ALABAMA REAL ESTATE 2024/2025 EXAM QUESTIONS WITH
THE LATEST AND UPDATED SCORE.
Special or Specific Agency -- Answer ✔✔ The Principal gives the agent authority to do
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
one specific thing-sell property. They enter into a contract that stipulates how the task
_ _ _ _ _ _ _ _ _ _ _ _ _ _
will be done-multiple listings of the property, commission paid etc.
_ _ _ _ _ _ _ _ _
General -- Answer ✔✔ Principal and agent enter into a contract giving the agent the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
authority to conduct several activities-show property to renters, check references and
_ _ _ _ _ _ _ _ _ _ _
negotiate leases. _
Designated agency -- Answer ✔✔ A dual agent cannot fully represent both parties so
_ _ _ _ _ _ _ _ _ _ _ _ _ _
the agent designates another agent in their office to represent either party-usually the
_ _ _ _ _ _ _ _ _ _ _ _ _
buyer.
Nonagency -- Answer ✔✔ transaction or facilitative-the agent facilitates the transaction
_ _ _ _ _ _ _ _ _ _
by showing properties and assisting with paperwork. Both parties are on their own
_ _ _ _ _ _ _ _ _ _ _ _ _ _
when it comes to their interests.
_ _ _ _ _
Listing contract -- Answer ✔✔ it is not between the agent and the seller but between
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
the seller and the broker
_ _ _ _
Exclusive Right to Sell -- Answer ✔✔ Most advantageous type of listing-gives the
_ _ _ _ _ _ _ _ _ _ _ _ _
broker the sole right to market a property. Regardless of who finds a ready, willing
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
and able buyer, the broker receives a commission.
_ _ _ _ _ _ _
Exclusive Agency -- Answer ✔✔ agent markets the property but if the principal sells it
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
then the agent does not receive a commission
_ _ _ _ _ _ _
,Open listing-general -- Answer ✔✔ gives the right to market the property to a number
_ _ _ _ _ _ _ _ _ _ _ _ _ _
_of brokers. The principal can sell it themselves and only the broker that brings a
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
ready, willing and able buyer receives commission.
_ _ _ _ _ _
Net listing -- Answer ✔✔ broker receives the difference between the selling price and
_ _ _ _ _ _ _ _ _ _ _ _ _ _
the price that the owner wants
_ _ _ _ _
Multiple listings -- Answer ✔✔ Multiple listing systems or services are marketing tools.
_ _ _ _ _ _ _ _ _ _ _ _ _
Allows brokers to share listings and commissions.
_ _ _ _ _ _
Buyer agency -- Answer ✔✔ binds the broker to look out for the buyers best
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
interests. With a dual agency the broker is not able to tell the buyer if the property is
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
overpriced or if another property is better. _ _ _ _ _ _
Exclusive buyer agency-exclusive right to represent -- Answer ✔✔ gives the broker the
_ _ _ _ _ _ _ _ _ _ _ _
_exclusive right to help a buyer find a property. The broker is paid a commission even
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
if the buyer buys a property during the time period of the agreement without the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
brokers help. _
Exclusive Agency Buyer Agency -- Answer ✔✔ does not guarantee a commission. The
_ _ _ _ _ _ _ _ _ _ _ _ _
broker is given exclusivity over other agents to find a property for the buyer, but if the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_buyer finds a property he does not have to pay the broker a fee.
_ _ _ _ _ _ _ _ _ _ _ _ _
Open buyer agency -- Answer ✔✔ buyer enters into an agreement with a number of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
brokers to find a property. only the broker that finds the property that the buyer
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
purchases receives a commission. no commission is paid if the buyer finds his own
_ _ _ _ _ _ _ _ _ _ _ _ _ _
property.
