1. 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:
Answer & explanation
Answer: A. Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.
2. A salesperson changes companies. When may she begin performing licensed acts for the new company?
Answer & explanation
Answer: D. §34-27-34(e) bars a salesperson from performing any licensed act after changing qualifying brokers until the Commission issues a new active license. Mailing notice or a broker's signature does not authorize work.
3. 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.
4. A broker received a 4.2% commission totaling $12,600. What was the sale price?
Answer & explanation
Answer: C. Sale price = commission / rate = $12,600 / 0.042 = $300,000.
5. AREC may begin an investigation of a licensee
Answer & explanation
Answer: C. §34-27-36(a)(1) authorizes investigation on the Commission's own initiative or on a written, verified complaint.
6. A temporary licensee has not completed the post-license course six months after the license was issued. What happens?
Answer & explanation
Answer: A. Under §34-27-33(c)(2), failing to complete the course within six months places the temporary license on inactive status automatically. The licensee may still finish the course and convert during the remaining six months of validity.
7. A salesperson failed to renew by September 30 of the final year. On October 1 the license is
Answer & explanation
Answer: B. Under §34-27-35 an unrenewed license goes inactive October 1 and may be renewed during the following 12 months with fees and the $150 penalty; after that it lapses.
8. When an owner dies with no will and no heirs, the property passes to the state through:
Answer & explanation
Answer: C. Escheat transfers ownerless property to the state when there is no will and no heirs.
9. Mixing client trust funds with the broker's own business funds is:
Answer & explanation
Answer: B. Commingling client/escrow funds with the broker's operating funds is prohibited and grounds for discipline. Using those funds for personal purposes is conversion.
10. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):
Answer & explanation
Answer: D. 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.
11. A broker applicant who has never held a broker license must have held an active salesperson license for at least
Answer & explanation
Answer: B. §34-27-32(d)(1) requires an active license in any state for at least 24 months of the 36-month period immediately before application, plus the 60-hour broker course.
12. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:
Answer & explanation
Answer: C. Dividing territories or customers among competitors eliminates competition and is illegal market allocation.
13. A licensee applies for rehearing, and AREC takes no action on the application within 30 days. The application is
Answer & explanation
Answer: D. §34-27-37 provides that if the Commission enters no order within 30 days of the filing, the rehearing application is deemed denied. Filing does not change the decision's effective date.
14. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. 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.)
15. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?
Answer & explanation
Answer: A. Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.
16. 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?
Answer & explanation
Answer: C. 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.
17. 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.
18. A licensee changes her residence address. She must notify the Commission in writing within
Answer & explanation
Answer: C. §34-27-35 and Rule 790-X-3-.01 require written notice of a business or residence address change within 30 days.
19. A licensee must give a copy of a signed purchase contract to
Answer & explanation
Answer: A. §34-27-36(b)(10) requires prompt delivery of listings, contracts, leases and other documents to each party executing them.
20. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?
Answer & explanation
Answer: B. Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.
21. 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?
Answer & explanation
Answer: B. 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.
22. Under the statute of frauds, a real estate sales contract must be:
Answer & explanation
Answer: C. The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.
23. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. 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.)
24. Which statement about dual agency is correct?
Answer & explanation
Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.
25. 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.
Sources
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