Free Alabama Agency Practice Test — LicenseIQ

Question 1

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 2

Absent a written agency agreement, an Alabama licensee working with a consumer is considered

Accepted Answer

§34-27-82(b) provides that at initial contact and until a written agency agreement is signed, the licensee is a transaction facilitator and not an agent.

Question 3

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 4

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 5

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 6

A buyer's agent relays to her buyer a seller's false statement that the HVAC is two years old. The agent had no reason to doubt it. Under RECAD, the agent

Accepted Answer

§34-27-86(b) shields a licensee who passes along false information from a client, customer or another licensee unless the licensee knew or should have known it was false.

Question 7

A qualifying broker's written agency disclosure office policy must be explained to the company's licensees

Accepted Answer

§34-27-83 requires the policy to be explained at least once a year, and each licensee signs an acknowledgment that the company keeps for three years.

Question 8

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 9

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 10

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 11

How is an agency relationship created between an Alabama licensee and a consumer?

Accepted Answer

§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.

Question 12

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 13

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 14

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 15

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 16

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 17

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 18

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 19

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 20

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 21

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 22

Two salespersons under the same qualifying broker represent the buyer and the seller in one transaction, and the broker designates each as single agent for his or her client. Each salesperson is

Accepted Answer

§34-27-82(g) allows the qualifying broker to designate licensees as single agents, and states that a designated single agent is not a dual agent.

Question 23

Dual agency is permitted in Alabama only with

Accepted Answer

§34-27-85(c) allows a licensee to represent more than one client only with the prior written, informed consent of all clients; §34-27-36(b)(7) makes acting for more than one party without written consent a violation.

Question 24

A listing agent decides to buy the property she listed. She must

Accepted Answer

§34-27-36(b)(17) makes it a violation to fail to disclose to an owner the licensee's intention to buy property the licensee was engaged to sell; RECAD also requires prior timely written disclosure of personal interest.

Question 25

A listing agent knows the house has a cracked foundation hidden behind paneling. The buyer does not ask. Under the license law the agent

Accepted Answer

§34-27-36(b)(3) makes it a violation to fail to disclose known significant defects, including latent structural defects, to a potential buyer or tenant. Caveat emptor governs sellers' common-law liability, not licensee discipline.

Alabama real estate agency practice test

1. Which fiduciary duty continues even after the agency relationship has ended?

2. Absent a written agency agreement, an Alabama licensee working with a consumer is considered

3. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

4. An agency relationship can be terminated by all of the following EXCEPT:

5. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

6. A buyer's agent relays to her buyer a seller's false statement that the HVAC is two years old. The agent had no reason to doubt it. Under RECAD, the agent

7. A qualifying broker's written agency disclosure office policy must be explained to the company's licensees

8. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

9. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

10. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

11. How is an agency relationship created between an Alabama licensee and a consumer?

12. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

13. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

14. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

15. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

16. A property manager owes fiduciary duties primarily to the:

17. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

18. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

19. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

20. A material defect that a seller/agent must disclose is one that:

21. An agent authorized to perform a single specific act for a principal is a:

22. Two salespersons under the same qualifying broker represent the buyer and the seller in one transaction, and the broker designates each as single agent for his or her client. Each salesperson is

23. Dual agency is permitted in Alabama only with

24. A listing agent decides to buy the property she listed. She must

25. A listing agent knows the house has a cracked foundation hidden behind paneling. The buyer does not ask. Under the license law the agent

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