CE Shop Alabama Final Course Exam Questions with Correct Answers 2026 | Real Estate License Study Guide & Practice Test

CE SHOPALABAMAFINAL COURSE EXAM b b b b b




QUESTIONS WITH CORRECTANSWERS 2026 b b b b




Sally's a first- b b




time homebuyer. She's a little nervous about finding a good real estate licensee to help her- she's
b b b b b b b b b b b b b b b b




read about a lot of scams out there. Which of the following provides protection for consu mers like
b b b b b b b b b b b b b b b b b b




Sally? - CORRECT ANSWER -License laws
b b b b b b




AREC commission members Dale, Sherry, Jasmine, and Ted have convened to imposed a penalt y
b b b b b b b b b b b b b b




on a broker who's been found guilty of fraud. Which of these reasons could prevent them fro m
b b b b b b b b b b b b b b b b b b




doing this work? - CORRECT ANSWER -
b b b b b b b




The fact that only four members have convened, and there need to be at least five
b b b b b b b b b b b b b b b




Which area of real estate law covers the rights of ownership and tenancy, and the government' s
b b b b b b b b b b b b b b b b




rights and authority under eminent domain? - CORRECT ANSWER -General property law
b b b b b b b b b b b b




What are the main ways that license laws ensure consumer protection? - CORRECT ANSWER - They
b b b b b b b b b b b b b b b




establish requirements, define activities, and set standards
b b b b b b b




Where will you find official documentation about the licensing of real estate professionals? - CORRECT
b b b b b b b b b b b b b b




ANSWER -State laws and regulations
b b b b b




Which of the following people would NOT get their questions answered by AREC? - CORRECT
b b b b b b b b b b b b b b




ANSWER -
b b




Brock is setting up a new brokerage in Huntsville. He asks himself, "I wonder what's the best w ay to
b b b b b b b b b b b b b b b b b b b




split commission with my employees?"
b b b b b




Which area of real estate law governs the use of contracts, explains the elements required to make
b b b b b b b b b b b b b b b b




a contract valid, and describes what happens if a breach of contract should occur? -
b b b b b b b b b b b b b b b




CORRECT ANSWER -Contract law b b b

,AREC is looking for a new commission member to fill the "consumer" slot. Which of the followi ng
b b b b b b b b b b b b b b b b b




people is eligible? - CORRECT ANSWER -
b b b b b b b




Terry, 43, who worked as a real estate licensee until he was 28. He now owns a small bakery in
b b b b b b b b b b b b b b b b b b b




Tuscaloosa.
b




In Alabama, hearings are typically held in which county? - CORRECT ANSWER -Montgomery
b b b b b b b b b b b b




Adele's not at all happy with the commission's final decision on her hearing because she believ es
b b b b b b b b b b b b b b b b




the commission is forcing her to sell off many of the assets of her brokerage. "Can it really d o
b b b b b b b b b b b b b b b b b b b b




that?" Adele wonders. Does she have a reason to file an application for a rehearing? -
b b b b b b b b b b b b b b b b




CORRECT ANSWER - b b




Yes, because she has reason to believe that the commission acted outside its legal authority.
b b b b b b b b b b b b b b




Which of the following is a disciplinary action that the commission may NOT take against a lice
b b b b b b b b b b b b b b b b




nsee? - CORRECT ANSWER -A jail sentence of up to 18 months
b b b b b b b b b b b b




Which of the following is NOT considered a license law violation? - CORRECT ANSWER - Listing
b b b b b b b b b b b b b b b




a family member's home, with proper disclosure
b b b b b b b




Which of the following is true about disciplinary actions in Alabama? - CORRECT ANSWER - A
b b b b b b b b b b b b b b b




suspended license can be reinstated once the licensee has completed certain actions
b b b b b b b b b b b b




The commission is holding a hearing for licensee Dana. Which of the following is she NOT allo wed
b b b b b b b b b b b b b b b b b




to do? - CORRECT ANSWER -Ask a commission member to testify on her behalf
b b b b b b b b b b b b b b




Adele's been a real estate agent in Alabama for the last three years. She just received notice fr om
b b b b b b b b b b b b b b b b b b




the Alabama Real Estate Commission assessing her $30. What's the assessment for? -
b b b b b b b b b b b b b