Termination of agency -- Answer ✔✔ PERFORMANCE- happy seller and happy buyer
_ _ _ _ _ _ _ _ _ _ _ _
at closing
_
expiration of the listing, mutual agreement, _ _ _ _ _ _
RENUNCIATION- resignation of the agent _ _ _ _
REVOCATION-principal firing agent _ _
, Real estate settlement procedures act (RESPA) -- Answer ✔✔ a federal law requires
_ _ _ _ _ _ _ _ _ _ _ _ _
certain disclosures such as a standard Good Faith Estimate (GFE) that explains key loat
_ _ _ _ _ _ _ _ _ _ _ _ _
_terms and escribes a best estimate of closing costs
_ _ _ _ _ _ _ _
Mandated disclosures -- Answer ✔✔ presence of lead paint in homes built before
_ _ _ _ _ _ _ _ _ _ _ _ _
1978. A seller does not have to test for lead paint, but must disclose the fact if known.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
if property is in a flood zone as designated by the Federal Emergency Management
_ _ _ _ _ _ _ _ _ _ _ _ _ _
(FEMA)
the need for the buyer to purchase flood disaster insurance, b/c the current owner has
_ _ _ _ _ _ _ _ _ _ _ _ _ _
_received flood disaster insurance from the federal govt
_ _ _ _ _ _ _
other disclosures -- Answer ✔✔ some states require disclosures of sex offenders due
_ _ _ _ _ _ _ _ _ _ _ _ _
to Megan's Law
_ _
Property stigmas -- Answer ✔✔ seller and seller's agent need to be honest about
_ _ _ _ _ _ _ _ _ _ _ _ _ _
anything int he history of the property that could hinder the sale; such as criminal acts
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
or deaths that are associated with the property.
_ _ _ _ _ _ _
Fiduciary responsibilities of agents -- Answer ✔✔ loyalty, obedience, disclosure,
_ _ _ _ _ _ _ _ _ _
confidentiality and reasonable care and diligence and accountability _ _ _ _ _ _ _
fiduciary notes -- Answer ✔✔ disclosure responsibilities are for both buyer-agent and
_ _ _ _ _ _ _ _ _ _ _ _
seller-agent.
The agent has a fiduciary responsibility to disclose any relationships or fees he has that
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
affect the seller or buyer. The agent must also disclose any known financial issues the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
buyer might have. _ _
Standards for commission -- Answer ✔✔ there is no standard percentage for
_ _ _ _ _ _ _ _ _ _ _ _
commission. Any attempt to standardize commission rates among brokers is _ _ _ _ _ _ _ _ _ _
considered price fixing according to federal law _ _ _ _ _ _
Bundle of Rights -- Answer ✔✔ Occupy, use and enjoy your property including the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
land, water and air. Right to employ the property in productive ways such as farming
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
or leasing and to sell, bequest, give or lease the property in part or in total.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
THE LATEST AND UPDATED SCORE.
Special or Specific Agency -- Answer ✔✔ The Principal gives the agent authority to do
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
one specific thing-sell property. They enter into a contract that stipulates how the task
_ _ _ _ _ _ _ _ _ _ _ _ _ _
will be done-multiple listings of the property, commission paid etc.
_ _ _ _ _ _ _ _ _
General -- Answer ✔✔ Principal and agent enter into a contract giving the agent the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
authority to conduct several activities-show property to renters, check references and
_ _ _ _ _ _ _ _ _ _ _
negotiate leases. _
Designated agency -- Answer ✔✔ A dual agent cannot fully represent both parties so
_ _ _ _ _ _ _ _ _ _ _ _ _ _
the agent designates another agent in their office to represent either party-usually the
_ _ _ _ _ _ _ _ _ _ _ _ _
buyer.
Nonagency -- Answer ✔✔ transaction or facilitative-the agent facilitates the transaction
_ _ _ _ _ _ _ _ _ _
by showing properties and assisting with paperwork. Both parties are on their own
_ _ _ _ _ _ _ _ _ _ _ _ _ _
when it comes to their interests.
_ _ _ _ _
Listing contract -- Answer ✔✔ it is not between the agent and the seller but between
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
the seller and the broker
_ _ _ _
Exclusive Right to Sell -- Answer ✔✔ Most advantageous type of listing-gives the
_ _ _ _ _ _ _ _ _ _ _ _ _
broker the sole right to market a property. Regardless of who finds a ready, willing
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
and able buyer, the broker receives a commission.
_ _ _ _ _ _ _
Exclusive Agency -- Answer ✔✔ agent markets the property but if the principal sells it
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
then the agent does not receive a commission
_ _ _ _ _ _ _
,Open listing-general -- Answer ✔✔ gives the right to market the property to a number
_ _ _ _ _ _ _ _ _ _ _ _ _ _
_of brokers. The principal can sell it themselves and only the broker that brings a
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
ready, willing and able buyer receives commission.
