ALABAMA REAL ESTATE EXAM PREP
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
"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." - ANS Alabama Real
Estate Commission Mission Statement
Protect consumers from unprofessional practices. - ANS What is the primary purpose of
license laws?
Buyers, Sellers, Tenants, and Land/Building Owners - ANS 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: - ANS Areas covered by Real Estate
License Law.
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. - ANS Law of Contracts
I, Tripp Burnett, can legally draft contracts. T/F - ANS False.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,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. -
ANS General Property Law
Covers how an agency relationship is created, and the duties of an agent to the principal. -
ANS Law of Agency
Relate to the requirements of a licensee when preforming real estate activities within the state.
- ANS 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. - ANS 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 unethical business
practices, fraud, misrepresentation, and more. - ANS Consumer-Protection Laws
1928. - ANS The year the AREC was born.
Who appoints members (9) to the AREC board? - ANS 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? - ANS 7
All members serve _____ year terms. - ANS 5.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Appointments expire on what date? - ANS September 30th.
How many terms may you serve? - ANS No more than two consecutive terms.
At least _____ member of the board must be African American and appointed from any
congressional district. - ANS 1.
At least _______ member must be consumer appointed from any congressional district. -
ANS 1.
As a judicial body, the __________ has the duty and power to investigate claims of licensee
violations, hold hearings, and impose disciplinary action when required. - ANS AREC
An ________ may include issuing subpoenas, hearing witness testimony, and requesting
pertinent documents and records. - ANS Investigation
When an investigation reveals _______, a formal complaint is filed and the AREC will notify the
licensee and the broker in _________. - ANS 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. -
ANS 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. - ANS 15.
If found guilty the commission has the power to: - ANS Reprimand the licensee, require the
licensee to take continuing education course work, revoke or suspend the license belonging to
the accused, impose a fine between $100 and $2,500 or any combination of these.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The AREC has ____ days to give a written order concluding the hearing. - ANS 30 days.
Accused licensees or other parties to the hearing who aren't satisfied with the commission's
final decision have ____ days to file an application for a rehearing. - ANS 30 days.
A licensee must generally complete certain actions or conditions before a license becomes
active again. - ANS Suspended License
Licensee must wait at least ____ year (or longer if stated by the commissioner) before applying
for reinstatement. - ANS Revoked License.
Licensee can not renew license until the _________ is lifted. - ANS Restricted license.
An appellant may file a notice of appeal within ___ days after the commission renders it's final
order. The notice and a $_____ appeal bond should be filed in the circuit court of Montgomery
County. - ANS 30 days. $200.
What does one do when they've been misrepresented and the licensee is found guilty and the
buyer is left with significant losses but the licensee has no money? - ANS Seek help from the
Alabama Real Estate Recovery Fund.
In order to seek refuge from the Alabama Real Estate Recovery Fund, the claimants must: -
ANS Notify the commission in writing, and send the notice via certified mail with a return
receipt requested.
Where does this fund money come from? - ANS The $30 fee required by brokers/licensees to
receive their license. If the fund falls below $500,000, AREC will order each ACTIVE licensee to
pay a $30 assessment fee to replenish the fund.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
"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." - ANS Alabama Real
Estate Commission Mission Statement
Protect consumers from unprofessional practices. - ANS What is the primary purpose of
license laws?
Buyers, Sellers, Tenants, and Land/Building Owners - ANS 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: - ANS Areas covered by Real Estate
License Law.
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. - ANS Law of Contracts
I, Tripp Burnett, can legally draft contracts. T/F - ANS False.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,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. -
ANS General Property Law
Covers how an agency relationship is created, and the duties of an agent to the principal. -
ANS Law of Agency
Relate to the requirements of a licensee when preforming real estate activities within the state.
- ANS 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. - ANS 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 unethical business
practices, fraud, misrepresentation, and more. - ANS Consumer-Protection Laws
1928. - ANS The year the AREC was born.
Who appoints members (9) to the AREC board? - ANS 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? - ANS 7
All members serve _____ year terms. - ANS 5.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Appointments expire on what date? - ANS September 30th.
How many terms may you serve? - ANS No more than two consecutive terms.
At least _____ member of the board must be African American and appointed from any
congressional district. - ANS 1.
At least _______ member must be consumer appointed from any congressional district. -
ANS 1.
As a judicial body, the __________ has the duty and power to investigate claims of licensee
violations, hold hearings, and impose disciplinary action when required. - ANS AREC
An ________ may include issuing subpoenas, hearing witness testimony, and requesting
pertinent documents and records. - ANS Investigation
When an investigation reveals _______, a formal complaint is filed and the AREC will notify the
licensee and the broker in _________. - ANS 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. -
ANS 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. - ANS 15.
If found guilty the commission has the power to: - ANS Reprimand the licensee, require the
licensee to take continuing education course work, revoke or suspend the license belonging to
the accused, impose a fine between $100 and $2,500 or any combination of these.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The AREC has ____ days to give a written order concluding the hearing. - ANS 30 days.
Accused licensees or other parties to the hearing who aren't satisfied with the commission's
final decision have ____ days to file an application for a rehearing. - ANS 30 days.
A licensee must generally complete certain actions or conditions before a license becomes
active again. - ANS Suspended License
Licensee must wait at least ____ year (or longer if stated by the commissioner) before applying
for reinstatement. - ANS Revoked License.
Licensee can not renew license until the _________ is lifted. - ANS Restricted license.
An appellant may file a notice of appeal within ___ days after the commission renders it's final
order. The notice and a $_____ appeal bond should be filed in the circuit court of Montgomery
County. - ANS 30 days. $200.
What does one do when they've been misrepresented and the licensee is found guilty and the
buyer is left with significant losses but the licensee has no money? - ANS Seek help from the
Alabama Real Estate Recovery Fund.
In order to seek refuge from the Alabama Real Estate Recovery Fund, the claimants must: -
ANS Notify the commission in writing, and send the notice via certified mail with a return
receipt requested.
Where does this fund money come from? - ANS The $30 fee required by brokers/licensees to
receive their license. If the fund falls below $500,000, AREC will order each ACTIVE licensee to
pay a $30 assessment fee to replenish the fund.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
