Free Alabama Math Practice Test — LicenseIQ

Question 1

A licensee changes her residence address. She must notify the Commission in writing within

Accepted Answer

§34-27-35 and Rule 790-X-3-.01 require written notice of a business or residence address change within 30 days.

Question 2

A new highway interchange built next to a residential subdivision lowers home values. This is:

Accepted Answer

Loss in value caused by factors outside the property boundaries is external obsolescence.

Question 3

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 4

How does the client acknowledge receipt of an estimated closing statement under Commission rules?

Accepted Answer

Rule 790-X-3-.04 requires the client to acknowledge receipt with a dated signature; the statements are kept in the qualifying broker's file.

Question 5

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 6

Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

Accepted Answer

Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.

Question 7

An industry member of the Alabama Real Estate Commission must have been actively engaged as a broker or salesperson for at least how long?

Accepted Answer

§34-27-7 requires 10 years of Alabama residency and citizenship and 10 years as a broker or salesperson. Five years is the length of a commissioner's term, which is why it is a common wrong answer.

Question 8

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 9

Under Commission rules, a licensed real estate office must display

Accepted Answer

Rule 790-X-2-.07 (amended 2025) requires a sign with the company name as licensed, plainly and readily visible where exterior signs are permitted, or an interior entry and door sign where they are not.

Question 10

A buyer pays $245,300 and assumes a $100,000 mortgage on which mortgage tax was previously paid. What is the deed tax?

Accepted Answer

§40-22-1 taxes only the value in excess of a mortgage on which mortgage tax was paid. $245,300 - $100,000 = $145,300; 145,300 / 500 = 290.6, round up to 291; 291 x $0.50 = $145.50.

Question 11

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 12

An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:

Accepted Answer

Only the building depreciates: $350,000 - $75,000 = $275,000; $275,000 / 27.5 = $10,000. Using the full price gives $12,727 (wrong).

Question 13

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 14

A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

Accepted Answer

LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)

Question 15

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 16

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 17

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 18

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 19

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 20

On a $250,000 loan, how much is 2 discount points?

Accepted Answer

1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.

Question 21

Which person would be DISQUALIFIED from the consumer seat on the Alabama Real Estate Commission?

Accepted Answer

The consumer member may not have been a licensed broker or salesperson within the previous 10 years, so a license that expired six years ago disqualifies the person. The other candidates meet the age, residency, voter, property-ownership and no-felony requirements.

Question 22

What is the maximum number of consecutive terms an Alabama Real Estate Commission member may serve?

Accepted Answer

Commissioners serve five-year terms and may serve no more than two consecutive terms (§34-27-7). Time spent waiting for a successor's confirmation does not count toward the limit.

Question 23

An Alabama house sells for $245,300 with no assumed mortgage. What is the deed tax?

Accepted Answer

The rate is $0.50 per $500 or fraction. 245,300 / 500 = 490.6, round up to 491; 491 x $0.50 = $245.50. $245.30 forgets to round the fraction up; $490.60 uses $1 per $500.

Question 24

An Alabama licensee who moves to Alabama from Mississippi and becomes an Alabama resident must notify the Commission within

Accepted Answer

§34-27-32(c)(2) requires an existing licensee who becomes an Alabama resident to notify the Commission within 10 days. The 30-day period applies to business and residence address changes generally under §34-27-35.

Question 25

Which proposed team name violates Commission Rule 790-X-3-.16?

Accepted Answer

Rule 790-X-3-.16 (effective February 14, 2026) prohibits team names that suggest a company, including the word "company." The other names contain "team" or "group" and use no prohibited entity words.

Alabama real estate math practice test

1. A licensee changes her residence address. She must notify the Commission in writing within

2. A new highway interchange built next to a residential subdivision lowers home values. This is:

3. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

4. How does the client acknowledge receipt of an estimated closing statement under Commission rules?

5. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

6. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

7. An industry member of the Alabama Real Estate Commission must have been actively engaged as a broker or salesperson for at least how long?

8. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

9. Under Commission rules, a licensed real estate office must display

10. A buyer pays $245,300 and assumes a $100,000 mortgage on which mortgage tax was previously paid. What is the deed tax?

11. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

12. An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:

13. A broker received a 4.2% commission totaling $12,600. What was the sale price?

14. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

15. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

16. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

17. A home sells for $400,000 with a 5% total commission. What is the total commission?

18. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

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

20. On a $250,000 loan, how much is 2 discount points?

21. Which person would be DISQUALIFIED from the consumer seat on the Alabama Real Estate Commission?

22. What is the maximum number of consecutive terms an Alabama Real Estate Commission member may serve?

23. An Alabama house sells for $245,300 with no assumed mortgage. What is the deed tax?

24. An Alabama licensee who moves to Alabama from Mississippi and becomes an Alabama resident must notify the Commission within

25. Which proposed team name violates Commission Rule 790-X-3-.16?

Sources