FINAL COURSE EXAM

Which of the following is NOT considered a license law violation?

Baker just closed a transaction with his seller client. How long must Baker keep the transactional records?

Under RECAD, if operating as a single agent, a licensee may act as what?

Connor is a real estate salesperson, and DeVonn is a broker in Alabama. Which statement is true?

Which of the following is a reason why the Alabama Real Estate Commission might impose a disciplinary penalty against you?

Which of the following tasks would require a real estate license?

Which one of the following actions, if performed by a licensed salesperson, is a real estate violation?

Which of the following is a true statement regarding trust accounts?

If the commission finds that a licensee has committed serious crimes, it will likely _______ the individual’s license.

AREC is looking for a new commission member to fill the “consumer” slot. Which of the following people is eligible?

You might not have to worry about ______ in Alabama if you violate real estate compensation laws, but you should be concerned about other serious disciplinary penalties.

RECAD was designed to do all of the following EXCEPT which of these?

What responsibility does the seller’s agent have to the seller?

The commission is holding a hearing for licensee Dana. Which of the following is she NOT allowed to do?

What information about a property is the licensee required to disclose to potential buyers?

Appeal notices are typically filed in the circuit court of Montgomery County, along with a ______ appeal bond.

Noah’s seller client, Amy, has contracted with Trevor, who wants to buy Amy’s property. Another licensee, Jaco, approaches Amy with an offer that’s $20,000 more than Trevor’s, and he wants Amy to break her contract with Trevor. Which statement is true?

It’s October 1 of an even‑numbered year. Gary forgot to renew his license. What happens now?

Your assistant, Ella, often answers client questions about offers and negotiations. What do we know about Ella?

Which of the following actions is representative of an agent’s due diligence and ethical behavior?

When a licensee represents a seller, which one of the following statements is true about the licensee’s ability to list other properties for sale?

Jessica has just taken her Alabama real estate license exam. If she passes the exam, what will the exam proctor provide to her?

Which of the following is true about Alabama Real Estate Commission hearings?

Dean was accused of writing a fraudulent contract. Can Dean ask for a rehearing?

Gerome is an Alabama salesperson applying for his broker license. He’s moving across the state, and his broker license will be issued to a new brokerage. Which of the following is true?

Which of these is a broker’s responsibility under RECAD?

Bethenney is Jason’s agent. Jason made an offer and gave an earnest money check to Bethenney. What should she do with the check?

Agent Walt has met with Diane, a seller, three times. When should he have presented her with the Real Estate Brokerage Services Disclosure form?

It’s October 1 of an even‑numbered year, and Candace hasn’t completed her CE requirement. Which of the following is true?

Broker Samuela has explained her agency disclosure office policy to new agent Kyle, who signs an acknowledgment. What happens next?

Robert didn’t complete his post‑licensing education within six months of obtaining his temporary license. Can he continue to work as a salesperson?

Broker Joseph tells his client that a property is zoned as residential even though it’s zoned as commercial. This violation is an example of ______.

Tanya represents Marco, who’s selling his condo. Dan is interested in buying it; his agent is Terryl. According to RECAD, is this arrangement allowed?

Trust funds have better protection when deposited into trust accounts because they are ______.

What are trust funds?

Lisa wants to transfer her license to another brokerage, where she would be managed by Richard. Which of the following is NOT part of the license transfer process?

AREC has just asked Newman for a large number of his transactional records. What is Newman required to do now?

Marissa wants to renew her license. She has completed her CE and logged on to the renewal website. Does she need to do anything else?

Jojo, a licensee, has just received her annual briefing about her brokerage’s agency disclosure office policy and a copy of the policy. What is her responsibility?

A licensee has several tasks to perform for seller clients. What’s one of those tasks?

Xavier deposited a $3,000 earnest money check into his personal account for safekeeping while on vacation. When he returned, his balance had dropped. Which statement best represents Xavier’s issue?

Landon wants to transfer his license from his current managing broker to a new managing broker. Which of the following is true about his situation?

A licensee who advises a seller client to break an existing contract to accept a better offer is ________________.

When posting signage for an Alabama brokerage, what must a broker keep in mind?

How does the Alabama requirement for licensing protect the public?

Which of these is an example of a real estate violation?

Assuming licensee Shannon has actual knowledge of all of the following property issues, which of these issues should she disclose to prospective buyers?

Giles and Maddy both work at Hoover Realty. Giles has worked there for seven years, and Maddy’s for 10 years. Giles supervises all the associated licensees’ transactions. Which of the following is true?

Which of the following are considered trust funds?

Alabama broker Mandy has presented the Real Estate Brokerage Services Disclosure form to consumer Kyla and asked Kyla to sign it. What’s the purpose of Kyla’s signature on this form?

Danielle doesn’t live in Alabama. She’s entered into a written agreement with an Alabama broker to work together on a transaction. What kind of agreement is this?

The ______ enforces Alabama real estate rules and regulations.

Leonard, a licensee, has just received $800 in cash from a tenant for first month’s rent and security deposit. His broker Alyse tells him, “You need to hand that over to me, and I have three days to deposit this into a trust account.” Is she right or wrong?

What happens to the company license if the qualifying broker dies or becomes incapacitated?

In addition to serving as the listing agent for several clients, your own house is also on the market. What must you immediately disclose to the buyer’s agent and buyer?

Which of the following is a step that Pauline must take to change her license status from inactive to active?

Which situation might be addressed by a subject-to clause in the deed Jane is using to convey property to Moira?

