ALABAMA RECIPROCAL EXAMINATION SET
QUESTIONS AND ANSWERS SET A+
✔✔A Real Estate Brokerage Services Disclosure form is mandatory - ✔✔must present
early in the relationship-Broker must keep this form for 3 years
-A consumer information booklet is optional
✔✔Office Policy - ✔✔Qualifying broker must explain to each licensee annually & give
them a copy
Brokerage is not obligated by law to offer all brokerage services but they must explain
them and their options
✔✔Majority of lawyers recommend that the buyer sue - ✔✔everyone connected to the
property
-Alabama is a modified caveat emptor state
Exceptions
-New home sales-buyers think a new home doesn't have issues
-Health and safety
-Direct inquiry
-Assumption of a duty/special relationship
-Its illegal to make material misrepresentation
-Caveat emptor places the burden on the buyer
Caveat emptor does not apply to buyers agent
-They assume a greater risk
✔✔Fraud & Misrepresentation:Applies to Blank and no blank issues - ✔✔material facts
significant issues-a false representation of an important fact or issue
✔✔3 Factors that must exist - ✔✔1.Misrepresentation
2.Reliance
3.Damage
✔✔Two types of fraud - ✔✔1.Intention misrepresentation(active fraud)Realtor lying
, 2.Intention concealment-(Constructive fraud) one knows something that can cause
damage and fails to disclose it
✔✔Negligent misrepresentation - ✔✔A careless or inadvertent false statement
✔✔Negligence - ✔✔When a agent do something wrong another agent wouldn't do
Nesbitt Vs Fredrick discuss negligence
✔✔Suppression - ✔✔Withholding of a material fact that an agent knows would be
important to the client
Suppression 3 things that a agent have
-Knowledge of the defect
Duty to disclose
-Failure to disclose
✔✔Vicarious liability - ✔✔-One party or a legal principal may be liable for the words or
actions of another party
✔✔Inspections - ✔✔Never recommend only one inspector
-A agent should never guaranteed or recommend a inspector to protect
-As a agent do not occupancy inspector or perform it
-You need to document the refusal if they refuse to get a inspection
-Agent shall not draw conclusions or take owner ship of problems
-When a agent turns into a broker their previous licenses terminates
-A qualifying broker can only manage 1 off at a time in AL
✔✔Trust vs trustee - ✔✔Trustor-person who creates the trust could be a married couple
choose how to find trust
Trustee-Is Person who manages the trust may be a individual or multiple people
Handles day to day tasks could be a family memeber or a bank or guardian
✔✔ Alabama Reciprocal salesperson course - ✔✔-6 hour course is required
-40 multiple choice questions
-The Application for licensee and broker most be submitted within 90 calendar days of
passing state exam
-Failure to complete exam you may have to repay and retake the exam
✔✔The Alabama state law - ✔✔is written by the legislators
*****-The rules and regulations is written by the Real estate commissioners (Carries the
same weight as law)*****
The purpose of the commission is to adopt rules and regulations and to interpret the law
and enforce it .
QUESTIONS AND ANSWERS SET A+
✔✔A Real Estate Brokerage Services Disclosure form is mandatory - ✔✔must present
early in the relationship-Broker must keep this form for 3 years
-A consumer information booklet is optional
✔✔Office Policy - ✔✔Qualifying broker must explain to each licensee annually & give
them a copy
Brokerage is not obligated by law to offer all brokerage services but they must explain
them and their options
✔✔Majority of lawyers recommend that the buyer sue - ✔✔everyone connected to the
property
-Alabama is a modified caveat emptor state
Exceptions
-New home sales-buyers think a new home doesn't have issues
-Health and safety
-Direct inquiry
-Assumption of a duty/special relationship
-Its illegal to make material misrepresentation
-Caveat emptor places the burden on the buyer
Caveat emptor does not apply to buyers agent
-They assume a greater risk
✔✔Fraud & Misrepresentation:Applies to Blank and no blank issues - ✔✔material facts
significant issues-a false representation of an important fact or issue
✔✔3 Factors that must exist - ✔✔1.Misrepresentation
2.Reliance
3.Damage
✔✔Two types of fraud - ✔✔1.Intention misrepresentation(active fraud)Realtor lying
, 2.Intention concealment-(Constructive fraud) one knows something that can cause
damage and fails to disclose it
✔✔Negligent misrepresentation - ✔✔A careless or inadvertent false statement
✔✔Negligence - ✔✔When a agent do something wrong another agent wouldn't do
Nesbitt Vs Fredrick discuss negligence
✔✔Suppression - ✔✔Withholding of a material fact that an agent knows would be
important to the client
Suppression 3 things that a agent have
-Knowledge of the defect
Duty to disclose
-Failure to disclose
✔✔Vicarious liability - ✔✔-One party or a legal principal may be liable for the words or
actions of another party
✔✔Inspections - ✔✔Never recommend only one inspector
-A agent should never guaranteed or recommend a inspector to protect
-As a agent do not occupancy inspector or perform it
-You need to document the refusal if they refuse to get a inspection
-Agent shall not draw conclusions or take owner ship of problems
-When a agent turns into a broker their previous licenses terminates
-A qualifying broker can only manage 1 off at a time in AL
✔✔Trust vs trustee - ✔✔Trustor-person who creates the trust could be a married couple
choose how to find trust
Trustee-Is Person who manages the trust may be a individual or multiple people
Handles day to day tasks could be a family memeber or a bank or guardian
✔✔ Alabama Reciprocal salesperson course - ✔✔-6 hour course is required
-40 multiple choice questions
-The Application for licensee and broker most be submitted within 90 calendar days of
passing state exam
-Failure to complete exam you may have to repay and retake the exam
✔✔The Alabama state law - ✔✔is written by the legislators
*****-The rules and regulations is written by the Real estate commissioners (Carries the
same weight as law)*****
The purpose of the commission is to adopt rules and regulations and to interpret the law
and enforce it .
