Alabama Real Estate Exam Prep 2026
Questions and Answers
"To uphold, protect, and promote the public interest, which embraces the interests
of regulated licensees and entities and the interest of consumers, by the fair and
impartial development and administration of licensing laws and regulations." -
Correct answer-Alabama Real Estate Commission Mission Statement
Protect consumers from unprofessional practices. - Correct answer-What is the
primary purpose of license laws?
Buyers, Sellers, Tenants, and Land/Building Owners - Correct answer-Who does
license law protect?
Law of Contracts, General Property Law, Law of Agency, State-Specific License
Law, Landlord-Tenant Laws, & Consumer Protection Laws are all: - Correct
answer-Areas covered by Real Estate License Law.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Governs the use of contracts, and what makes them valid. Also covers what
happens when a breach of contract occurs and how contracts may be terminated. -
Correct answer-Law of Contracts
I, Tripp Burnett, can legally draft contracts. T/F - Correct answer-False.
Covers the various forms of property law and ownership including, tenancy in real
property, and its distinction from personal property. Also covers the rights of
ownership and tenancy and the government's rights and authority under eminent
domain and various police powers. - Correct answer-General Property Law
Covers how an agency relationship is created, and the duties of an agent to the
principal. - Correct answer-Law of Agency
Relate to the requirements of a licensee when preforming real estate activities
within the state. - Correct answer-State-Specific License Law
These laws address the landlord-tenant relationship. They establish everything
from the duties and responsibilities of each party to the state laws for handling
lease agreements to fair housing considerations for tenants and other tenants' rights
issues. - Correct answer-Landlord-Tenant Laws
Laws established to ensure that the licensed professionals in a state treat customers
with fairness. These laws are designed to protect consumers from unfair or
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,unethical business practices, fraud, misrepresentation, and more. - Correct answer-
Consumer-Protection Laws
1928. - Correct answer-The year the AREC was born.
Who appoints members (9) to the AREC board? - Correct answer-The governor
appoints members to the AREC board, with advice and consent from the senate.
How many members of the board must have lived in Alabama and been a licensed
agent for at least 10 years prior to appointment? - Correct answer-7
All members serve _____ year terms. - Correct answer-5.
Appointments expire on what date? - Correct answer-September 30th.
How many terms may you serve? - Correct answer-No more than two consecutive
terms.
At least _____ member of the board must be African American and appointed from
any congressional district. - Correct answer-1.
At least _______ member must be consumer appointed from any congressional
district. - Correct answer-1.
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, As a judicial body, the __________ has the duty and power to investigate claims of
licensee violations, hold hearings, and impose disciplinary action when required. -
Correct answer-AREC
An ________ may include issuing subpoenas, hearing witness testimony, and
requesting pertinent documents and records. - Correct answer-Investigation
When an investigation reveals _______, a formal complaint is filed and the AREC
will notify the licensee and the broker in _________. - Correct answer-Probable
Cause & (In) Writing
When an individual or business entity is illegally preforming actions that require a
real estate license in the state, the commissions executive director may issue a
___________ order. - Correct answer-Cease and Desist Order.
The accused may request a hearing, and, if the commission finds the accused
guilty, it may finalize the C&D order and impose fines for each violation. If no
hearing is requested, the order becomes final ____ days after it's served. - Correct
answer-15.
If found guilty the commission has the power to: - Correct answer-Reprimand the
licensee, require the licensee to take continuing education course work, revoke or
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Questions and Answers
"To uphold, protect, and promote the public interest, which embraces the interests
of regulated licensees and entities and the interest of consumers, by the fair and
impartial development and administration of licensing laws and regulations." -
Correct answer-Alabama Real Estate Commission Mission Statement
Protect consumers from unprofessional practices. - Correct answer-What is the
primary purpose of license laws?
Buyers, Sellers, Tenants, and Land/Building Owners - Correct answer-Who does
license law protect?
Law of Contracts, General Property Law, Law of Agency, State-Specific License
Law, Landlord-Tenant Laws, & Consumer Protection Laws are all: - Correct
answer-Areas covered by Real Estate License Law.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Governs the use of contracts, and what makes them valid. Also covers what
happens when a breach of contract occurs and how contracts may be terminated. -
Correct answer-Law of Contracts
I, Tripp Burnett, can legally draft contracts. T/F - Correct answer-False.
Covers the various forms of property law and ownership including, tenancy in real
property, and its distinction from personal property. Also covers the rights of
ownership and tenancy and the government's rights and authority under eminent
domain and various police powers. - Correct answer-General Property Law
Covers how an agency relationship is created, and the duties of an agent to the
principal. - Correct answer-Law of Agency
Relate to the requirements of a licensee when preforming real estate activities
within the state. - Correct answer-State-Specific License Law
These laws address the landlord-tenant relationship. They establish everything
from the duties and responsibilities of each party to the state laws for handling
lease agreements to fair housing considerations for tenants and other tenants' rights
issues. - Correct answer-Landlord-Tenant Laws
Laws established to ensure that the licensed professionals in a state treat customers
with fairness. These laws are designed to protect consumers from unfair or
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,unethical business practices, fraud, misrepresentation, and more. - Correct answer-
Consumer-Protection Laws
1928. - Correct answer-The year the AREC was born.
Who appoints members (9) to the AREC board? - Correct answer-The governor
appoints members to the AREC board, with advice and consent from the senate.
How many members of the board must have lived in Alabama and been a licensed
agent for at least 10 years prior to appointment? - Correct answer-7
All members serve _____ year terms. - Correct answer-5.
Appointments expire on what date? - Correct answer-September 30th.
How many terms may you serve? - Correct answer-No more than two consecutive
terms.
At least _____ member of the board must be African American and appointed from
any congressional district. - Correct answer-1.
At least _______ member must be consumer appointed from any congressional
district. - Correct answer-1.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, As a judicial body, the __________ has the duty and power to investigate claims of
licensee violations, hold hearings, and impose disciplinary action when required. -
Correct answer-AREC
An ________ may include issuing subpoenas, hearing witness testimony, and
requesting pertinent documents and records. - Correct answer-Investigation
When an investigation reveals _______, a formal complaint is filed and the AREC
will notify the licensee and the broker in _________. - Correct answer-Probable
Cause & (In) Writing
When an individual or business entity is illegally preforming actions that require a
real estate license in the state, the commissions executive director may issue a
___________ order. - Correct answer-Cease and Desist Order.
The accused may request a hearing, and, if the commission finds the accused
guilty, it may finalize the C&D order and impose fines for each violation. If no
hearing is requested, the order becomes final ____ days after it's served. - Correct
answer-15.
If found guilty the commission has the power to: - Correct answer-Reprimand the
licensee, require the licensee to take continuing education course work, revoke or
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