The state’s claim to property when an owner dies without a will, heirs, or creditors is the power of ______.

What purpose does bulk zoning serve?

Your clients are looking at buying a $200,000 property with a 30‑year loan at 5% interest. If the amortization factor is 5.36822, what is their monthly principal and interest payment (per $1,000 of mortgage)?

Wendell just listed Barb’s home. What is his responsibility regarding disclosure of any easements?

Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others. What process is he utilizing?

FDIC insurance covers every owner of funds deposited into a trust account, up to __________each.

Municipality XYZ created a document regulating permitted land uses and zoning classifications within town boundaries. What did they create?

What type of valuation would be best to use when appraising new construction?

Licensees may be disciplined for violating Alabama compensation laws. Which of the following are possible penalties for doing so?

Nan is licensed in Mississippi. Her client has found the perfect property to buy—in Alabama. She wants to co‑broker this purchase, and her state allows it. Which of the following statements is true?

Serious violations of the real estate license laws typically result in which disciplinary action or actions?

Sebastian owns a country house that he vacates on holidays. What type of estate does he own?

The Gomez family purchased a home for $264,985 and it appraised at $272,402. With an assessment ratio of 25% and a tax rate of 2.8%, what is their annual tax bill?

Jarod bought a home in which he has all rights of ownership. What type of fee simple estate is this?

Residents of Tiny town complain that medium-rise condos are affecting the village-like character. What type of zoning is this?

How many parties does a deed of trust involve?

What classification of water rights includes the two smaller sub-classifications of navigable and non-navigable waterways?

Commander Halfback retires after 25 years of service in the Coast Guard. What type of loan should he use?

The Truth in Lending Act requires lenders to make certain ______ to consumers.

Gary has an 80% LTVR on his new $318,000 townhome with an annual interest rate of 4.125%. What’s his interest payment for the first month?

Which amendment to CERCLA states that “innocent landowners” aren’t responsible for cleanup of hazardous contamination?

A property manager has accounted for all income on a rental property. What additional information is needed to determine effective gross income?

Your seller wants to net $100,000 after a 5% commission. Assuming no closing costs, at what price must the home sell?

Which of the following is a buyer’s agent’s task or duty?

To which borrower might a lender most likely recommend an FHA loan?

The buyer you’re working with doesn’t want to enter into an agency relationship, but implied agency has begun. What should you do?

While hosting an open house, Liza speaks with prospective buyers. What duty may she be breaching if she helps them with incentives?

Your buyer client asks many questions. Which question can you answer while staying within your expertise?

Which of these situations does the Americans with Disabilities Act address?

Which agency enforces Title II under the ADA (1990) for public housing and referrals?

A buyer has a 30‑year, $400,000 loan with a 7% interest rate. How much of the first month’s mortgage payment is interest?

Blake is allowed to use his property in a way that’s prohibited under current zoning ordinances because of undue hardship. What gives him this permission?

At which level are police power and public land use controls enforced?

Which agency prohibits unfair acts, practices, or methods of competition and enforces federal antitrust and consumer protection laws nationally?

Joan is representing the buyer, Carlton, while Reggie represents the sellers. Which statement is true regarding the principals in this transaction?

A real estate ad states: “Custom homes for sale with scenic mountain views. Easy financing and low down payments.” What else must be included in the ad to comply with TILA?

Serena just finished a buyer presentation to Mark and Debbie Calhoun. What is one of their duties as buyers represented by an agent?

What sort of estate gives tenants the right to temporary possession during their tenancy?

Farquhar bought a house at a foreclosure auction and later couldn’t take possession. What likely happened?

If a buyer includes a clause in the offer that reads, “Buyer to beat all competing offers by $1,000 up to a price of $700,000,” what type of offer is this?

Neighboring firms agree that leads in one part of town will be sent to only one firm. What type of antitrust violation is this?

The Shores are buying a 3,000‑sq‑ft home from the Bishops. Mary analyzes the package to determine their loan repayment ability. What is Mary’s role?

A property was sold using a general warranty deed. Which statement is true?

Which of these situations is an example of designated (appointed) agency?

Your clients are interested in purchasing land with wetlands. Which statement is true?

In which situation has the licensee compromised the duties of loyalty and disclosure?

Kelvin isn’t sure how to read a legal description. What land description method did surveyors use?

Nico is buying a home for $625,000. With an 8% deposit and 5% closing costs, how much should he bring to closing?

While inspecting a rural home, Juanita noticed a metal vent pipe 25 feet from the house. This may indicate what potential environmental hazard?

Buyer Peter is eager to make an offer on a two‑story home, but there’s concern about the back bedroom addition. How do you respond?

A quitclaim deed does which of the following?

Which is the most serious consequence of treating a customer as a client?

How long does the borrower have to pay private mortgage insurance?

Rhonda is an unrepresented buyer who’s purchasing Tony’s townhome. What’s Rhonda’s relationship to Gary?

Javier represents Marcus, who’s selling his rental property to Ben. What is Ben’s relationship to Javier?

How do you calculate the monthly rate for annual taxes using a statutory year?

Over how many years is a residential income-producing property depreciated?

Which economic principle is at work when a property’s value increases because a neighboring property has increased in value?

What is the term for sites identified by the EPA under CERCLA?

Bart is under contract with Steven to purchase Steven’s home. Which statement is true?

Which of these scenarios is an example of two parties rescinding a contract?

Which of the following is an example of illegal market allocation?

What is the most common way that asbestos enters the body?