CORRECT ANSWER -To replenish the recovery fund b b b b b b

,Which of the following is true about Alabama Real Estate Commission hearings? -
b b b b b b b b b b b b




CORRECT ANSWER -They are usually held in Montgomery County.
b b b b b b b b b




Meghan filed a notice of appeal and a $200 bond in the circuit court of Montgomery County. S he
b b b b b b b b b b b b b b b b b b




did this 21 days after she received the outcome of her hearing. She is waiting now for the c
b b b b b b b b b b b b b b b b b b b




ommission to file the case record with the circuit court. Did Meghan file her notice of appeal c
b b b b b b b b b b b b b b b b b b




orrectly? - CORRECT ANSWER -Yes, she's done everything right so far.
b b b b b b b b b b b




Serious violations of the real estate license laws typically result in which disciplinary action or a
b b b b b b b b b b b b b b b




ctions? - CORRECT ANSWER -License suspension or revocation
b b b b b b b b




AREC has just noticed that the amount of money in the Alabama Recovery Fund has dropped b elow
b b b b b b b b b b b b b b b b b




$500,000. Can it impose a fee on an inactive licensee? - CORRECT ANSWER -
b b b b b b b b b b b b b b




No, but it can have inactive licensees pay the fee when they reactivate.
b b b b b b b b b b b b




If your license is suspended, it's only temporary. If your license is revoked, it is permanently re
b b b b b b b b b b b b b b b b




moved and requires
b . - CORRECT ANSWER -
b b b b b b b b b b




A new license application after the penalty period
b b b b b b b




Misrepresentation or false promises, fraud, improper disclosure, improper document and recor d b b b b b b b b b b b




keeping, net listings, and prohibited compensation practices - CORRECT ANSWER -
b b b b b b b b b b b




License law violations b b




Affirm, reverse, or modify the commission's decision, or return the case to the commission for
b b b b b b b b b b b b b b




further proceedings - CORRECT ANSWER -Circuit court's options with commission appeals
b b b b b b b b b b b




When a final decision is arbitrary, unreasonable, careless, in violation of a legal provision or a c
b b b b b b b b b b b b b b b b




ommission rule, outside the commission's legal authority, influenced by unlawful procedures, o r
b b b b b b b b b b b b b




opposed to reliable evidence - CORRECT ANSWER -Rehearing conditions
b b b b b b b b b

, Give testimony, examine witnesses, and engage an attorney - CORRECT ANSWER - Permitted
b b b b b b b b b b b b




licensee actions at a hearing
b b b b b




Reprimands, license revocation, or suspension, fines between $100 and $2,500, or both revoca
b b b b b b b b b b b b




tion/suspension and fines - CORRECT ANSWER -Disciplinary actions the commission may invoke
b b b b b b b b b b b b




Contracts, general property, agency, state-specific license laws - CORRECT ANSWER -
b b b b b b b b b b




The four areas of real estate law
b b b b b b b




Compensates consumers who are awarded a judgment for fraud, deceit, or misrepresentation i n a
b b b b b b b b b b b b b b




real estate transaction and have exhausted all other remedies to collect -
b b b b b b b b b b b b




CORRECT ANSWER -Alabama real estate recovery fund
b b b b b b




created in 1928 to administer real estate license law in Alabama - CORRECT ANSWER -
b b b b b b b b b b b b b b




Alabama Real Estate Commission (AREC)
b b b b b




Total number of commission members - CORRECT ANSWER -Nine
b b b b b b b b




Protect consumers from unprofessional practices - CORRECT ANSWER -Purpose of license
b b b b b b b b b b




An investigation may include - CORRECT ANSWER -
b b b b b b b




Subpoenas, witness testimony, and a request for documents and records
b b b b b b b b b




Licensee initial or assessment fee for the recovery fund - CORRECT ANSWER -$30
b b b b b b b b b b b b




Alabama residents who are 19 years of age or older, have a high school diploma/GED, have co
b b b b b b b b b b b b b b b b




mpleted 60 hours of salesperson coursework, and have achieved a score of 70% or better on t he
b b b b b b b b b b b b b b b b b b




licensing exam - CORRECT ANSWER -Specific requirements for licensure
b b b b b b b b b