RE
transaction involving their own RE of that of a spouse, child, or parent have to hold a RE
license?
Yes - CORRECT ANSWER-Does a person acting as an on-site manager of a
condominium complex have to be licensed?
Questions With Complete Solutions
Graded A+
15 days - CORRECT ANSWER-AREC must give __?____ days notice of the hearing?
30 days - CORRECT ANSWER-How many days does AREC have to give before their
decision is stated?
30 days - CORRECT ANSWER-How many days does the licensee have to decide if
they will accept the decision of AREC or appeal it?
conversion - CORRECT ANSWER-spending earnest money = theft
misuse of trust accounts - CORRECT ANSWER-What is the #1 violation that would
cause a license to be revoked or suspended?
detailed closing statement showing all receipts and disbursements - CORRECT
ANSWER-In addition to the licensee providing an estimated closing statement at offer
time, they should also furnish __________ at the time the sale is closed.
Immediately - CORRECT ANSWER-When should any cash funds be deposited by?
Commission and public - CORRECT ANSWER-A qualifying broker shall be held
responsible to the _________&____________ for all acts of each salesperson and
associate broker licensed under them
,Qualifying Broker - CORRECT ANSWER-A _______ will be responsible to an injured
party for the damage caused by any violation by a licensee engaged by this person.
7 days - CORRECT ANSWER-Each qualifying broker shall promptly disburse to the
appropriate party any trust monies owed within _______ days of the consummation of
the transaction for which the funds were deposited.
liable for all acts of the out-of-state broker and for their own acts - CORRECT
ANSWER-In an out-of-state co-brokerage the AL broker shall be ___________...
name - CORRECT ANSWER-In all advertising of RE located in AL the _______ of the
AL broker shall appear
offers the same privileges to licensees of this state - CORRECT ANSWER-A licensed
broker of another state may act as a co-broker with a licensed broker of this state by
written agreement specifying each parcel of property covered, if the state in which the
non-resident broker is licensed _____________.
1) 10 days 2) copy of the agreement - CORRECT ANSWER-Whenever an AL broker
enters into a co-broker with a non-resident broker to perform in AL the AL broker shall
file within ________days. What shall be filed with the commission?
Does not need a license - CORRECT ANSWER-Does this person need to be licensed -
Person acting without compensation and in good faith under a duly executed power of
attorney authorizing the consummation of a RE transaction
license period - CORRECT ANSWER-The period of time beginning on Oct 1 on a year
designated by the commission to be the first year of a licensing period and ending on
midnight Sept 30 of the year designated by commission as the final year of that
licensing period
, 1)residence 2) Aug 1 - CORRECT ANSWER-License renewal forms will be mailed to
place of business if for an active license or ________ if inactive prior to ________ of the
final year of license period
terminates - CORRECT ANSWER-Upon issuance of their broker's license certificate the
licensed salesperson's license automatically ____________ upon issuance of their
brokers certificate
One who does auction is required. the ground men are not required to be licensed. -
CORRECT ANSWER-In a RE auction who is/is not required to be licensed?
does not need to be licensed - CORRECT ANSWER-Does a person acting as the
manager for an apartment building complex need to be licensed?
15 days - CORRECT ANSWER-Anyone whose application is not deemed acceptable
may request a hearing before the commission. The person has ______days to request
a hearing.
1) business
2) rural area may operate a sole proprietorship from home.Must have a separate
business phone, entrance & be properly identified
3) handicapped broker- regardless of zoning can do the same as above - CORRECT
ANSWER-The primary requirement is that a RE office be located in an area zoned for
________. There are 2 exceptions. What are they?
NO - CORRECT ANSWER-Does an owner in the managing or in consummating a RE
transaction involving their own RE of that of a spouse, child, or parent have to hold a RE
license?
Yes - CORRECT ANSWER-Does a person acting as an on-site manager of a
condominium complex have to be licensed?
