1. Within how many days after passing the exam must an applicant secure a qualifying broker?
Answer & explanation
Answer: C. §34-27-33 requires the applicant to secure a qualifying broker within 90 days after passing; the handbook likewise says a passing score is good for 90 days. Six months is the window to pass the exam after the course.
2. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?
Answer & explanation
Answer: D. Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.
3. Combining two adjacent lots into one larger parcel that is worth more than the two lots separately is called:
Answer & explanation
Answer: B. Assemblage is the act of combining parcels; the resulting increase in value is plottage.
4. A licensee may manage property for an owner for a fee only if there is:
Answer & explanation
Answer: D. Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.
5. Recording a deed in the county records primarily serves to:
Answer & explanation
Answer: B. Recording provides public (constructive) notice, protecting the owner's interest against later claims.
6. A landlord sells an apartment building with tenants under 12-month leases. The leases:
Answer & explanation
Answer: A. Leases run with the property; the buyer takes title subject to existing leases and inherits the landlord's obligations.
7. Private restrictions placed in a deed by a developer are called:
Answer & explanation
Answer: C. Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.
8. Which item would most likely be considered personal property rather than a fixture?
Answer & explanation
Answer: A. Items easily removed without damage, like a plug-in refrigerator, are usually personal property. Carpeting cut to fit, built-ins and HVAC are adapted or attached fixtures.
9. When a seller changes a term of the buyer's offer and returns it, this creates a:
Answer & explanation
Answer: C. Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.
10. After a sale closes, trust funds held by the broker must be disbursed within
Answer & explanation
Answer: D. Rule 790-X-3-.03 requires disbursement within seven business days after closing.
11. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?
Answer & explanation
Answer: C. Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.
12. A commercial space of 2,400 rentable square feet is quoted at $27 per square foot per year. What is the monthly rent?
Answer & explanation
Answer: B. Annual rent = 2,400 x $27 = $64,800; monthly = $64,800 / 12 = $5,400. Commercial rates are quoted per square foot per YEAR.
13. A salesperson wants to buy a FSBO home for his own investment. He must:
Answer & explanation
Answer: D. A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.
14. How is an agency relationship created between an Alabama licensee and a consumer?
Answer & explanation
Answer: B. §34-27-82(b) states an agency relationship cannot be assumed, implied or created without a written bilateral agency agreement signed by the licensee and the consumer.
15. Under RECAD as amended by Act 2025-59, a written brokerage agreement is required before a licensee
Answer & explanation
Answer: B. §34-27-82(e) bars requiring a written agreement just to show property, but requires one before listing property for sale or submitting an offer for compensation on behalf of a consumer.
16. Who is responsible for depositing trust funds in an Alabama company unless expressly relieved in writing?
Answer & explanation
Answer: D. Rule 790-X-3-.03 makes the qualifying broker responsible for deposits unless expressly relieved of that responsibility in writing, and requires the qualifying broker to be an authorized signer.
17. Under IRC Section 121, a single homeowner may generally exclude how much capital gain on a primary residence?
Answer & explanation
Answer: C. Section 121 allows up to $250,000 exclusion for a single filer ($500,000 married filing jointly) on a primary residence used 2 of the last 5 years.
18. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?
Answer & explanation
Answer: B. A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.
19. In a single-family residential sale, a licensee must give the client an estimated closing statement
Answer & explanation
Answer: B. Rule 790-X-3-.04 (effective February 14, 2025) requires a complete estimated closing statement each time a written offer or counteroffer is presented or prepared.
20. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:
Answer & explanation
Answer: D. Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.
21. A buyer agrees to give the seller a valuable painting in exchange for vacant land. Is there valid consideration?
Answer & explanation
Answer: D. Consideration is anything of value exchanged. A $0 purchase price would lack consideration, but goods or services can qualify.
22. Which statement about Alabama continuing education is accurate?
Answer & explanation
Answer: A. Rule 790-X-1-.13 allows inactive renewal without CE but requires the 15-hour requirement to reactivate, and Rule 790-X-2-.13 confirms 15 hours for activation. §34-27-35 bars carryover and says CE courses carry no passing or failing grade.
23. An applicant's license was revoked in Florida 18 months ago. Under Alabama law the applicant
Answer & explanation
Answer: C. §34-27-32(a)(3) bars an applicant whose license was revoked in any state within the two years before applying; older revocations require Commission approval. Eighteen months is inside that two-year window.
24. What fee does Alabama charge to change a license from active to inactive status?
Answer & explanation
Answer: C. §34-27-34(b) imposes a $25 fee for changing from inactive to active, but expressly charges no fee for going from active to inactive.
25. A licensee is negotiating the sale of a warehouse owned by an Alabama limited liability company. The RECAD disclosure requirement
Answer & explanation
Answer: B. §34-27-82(d) exempts transactions involving corporations, LLCs, partnerships, REITs, trusts, governmental entities and similar organizations from the disclosure requirement.
Sources
Source verification pending. Confirm current requirements with your state regulator.