Alabama License Law Exam 2026
Questions and Answers
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 - Correct answer-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 - Correct answer-A
In which brokerage relationship is the broker NOT working under a signed
agreement?
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,A. single agency
B. transaction brokerage
C. sub agency
D. limited consensual dual agency - Correct answer-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 - Correct answer-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
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,C. sub agency
D. limited consensual dual agency - Correct answer-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 - Correct answer-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 - Correct answer-A
Licensees are required to keep their client's confidential information confidential
even if
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, 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 - Correct answer-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 - Correct answer-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
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Questions and Answers
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 - Correct answer-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 - Correct answer-A
In which brokerage relationship is the broker NOT working under a signed
agreement?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,A. single agency
B. transaction brokerage
C. sub agency
D. limited consensual dual agency - Correct answer-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 - Correct answer-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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,C. sub agency
D. limited consensual dual agency - Correct answer-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 - Correct answer-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 - Correct answer-A
Licensees are required to keep their client's confidential information confidential
even if
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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 - Correct answer-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 - Correct answer-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
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