1. 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.
2. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?
Answer & explanation
Answer: C. 1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.
3. A special warranty deed warrants title only against defects that:
Answer & explanation
Answer: D. Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.
4. 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?
Answer & explanation
Answer: C. 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.
5. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:
Answer & explanation
Answer: D. Money belonging to others goes into a trust account; depositing it in an operating account is commingling.
6. In a mortgage, the borrower who pledges the property as security is the:
Answer & explanation
Answer: C. The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.
7. In a lease, the tenant holds a ____ estate and the landlord holds a ____.
Answer & explanation
Answer: D. The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.
8. Which rental activity requires an Alabama real estate license when performed for others for compensation?
Answer & explanation
Answer: B. Rule 790-X-1-.03 lists rental and management activities requiring a license, including listing, negotiating, procuring prospects and escrowing deposits or rent. Owners managing their own property are exempt.
9. A property manager owes fiduciary duties primarily to the:
Answer & explanation
Answer: D. The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.
10. Under §34-27-36(b)(12), paying or receiving a rebate in a real estate transaction is
Answer & explanation
Answer: A. §34-27-36(b)(12) lists paying or receiving any rebate in a real estate transaction as a prohibited act.
11. What is the maximum number of consecutive terms an Alabama Real Estate Commission member may serve?
Answer & explanation
Answer: D. 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.
12. What is the minimum age for an Alabama real estate salesperson license?
Answer & explanation
Answer: A. §34-27-32(a)(4) requires applicants to be at least 19 years of age, which is also Alabama's age of majority. Eighteen is the most common wrong answer because many other states use it.
13. Each separate location from which an Alabama company conducts real estate business must
Answer & explanation
Answer: C. §34-27-32(h) requires a separate company or branch office license for each location.
14. A licensee wants to buy a property through his own company for his brother. RECAD requires
Answer & explanation
Answer: D. §34-27-84(a)(6) lets a licensee act for himself, an immediate family member, or an entity in which he has an interest only with prior timely written disclosure to all parties.
15. For a deed to be valid it must be:
Answer & explanation
Answer: A. Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.
16. 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.
17. A licensee may place a sign on a property only
Answer & explanation
Answer: B. §34-27-36(b)(9) prohibits placing a sign on property without the owner's consent.
18. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:
Answer & explanation
Answer: C. A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.
19. A title search is performed primarily to:
Answer & explanation
Answer: C. A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)
20. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?
Answer & explanation
Answer: A. Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.
21. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):
Answer & explanation
Answer: D. The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.
22. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:
Answer & explanation
Answer: A. Substitution: a buyer will pay no more than the cost of an equally desirable alternative.
23. A listing agent decides to buy the property she listed. She must
Answer & explanation
Answer: A. §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.
24. Who collects the Alabama deed tax before a deed may be recorded?
Answer & explanation
Answer: A. §40-22-1 provides that the instrument cannot be recorded until the tax is paid, and the judge of probate collects it.
25. Which on-site manager is NOT covered by Alabama's exemption for property managers?
Answer & explanation
Answer: A. §34-27-2(b) exempts managers of apartment buildings or complexes but expressly excludes on-site managers of condominiums. Owners managing their own property are separately exempt.
Sources
Source verification pending. Confirm current requirements with your state regulator.