ALABAMA REAL ESTATE SALESPERSON
PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following would be considered personal property?
A. Ceiling fan
B. Patio furniture
C. Built-in dishwasher
D. Furnace
Patio furniture is movable and not permanently attached, so it's personal
property.
2. A salesperson owes fiduciary duties to:
A. Everyone
B. The customer
,C. The client
D. The public
A fiduciary relationship is between the agent and the client.
3. Which document transfers ownership of real property?
A. Lease
B. Bill of sale
C. Deed
D. Mortgage
A deed is the legal instrument used to transfer ownership of real property.
4. The primary purpose of the Alabama Real Estate Commission (AREC) is
to:
A. Represent brokers
B. Promote real estate investment
C. Protect the public
D. Assist real estate associations
AREC’s main role is to protect the public from unlicensed and unethical
practices.
5. Which of the following is an example of police power?
A. Granting easements
B. Zoning laws
,C. Eminent domain
D. Deed restrictions
Zoning is a government regulation for the public's welfare and part of police
power.
6. A salesperson must give the RECAD disclosure form to a consumer:
A. Before writing a contract
B. As soon as reasonably possible for a real estate transaction
C. At closing
D. After signing an agency agreement
RECAD requires timely disclosure of agency relationships.
7. How many members are on the Alabama Real Estate Commission?
A. 5
B. 9
C. 12
D. 7
AREC has 9 members, appointed to oversee licensing and disciplinary
matters.
8. In a real estate transaction, dual agency occurs when:
A. A broker represents neither party
B. A broker represents both the buyer and seller in the same transaction
, C. Two brokers co-list a property
D. A buyer has two agents
Dual agency means one broker represents both parties, with informed
consent.
9. Which lien has the highest priority?
A. Mortgage
B. Property tax
C. Judgment
D. Mechanic’s lien
Property tax liens are superior to all other liens, regardless of filing date.
10. A buyer gives a deposit with a purchase offer. This deposit is
known as:
A. Down payment
B. Earnest money
C. Commission
D. Option fee
Earnest money shows the buyer's good faith and is typically held in escrow.
11. How often must Alabama real estate licenses be renewed?
A. Every year
B. Every two years
PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following would be considered personal property?
A. Ceiling fan
B. Patio furniture
C. Built-in dishwasher
D. Furnace
Patio furniture is movable and not permanently attached, so it's personal
property.
2. A salesperson owes fiduciary duties to:
A. Everyone
B. The customer
,C. The client
D. The public
A fiduciary relationship is between the agent and the client.
3. Which document transfers ownership of real property?
A. Lease
B. Bill of sale
C. Deed
D. Mortgage
A deed is the legal instrument used to transfer ownership of real property.
4. The primary purpose of the Alabama Real Estate Commission (AREC) is
to:
A. Represent brokers
B. Promote real estate investment
C. Protect the public
D. Assist real estate associations
AREC’s main role is to protect the public from unlicensed and unethical
practices.
5. Which of the following is an example of police power?
A. Granting easements
B. Zoning laws
,C. Eminent domain
D. Deed restrictions
Zoning is a government regulation for the public's welfare and part of police
power.
6. A salesperson must give the RECAD disclosure form to a consumer:
A. Before writing a contract
B. As soon as reasonably possible for a real estate transaction
C. At closing
D. After signing an agency agreement
RECAD requires timely disclosure of agency relationships.
7. How many members are on the Alabama Real Estate Commission?
A. 5
B. 9
C. 12
D. 7
AREC has 9 members, appointed to oversee licensing and disciplinary
matters.
8. In a real estate transaction, dual agency occurs when:
A. A broker represents neither party
B. A broker represents both the buyer and seller in the same transaction
, C. Two brokers co-list a property
D. A buyer has two agents
Dual agency means one broker represents both parties, with informed
consent.
9. Which lien has the highest priority?
A. Mortgage
B. Property tax
C. Judgment
D. Mechanic’s lien
Property tax liens are superior to all other liens, regardless of filing date.
10. A buyer gives a deposit with a purchase offer. This deposit is
known as:
A. Down payment
B. Earnest money
C. Commission
D. Option fee
Earnest money shows the buyer's good faith and is typically held in escrow.
11. How often must Alabama real estate licenses be renewed?
A. Every year
B. Every two years
