AREC 2025 EXAM QUESTIONS WITH 100%
VERIFIED CORRECT ANSWERS!!
Woodrow helps his neighbor sell his home by assisting with negotiations. He receives no
compensation for his assistance. Based on this transaction, Woodrow _____
Doesn't need a real estate license
What must you have to apply as a real estate salesperson in Alabama
A sponsoring broker
Daisy holds a real estate license in Mississippi and looking to obtain a reciprocal license in
Alabama. Which requirement must she meet?
Provide her licensing history to the commission within 120 days before her reciprocal license is
issued.
Lucinda is 25 and licensed in Alabama. She has been actively engaged in real estate for the
past three years and has taken 60 hours of broker pre-licensing coursework. She used to be
licensed in Florida, but her license there was revoked four years ago. She also has five
unpaid parking tickets. Assuming she passes her licensing exam, is she qualified to be a
broker?
Maybe, if the commission approves her application.
Alabama broker Mandy has presented the Real Estate Brokerage Services Disclosure form
to consumer Kyla and asked Kyla to sign it. What's the purpose of Kyla's signature on this
form?
To acknowledge that Mandy's presented her with this form
Which of the following actions performed by these licensed salespersons is a common real
estate violation?
Benjamin places a lock box in an inconspicuous location on the sellers' property without their
permission.
, Alabama licensee Terrence can conduct a lottery to persuade people to do business with
him under which, of any, of the following circumstances?
He can't conduct a lottery under any of these circumstances. Holding these types of lotteries is
illegal in Alabama.
A buyer client is preparing an offer on a property. He wants to make sure his offer stands
out above all others and is accepted, so he discusses waiving the inspection contingency.
What should the agent do?
Encourage the buyer to get an inspection, and if he still wants to waive it, put it in writing that
you advised against waiving the inspection and have him sign.
In addition to serving as the listing agent for several clients, your own house is also on the
market. You receive a call from another licensee who wants to show her buyer client your
house. What must you immediately disclose to the buyer's agent and buyer?
You own the property.
Which of the following actions might be considered a red flag signaling mortgage fraud?
Your buyer requests a specific appraiser.
Which of the following is true about subagency in Alabama?
Subagents owe their client the same duties that the agent owes that client.
Which area of real estate law covers how an agency relationship is created and the duties of
an agent to the principal?
The law of agency
Which one of the following actions would be considered a real estate violation?
Hailey ran out of copies of the brokerage engagement form, so she drafted a copy on a blank
sheet of paper.
Licensee Bert's seller client asks him not to tell prospective buyers that he's selling his
house because he's lost his job and can't continue to afford the mortgage payments. Should
Bert obey him?
VERIFIED CORRECT ANSWERS!!
Woodrow helps his neighbor sell his home by assisting with negotiations. He receives no
compensation for his assistance. Based on this transaction, Woodrow _____
Doesn't need a real estate license
What must you have to apply as a real estate salesperson in Alabama
A sponsoring broker
Daisy holds a real estate license in Mississippi and looking to obtain a reciprocal license in
Alabama. Which requirement must she meet?
Provide her licensing history to the commission within 120 days before her reciprocal license is
issued.
Lucinda is 25 and licensed in Alabama. She has been actively engaged in real estate for the
past three years and has taken 60 hours of broker pre-licensing coursework. She used to be
licensed in Florida, but her license there was revoked four years ago. She also has five
unpaid parking tickets. Assuming she passes her licensing exam, is she qualified to be a
broker?
Maybe, if the commission approves her application.
Alabama broker Mandy has presented the Real Estate Brokerage Services Disclosure form
to consumer Kyla and asked Kyla to sign it. What's the purpose of Kyla's signature on this
form?
To acknowledge that Mandy's presented her with this form
Which of the following actions performed by these licensed salespersons is a common real
estate violation?
Benjamin places a lock box in an inconspicuous location on the sellers' property without their
permission.
, Alabama licensee Terrence can conduct a lottery to persuade people to do business with
him under which, of any, of the following circumstances?
He can't conduct a lottery under any of these circumstances. Holding these types of lotteries is
illegal in Alabama.
A buyer client is preparing an offer on a property. He wants to make sure his offer stands
out above all others and is accepted, so he discusses waiving the inspection contingency.
What should the agent do?
Encourage the buyer to get an inspection, and if he still wants to waive it, put it in writing that
you advised against waiving the inspection and have him sign.
In addition to serving as the listing agent for several clients, your own house is also on the
market. You receive a call from another licensee who wants to show her buyer client your
house. What must you immediately disclose to the buyer's agent and buyer?
You own the property.
Which of the following actions might be considered a red flag signaling mortgage fraud?
Your buyer requests a specific appraiser.
Which of the following is true about subagency in Alabama?
Subagents owe their client the same duties that the agent owes that client.
Which area of real estate law covers how an agency relationship is created and the duties of
an agent to the principal?
The law of agency
Which one of the following actions would be considered a real estate violation?
Hailey ran out of copies of the brokerage engagement form, so she drafted a copy on a blank
sheet of paper.
Licensee Bert's seller client asks him not to tell prospective buyers that he's selling his
house because he's lost his job and can't continue to afford the mortgage payments. Should
Bert obey him?
