Alabama Real Estate License EXAM
NEWEST 2026 WITH COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS
After passing state exam, you have ___ days to apply for a Temporary License, either
on an Active or Inactive basis. -CORRECTANSWER 90
Temporary Licenses are only valid for ___ year(s), and cannot be renewed. -
CORRECTANSWER 1
For an Original License, you must pass a ___ hour post-license course. -
CORRECTANSWER 30
If Temporary License is ACTIVE, the post-license course must be completed within ___
months. -CORRECTANSWER 6.
If the post-license course is not completed within ___ year(s), the Temporary License
lapses. This period begins on the FIRST DAY of the month AFTER passing the state
exam. -CORRECTANSWER 1
For Broker's License, applicant must have ACTIVE Salesperson License for ___ out of
___ years immediately preceding the application. -CORRECTANSWER 2/3
,The fee to transfer your Salesperson License to a new Qualifying Broker is $___. -
CORRECTANSWER $25
An owner's mortgage includes a clause requiring a prepayment penalty. Three percent
of any outstanding loan principal would be charged by the lender if the owner paid off
the principal before the scheduled time. Payments were $296.88, due on the first of
each month, and included both principal and interest in arrears at 8% per annum. After
the owner's July 1 payment, her loan balance was $8,946.23. On August 1, after
handing her lender the check for her August 1 payment, the owner paid off the entire
remaining loan balance. What is the approximate prepayment penalty? -
CORRECTANSWER The monthly house payment, $296.88, includes both interest and
principal. The prepayment penalty is charged only on the principal, not on interest.
Therefore, one must determine how much the new principal loan balance will
be after the August 1st house payment is made. The calculations are as follows:
The loan balance after the July 1 payment is $8,946.23 x 0.08 interest rate = $715.70 a
year ÷ 12 months = $59.64 interest for July.
$296.88 monthly house payment $59.64 interest = 237.24 principal payment on August
1 payment.
,$8946.23 loan balance $237.24 principal paid in August leaves new principal balance of
$8708.99 after August 1st payment.
This is the amount on which the prepayment penalty will be based:
$8708.99 x 0.03 penalty = $261.27
A managing broker requires his licensees to mention a particular lender to buyers. The
broker has a financial interest in this particular mortgage lender. Which of the following
should the licensee recommend to buyers? -CORRECTANSWER Consider this lender,
disclosing the broker's interest, and other lenders.
Licensees should generally avoid recommending only one lender, and if a financial
interest is involved, it should be disclosed. Since rates can change, a licensee most
likely would not know which lender has the best rates. Licensees may provide a list of
lenders without having to display the lenders in any particular order.
When using the sales comparison approach, a licensee determines that a comparable
property's tile floor in the entry hall is worth $2,000. The subject property does not have
tile floors at all. Which of the following adjustments should be made? -
CORRECTANSWER The comparable should be adjusted downward.
, In the sales comparison (market data) approach to appraisal, it is always the
comparables that are adjusted, never the subject property. If the comparable is better
than the subject property, the adjustment to it is downward. If the comparable is not as
good as the subject property, the adjustment to it would be upward.
On February 1, a licensee with ABC Realty takes a 3month exclusive right-to-sell listing
on a house. On March 1, the licensee moves out of state and inactivates his license.
What happens to this listing? -CORRECTANSWER It remains a valid exclusive right-to-
sell listing contract with ABC Realty.
The listing belongs to the brokerage firm; it does not belong to an individual licensee.
The licensee takes the listing on behalf of the firm, and, if the licensee leaves or
becomes unlicensed during the listing, the listing would remain in whatever form it was
originally taken. The listing would still be in effect with the firm until it expires or is
terminated.
A person bought property from a seller and received a general warranty deed. Two
years later, the seller's brother came forth and claimed he had an ownership interest in
the property. The brother stated he knew the court would uphold his interest. In a
general warranty deed, the buyer is protected from this situation by the covenant-- -
CORRECTANSWER --of seisin.