_ _ _ _ _ _
Net listing -- Answer ✔✔ broker receives the difference between the selling price and
_ _ _ _ _ _ _ _ _ _ _ _ _ _
the price that the owner wants
_ _ _ _ _
Multiple listings -- Answer ✔✔ Multiple listing systems or services are marketing tools.
_ _ _ _ _ _ _ _ _ _ _ _ _
Allows brokers to share listings and commissions.
_ _ _ _ _ _
Buyer agency -- Answer ✔✔ binds the broker to look out for the buyers best
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
interests. With a dual agency the broker is not able to tell the buyer if the property is
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
overpriced or if another property is better. _ _ _ _ _ _
Exclusive buyer agency-exclusive right to represent -- Answer ✔✔ gives the broker the
_ _ _ _ _ _ _ _ _ _ _ _
_exclusive right to help a buyer find a property. The broker is paid a commission even
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
if the buyer buys a property during the time period of the agreement without the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
brokers help. _
Exclusive Agency Buyer Agency -- Answer ✔✔ does not guarantee a commission. The
_ _ _ _ _ _ _ _ _ _ _ _ _
broker is given exclusivity over other agents to find a property for the buyer, but if the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_buyer finds a property he does not have to pay the broker a fee.
_ _ _ _ _ _ _ _ _ _ _ _ _
Open buyer agency -- Answer ✔✔ buyer enters into an agreement with a number of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
brokers to find a property. only the broker that finds the property that the buyer
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
purchases receives a commission. no commission is paid if the buyer finds his own
_ _ _ _ _ _ _ _ _ _ _ _ _ _
property.
Termination of agency -- Answer ✔✔ PERFORMANCE- happy seller and happy buyer
_ _ _ _ _ _ _ _ _ _ _ _
at closing
_
expiration of the listing, mutual agreement, _ _ _ _ _ _
RENUNCIATION- resignation of the agent _ _ _ _
REVOCATION-principal firing agent _ _
, Real estate settlement procedures act (RESPA) -- Answer ✔✔ a federal law requires
_ _ _ _ _ _ _ _ _ _ _ _ _
certain disclosures such as a standard Good Faith Estimate (GFE) that explains key loat
_ _ _ _ _ _ _ _ _ _ _ _ _
_terms and escribes a best estimate of closing costs
_ _ _ _ _ _ _ _
Mandated disclosures -- Answer ✔✔ presence of lead paint in homes built before
_ _ _ _ _ _ _ _ _ _ _ _ _
1978. A seller does not have to test for lead paint, but must disclose the fact if known.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
if property is in a flood zone as designated by the Federal Emergency Management
_ _ _ _ _ _ _ _ _ _ _ _ _ _
(FEMA)
the need for the buyer to purchase flood disaster insurance, b/c the current owner has
_ _ _ _ _ _ _ _ _ _ _ _ _ _
_received flood disaster insurance from the federal govt
_ _ _ _ _ _ _
other disclosures -- Answer ✔✔ some states require disclosures of sex offenders due
_ _ _ _ _ _ _ _ _ _ _ _ _
to Megan's Law
_ _
Property stigmas -- Answer ✔✔ seller and seller's agent need to be honest about
_ _ _ _ _ _ _ _ _ _ _ _ _ _
anything int he history of the property that could hinder the sale; such as criminal acts
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
or deaths that are associated with the property.
_ _ _ _ _ _ _
Fiduciary responsibilities of agents -- Answer ✔✔ loyalty, obedience, disclosure,
_ _ _ _ _ _ _ _ _ _
confidentiality and reasonable care and diligence and accountability _ _ _ _ _ _ _
fiduciary notes -- Answer ✔✔ disclosure responsibilities are for both buyer-agent and
_ _ _ _ _ _ _ _ _ _ _ _
seller-agent.
The agent has a fiduciary responsibility to disclose any relationships or fees he has that
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
affect the seller or buyer. The agent must also disclose any known financial issues the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
buyer might have. _ _
Standards for commission -- Answer ✔✔ there is no standard percentage for
_ _ _ _ _ _ _ _ _ _ _ _
commission. Any attempt to standardize commission rates among brokers is _ _ _ _ _ _ _ _ _ _
considered price fixing according to federal law _ _ _ _ _ _
Bundle of Rights -- Answer ✔✔ Occupy, use and enjoy your property including the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
land, water and air. Right to employ the property in productive ways such as farming
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
or leasing and to sell, bequest, give or lease the property in part or in total.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
