ALABAMA REAL ESTATE STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SET A+
✔✔If a salesperson is on inactive status, he/she may engage in which of the following
real estate activities?
managing rental property for several owners
any activity except sales
none except as a principal
accepting listings - ✔✔none except as a principal
✔✔When a salesperson's license is placed on inactive status, the license is held by
_____.
the keeper of licenses
the salesperson
the salesperson's qualifying broker
the Real Estate Commission - ✔✔the Real Estate Commission
✔✔The recovery fund is funded from _____.
license fees and tax revenues
initial license fees
tax revenues
license renewal fees - ✔✔initial license fees
✔✔If a member of the public suffers as a result of a violation by a real estate licensee,
the recovery fund may be used to cover _____.
actual damages only
actual and compensatory damages
actual and compensatory damages and court costs
actual and compensatory damages and interest - ✔✔actual and compensatory
damages
✔✔Which of the following individuals is most likely to recover from the recovery fund?
,a principal in a real estate transaction
a licensee
the spouse of the debtor (licensee)
a bonding company - ✔✔a principal in a real estate transaction
✔✔When is a licensee permitted to recover from the recovery fund?
if he/she suffers damages when acting as a principal
any time he/she is damaged in a real estate transaction
never
if his/her principal refuses to pay an earned commission - ✔✔if he/she suffers damages
when acting as a principal
✔✔The recovery fund covers damages resulting from acts of _____.
a licensee acting on his/her own behalf
a licensee acting as an agent in a transaction
all of the answers shown
an inactive licensee - ✔✔a licensee acting as an agent in a transaction
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
multiple judgments against a single licensee is _____.
$25,000
$250,000
$50,000
$500,000 - ✔✔$50,000
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
damages for a single transaction (regardless of the number of claimants) is _____.
$500,000
$250,000
$50,000
$25,000 - ✔✔$25,000
✔✔When payment from the real estate recovery fund is authorized, the license of the
person against whom the claim is made _____.
may be terminated
is placed on inactive status
is not affected
is automatically suspended - ✔✔may be terminated
✔✔A payment is made from the real estate recovery fund, and the licensee's license is
terminated.
In order to reinstate the license, the licensee may be required to _____.
repay the fund plus interest at a rate of 12%
repay the fund plus interest at a rate of ½%
,wait 10 years and reapply for a license
repay the fund only - ✔✔repay the fund plus interest at a rate of 12%
✔✔f the location of a real estate business changes, the fee for the change is _____.
$25 for each license affected by the change
a single $25 fee for changing all affected licenses
a single $35 fee for changing all affected licenses
$35 for each license affected by the change - ✔✔$25 for each license affected by the
change
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission _____.
in person
orally or in writing
by certified mail
by mail - ✔✔by certified mail
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission, by certified mail, within _____.
6 months
30 days
10 days
90 days - ✔✔10 days
✔✔If a formal complaint is filed against a licensed salesperson, the Commission must
provide written notification of the complaint to _____.
the salesperson and his/her qualifying broker
no one
the salesperson's qualifying broker only
the salesperson only - ✔✔the salesperson and his/her qualifying broker
✔✔If a license law violation occurs, the Commission has the authority to _____.
impose a fine up to $10,000
all of the answers shown
impose a jail sentence
impose a fine up to $2,500 - ✔✔impose a fine up to $2,500
✔✔If a license law violation occurs, the Commission has the authority to _____.
impose a fine up to $2,500
revoke or suspend the licensee's license
reprimand the licensee
all of the answers shown - ✔✔all of the answers shown
, ✔✔If a license law violation occurs, the Commission has the authority to require the
licensee to _____.
all of the answers shown
pay a fine up to $2,500
complete continuing education
pay financial restitution - ✔✔all of the answers shown
✔✔The Commission has the authority to discipline _____.
both of the answers shown
real estate licensees
persons who practice real estate without a license
neither of the answers shown - ✔✔both of the answers shown
✔✔When someone practices real estate without a license, the Commission may _____.
none of the answers shown
impose a fine
file a civil suit
file criminal charges - ✔✔
✔✔When someone practices real estate without a license, the Commission may _____.
none of the answers shown
impose a fine
file a civil suit
file criminal charges - ✔✔impose a fine
✔✔A licensee who fails to disclose his/her status as a real estate licensee in an
advertisement is engaging in a(n) _____.
violation of the license law
acceptable business practice - ✔✔violation of the license law
✔✔Acting as a dual agent WITHOUT the knowledge and written consent of all parties
involved is a(n) _____.
acceptable business practice
violation of the license law - ✔✔violation of the license law
✔✔Acting as a dual agent WITH the knowledge and written consent of all parties
involved is a(n) _____.
violation of the license law
acceptable business practice - ✔✔acceptable business practice
✔✔When a licensee accepts and holds funds on behalf of another, the funds must be
deposited in _____.