NEWEST 2026 WITH COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS
After passing state exam, you have ___ days to apply for a Temporary License, either
on an Active or Inactive basis. -CORRECTANSWER 90
Temporary Licenses are only valid for ___ year(s), and cannot be renewed. -
CORRECTANSWER 1
For an Original License, you must pass a ___ hour post-license course. -
CORRECTANSWER 30
If Temporary License is ACTIVE, the post-license course must be completed within ___
months. -CORRECTANSWER 6.
If the post-license course is not completed within ___ year(s), the Temporary License
lapses. This period begins on the FIRST DAY of the month AFTER passing the state
exam. -CORRECTANSWER 1
For Broker's License, applicant must have ACTIVE Salesperson License for ___ out of
___ years immediately preceding the application. -CORRECTANSWER 2/3
,The fee to transfer your Salesperson License to a new Qualifying Broker is $___. -
CORRECTANSWER $25
An owner's mortgage includes a clause requiring a prepayment penalty. Three percent
of any outstanding loan principal would be charged by the lender if the owner paid off
the principal before the scheduled time. Payments were $296.88, due on the first of
each month, and included both principal and interest in arrears at 8% per annum. After
the owner's July 1 payment, her loan balance was $8,946.23. On August 1, after
handing her lender the check for her August 1 payment, the owner paid off the entire
remaining loan balance. What is the approximate prepayment penalty? -
CORRECTANSWER The monthly house payment, $296.88, includes both interest and
principal. The prepayment penalty is charged only on the principal, not on interest.
Therefore, one must determine how much the new principal loan balance will
be after the August 1st house payment is made. The calculations are as follows:
The loan balance after the July 1 payment is $8,946.23 x 0.08 interest rate = $715.70 a
year ÷ 12 months = $59.64 interest for July.
$296.88 monthly house payment $59.64 interest = 237.24 principal payment on August
1 payment.
,$8946.23 loan balance $237.24 principal paid in August leaves new principal balance of
$8708.99 after August 1st payment.
This is the amount on which the prepayment penalty will be based:
$8708.99 x 0.03 penalty = $261.27
A managing broker requires his licensees to mention a particular lender to buyers. The
broker has a financial interest in this particular mortgage lender. Which of the following
should the licensee recommend to buyers? -CORRECTANSWER Consider this lender,
disclosing the broker's interest, and other lenders.
Licensees should generally avoid recommending only one lender, and if a financial
interest is involved, it should be disclosed. Since rates can change, a licensee most
likely would not know which lender has the best rates. Licensees may provide a list of
lenders without having to display the lenders in any particular order.
When using the sales comparison approach, a licensee determines that a comparable
property's tile floor in the entry hall is worth $2,000. The subject property does not have
tile floors at all. Which of the following adjustments should be made? -
CORRECTANSWER The comparable should be adjusted downward.
, In the sales comparison (market data) approach to appraisal, it is always the
comparables that are adjusted, never the subject property. If the comparable is better
than the subject property, the adjustment to it is downward. If the comparable is not as
good as the subject property, the adjustment to it would be upward.
On February 1, a licensee with ABC Realty takes a 3month exclusive right-to-sell listing
on a house. On March 1, the licensee moves out of state and inactivates his license.
What happens to this listing? -CORRECTANSWER It remains a valid exclusive right-to-
sell listing contract with ABC Realty.
The listing belongs to the brokerage firm; it does not belong to an individual licensee.
The licensee takes the listing on behalf of the firm, and, if the licensee leaves or
becomes unlicensed during the listing, the listing would remain in whatever form it was
originally taken. The listing would still be in effect with the firm until it expires or is
terminated.
A person bought property from a seller and received a general warranty deed. Two
years later, the seller's brother came forth and claimed he had an ownership interest in
the property. The brother stated he knew the court would uphold his interest. In a
general warranty deed, the buyer is protected from this situation by the covenant-- -
CORRECTANSWER --of seisin.
