ALABAMA REAL ESTATE FINAL EXAM STUDY GUIDE
Verified Test Questions And Answers
2024-2025
1. Specialization in Real Estate Brokerage
Question: How do real estate brokers commonly specialize in the industry?
Options:
A. By the type of mortgage financing required
B. By years of experience in the field
C. By the type of property (e.g., residential, commercial, land)
D. By the client’s background
Correct Answer: C. By type of property
Explanation:
• Brokers often specialize in specific property types (e.g., residential homes, commercial
buildings, farms).
• Why not others?
o Mortgage financing (A) is more relevant to lenders than brokers.
o Experience (B) doesn’t define specialization.
o Client background (D) is not a standard specialization method.
Pro Tip: Remember, brokers focus on property niches, not client demographics!
2. Legal Concept of Land
Question: Which of the following is included in the legal definition of "land"?
,Options:
A. A corn crop (already harvested)
B. A natural lake
C. A cut-down tree
D. An abandoned car
Correct Answer: B. A lake
Explanation:
• Land includes natural attachments (lakes, rivers, minerals).
• Why not others?
o Crops (A) and cut trees (C) are personal property once removed.
o Abandoned vehicles (D) are personal property, not land.
Memory Aid: Think "LAND = Natural, Permanent" (like lakes, not movable items).
3. Property Ownership Along a Non-Navigable Stream
Question: If a property borders a non-navigable stream, what does the owner legally own?
Options:
A. Land up to the low-water mark
B. Land beneath the stream to the midpoint
C. Land up to the high-water mark
D. All water up to the midpoint
Correct Answer: B. Underlying land to the middle of the waterway
Explanation:
• Riparian rights grant ownership to the center of a non-navigable stream.
• Why not others?
o (A) and (C) apply to navigable waters (owned by the state).
o (D) refers to water rights, not land ownership.
Pro Tip: Non-navigable = private ownership to the middle!
4. Abandoned Trade Fixtures
, Question: A retailer leaves custom display counters behind after moving out. What are they now
considered?
Options:
A. Trade fixtures (real property)
B. Trade fixtures (personal property)
C. Real property (abandoned)
D. Personal property (must be returned)
Correct Answer: C. Real property, since abandoned
Explanation:
• Trade fixtures are personal property unless abandoned, then they become part of the real
estate.
• Why not others?
o (A) and (B) apply only if removed.
o (D) is wrong because abandonment transfers ownership.
Memory Aid: "Left behind = Landlord’s now!"
5. Creating a Legal Life Estate
Question: How is a legal life estate established?
Options:
A. By voluntary grant from the owner
B. Automatically by law (e.g., dower/curtesy rights)
C. Through the four unities (joint tenancy)
D. Via defeasible conveyance
Correct Answer: B. By operation of law
Explanation:
• Legal life estates (e.g., homestead, dower) arise by law, not by choice.
• Why not others?
o (A) describes conventional life estates.
o (C) applies to joint tenancy.
o (D) refers to conditional grants.
Verified Test Questions And Answers
2024-2025
1. Specialization in Real Estate Brokerage
Question: How do real estate brokers commonly specialize in the industry?
Options:
A. By the type of mortgage financing required
B. By years of experience in the field
C. By the type of property (e.g., residential, commercial, land)
D. By the client’s background
Correct Answer: C. By type of property
Explanation:
• Brokers often specialize in specific property types (e.g., residential homes, commercial
buildings, farms).
• Why not others?
o Mortgage financing (A) is more relevant to lenders than brokers.
o Experience (B) doesn’t define specialization.
o Client background (D) is not a standard specialization method.
Pro Tip: Remember, brokers focus on property niches, not client demographics!
2. Legal Concept of Land
Question: Which of the following is included in the legal definition of "land"?
,Options:
A. A corn crop (already harvested)
B. A natural lake
C. A cut-down tree
D. An abandoned car
Correct Answer: B. A lake
Explanation:
• Land includes natural attachments (lakes, rivers, minerals).
• Why not others?
o Crops (A) and cut trees (C) are personal property once removed.
o Abandoned vehicles (D) are personal property, not land.
Memory Aid: Think "LAND = Natural, Permanent" (like lakes, not movable items).
3. Property Ownership Along a Non-Navigable Stream
Question: If a property borders a non-navigable stream, what does the owner legally own?
Options:
A. Land up to the low-water mark
B. Land beneath the stream to the midpoint
C. Land up to the high-water mark
D. All water up to the midpoint
Correct Answer: B. Underlying land to the middle of the waterway
Explanation:
• Riparian rights grant ownership to the center of a non-navigable stream.
• Why not others?
o (A) and (C) apply to navigable waters (owned by the state).
o (D) refers to water rights, not land ownership.
Pro Tip: Non-navigable = private ownership to the middle!
4. Abandoned Trade Fixtures
, Question: A retailer leaves custom display counters behind after moving out. What are they now
considered?
Options:
A. Trade fixtures (real property)
B. Trade fixtures (personal property)
C. Real property (abandoned)
D. Personal property (must be returned)
Correct Answer: C. Real property, since abandoned
Explanation:
• Trade fixtures are personal property unless abandoned, then they become part of the real
estate.
• Why not others?
o (A) and (B) apply only if removed.
o (D) is wrong because abandonment transfers ownership.
Memory Aid: "Left behind = Landlord’s now!"
5. Creating a Legal Life Estate
Question: How is a legal life estate established?
Options:
A. By voluntary grant from the owner
B. Automatically by law (e.g., dower/curtesy rights)
C. Through the four unities (joint tenancy)
D. Via defeasible conveyance
Correct Answer: B. By operation of law
Explanation:
• Legal life estates (e.g., homestead, dower) arise by law, not by choice.
• Why not others?
o (A) describes conventional life estates.
o (C) applies to joint tenancy.
o (D) refers to conditional grants.