a federally insured account located in any state
any bank account
QUESTIONS AND ANSWERS SET A+
✔✔If a salesperson is on inactive status, he/she may engage in which of the following
real estate activities?
managing rental property for several owners
any activity except sales
none except as a principal
accepting listings - ✔✔none except as a principal
✔✔When a salesperson's license is placed on inactive status, the license is held by
_____.
the keeper of licenses
the salesperson
the salesperson's qualifying broker
the Real Estate Commission - ✔✔the Real Estate Commission
✔✔The recovery fund is funded from _____.
license fees and tax revenues
initial license fees
tax revenues
license renewal fees - ✔✔initial license fees
✔✔If a member of the public suffers as a result of a violation by a real estate licensee,
the recovery fund may be used to cover _____.
actual damages only
actual and compensatory damages
actual and compensatory damages and court costs
actual and compensatory damages and interest - ✔✔actual and compensatory
damages
✔✔Which of the following individuals is most likely to recover from the recovery fund?
,a principal in a real estate transaction
a licensee
the spouse of the debtor (licensee)
a bonding company - ✔✔a principal in a real estate transaction
✔✔When is a licensee permitted to recover from the recovery fund?
if he/she suffers damages when acting as a principal
any time he/she is damaged in a real estate transaction
never
if his/her principal refuses to pay an earned commission - ✔✔if he/she suffers damages
when acting as a principal
✔✔The recovery fund covers damages resulting from acts of _____.
a licensee acting on his/her own behalf
a licensee acting as an agent in a transaction
all of the answers shown
an inactive licensee - ✔✔a licensee acting as an agent in a transaction
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
multiple judgments against a single licensee is _____.
$25,000
$250,000
$50,000
$500,000 - ✔✔$50,000
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
damages for a single transaction (regardless of the number of claimants) is _____.
$500,000
$250,000
$50,000
$25,000 - ✔✔$25,000
✔✔When payment from the real estate recovery fund is authorized, the license of the
person against whom the claim is made _____.
may be terminated
is placed on inactive status
is not affected
is automatically suspended - ✔✔may be terminated
✔✔A payment is made from the real estate recovery fund, and the licensee's license is
terminated.
In order to reinstate the license, the licensee may be required to _____.
repay the fund plus interest at a rate of 12%
repay the fund plus interest at a rate of ½%
,wait 10 years and reapply for a license
repay the fund only - ✔✔repay the fund plus interest at a rate of 12%
✔✔f the location of a real estate business changes, the fee for the change is _____.
$25 for each license affected by the change
a single $25 fee for changing all affected licenses
a single $35 fee for changing all affected licenses
$35 for each license affected by the change - ✔✔$25 for each license affected by the
change
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission _____.
in person
orally or in writing
by certified mail
by mail - ✔✔by certified mail
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission, by certified mail, within _____.
6 months
30 days
10 days
90 days - ✔✔10 days
✔✔If a formal complaint is filed against a licensed salesperson, the Commission must
provide written notification of the complaint to _____.
the salesperson and his/her qualifying broker
no one
the salesperson's qualifying broker only
the salesperson only - ✔✔the salesperson and his/her qualifying broker
✔✔If a license law violation occurs, the Commission has the authority to _____.
impose a fine up to $10,000
all of the answers shown
impose a jail sentence
impose a fine up to $2,500 - ✔✔impose a fine up to $2,500
✔✔If a license law violation occurs, the Commission has the authority to _____.
impose a fine up to $2,500
revoke or suspend the licensee's license
reprimand the licensee
all of the answers shown - ✔✔all of the answers shown
, ✔✔If a license law violation occurs, the Commission has the authority to require the
licensee to _____.
all of the answers shown
pay a fine up to $2,500
complete continuing education
pay financial restitution - ✔✔all of the answers shown
✔✔The Commission has the authority to discipline _____.
both of the answers shown
real estate licensees
persons who practice real estate without a license
neither of the answers shown - ✔✔both of the answers shown
✔✔When someone practices real estate without a license, the Commission may _____.
none of the answers shown
impose a fine
file a civil suit
file criminal charges - ✔✔
✔✔When someone practices real estate without a license, the Commission may _____.
none of the answers shown
impose a fine
file a civil suit
file criminal charges - ✔✔impose a fine
✔✔A licensee who fails to disclose his/her status as a real estate licensee in an
advertisement is engaging in a(n) _____.
violation of the license law
acceptable business practice - ✔✔violation of the license law
✔✔Acting as a dual agent WITHOUT the knowledge and written consent of all parties
involved is a(n) _____.
acceptable business practice
violation of the license law - ✔✔violation of the license law
✔✔Acting as a dual agent WITH the knowledge and written consent of all parties
involved is a(n) _____.
violation of the license law
acceptable business practice - ✔✔acceptable business practice
✔✔When a licensee accepts and holds funds on behalf of another, the funds must be
deposited in _____.
a federally insured account located in any state
any bank account
