ALABAMA RECIPROCAL STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SET A+
✔✔Recovery fund can be invested - ✔✔In any investment that is legal for a domestic
life insurance company . Interest wil deposited in the revenue fund with ½ being
transmitted to the university of alabama center for real estate.
-The fund only covers licensees not brokerages
-Interest and court costs are not covered
✔✔Grounds for disciplinary action - ✔✔The commission can:
Revoke the license,suspend the license,fine of $100 to $2500 dollars, reprimand the
licensee,require licensee to take continuing education, require restitution by licensee
-Class A misdemeanor is committed by any person or corporation (even non-licensees)
who
-Violate any provisions of AL license law
-Files false information with the commission
✔✔Grounds for penalties - ✔✔1.Procuring a license by fraud misrepresentation
2.Engaging in fraud or dishonesty and misrepresentation
✔✔Caveat Emptor - ✔✔Buyer beware
✔✔License law - ✔✔Seems to say that the listing agent would need to disclose defects
to the buyer or the buyers agent
-Statutory law is binding but the courts interpret the law on case by case basis
-Failing to keep funds for 3 years
✔✔Earnest money - ✔✔-Escrow account( Earnest money)FID Alabama bank Operating
account (Commission & fee)
Trust funds-Money being held in trust for someone else
-After a closing a broker has 7 days to transfer funds
Class A misdemeanor is someone violates license law
-All cash funds most be deposited immediately or check
, DIsciplinary action
-Giving the commission a check that is returned because of insufficient funds
When buying property from company licensee must write a handwritten letter to broker
with -intentions
A broker cannot accept a net listing agreement
-A net listing is one that stipulates a net price to be received by the owner with the
excess due to be received by the broker as his commission
-A qualifying broker must keep all documents and files for at least 3 years
✔✔The commission can order or decline an order - ✔✔to cease and desist from
activities requiring a license under this chapter when the accused person firm is not
licensed
-The order shall be entered by the executive director after a finding of a probable cause
the order shall become final after 15 days after its service upon the accused, unless
requests a hearing before the commission.
-A licensee must notify commission or broker about charges with 10 days
-A guaranteeing agency is an entity that insures federal loans by repaying the loan
holder if the borrower defaults on the loan:
-Lotteries are illegal in alabama
✔✔Blank closing states required per offer & per counter offer - ✔✔2 closing statements
is required for intial offer (Buyer&Seller)
Counter offer gonna be additional 2
Which is 4 closing statements total
✔✔Licensee has to notify commission - ✔✔- When a legal action starts
-When a legal action ends
✔✔When an action begins involving - ✔✔Criminal prosecution
-Civil complaint involving a real estate
-goodwill of an existing real estate business
-The licensee has 10 days to notify the commission : In certified mail , must include
copy of the summons and complaint
✔✔When the matter is resolved - ✔✔-The licensee must notify commission within 10
days
-In writing by mail
-If verdict or judgement was rendered
If it was dismissed
✔✔Investigated by AREC - ✔✔Formal complaint filed-Hearing-Rehearing-Appealed to
circuit court
✔✔During investigation commission may - ✔✔Issue subpoenas-
QUESTIONS AND ANSWERS SET A+
✔✔Recovery fund can be invested - ✔✔In any investment that is legal for a domestic
life insurance company . Interest wil deposited in the revenue fund with ½ being
transmitted to the university of alabama center for real estate.
-The fund only covers licensees not brokerages
-Interest and court costs are not covered
✔✔Grounds for disciplinary action - ✔✔The commission can:
Revoke the license,suspend the license,fine of $100 to $2500 dollars, reprimand the
licensee,require licensee to take continuing education, require restitution by licensee
-Class A misdemeanor is committed by any person or corporation (even non-licensees)
who
-Violate any provisions of AL license law
-Files false information with the commission
✔✔Grounds for penalties - ✔✔1.Procuring a license by fraud misrepresentation
2.Engaging in fraud or dishonesty and misrepresentation
✔✔Caveat Emptor - ✔✔Buyer beware
✔✔License law - ✔✔Seems to say that the listing agent would need to disclose defects
to the buyer or the buyers agent
-Statutory law is binding but the courts interpret the law on case by case basis
-Failing to keep funds for 3 years
✔✔Earnest money - ✔✔-Escrow account( Earnest money)FID Alabama bank Operating
account (Commission & fee)
Trust funds-Money being held in trust for someone else
-After a closing a broker has 7 days to transfer funds
Class A misdemeanor is someone violates license law
-All cash funds most be deposited immediately or check
, DIsciplinary action
-Giving the commission a check that is returned because of insufficient funds
When buying property from company licensee must write a handwritten letter to broker
with -intentions
A broker cannot accept a net listing agreement
-A net listing is one that stipulates a net price to be received by the owner with the
excess due to be received by the broker as his commission
-A qualifying broker must keep all documents and files for at least 3 years
✔✔The commission can order or decline an order - ✔✔to cease and desist from
activities requiring a license under this chapter when the accused person firm is not
licensed
-The order shall be entered by the executive director after a finding of a probable cause
the order shall become final after 15 days after its service upon the accused, unless
requests a hearing before the commission.
-A licensee must notify commission or broker about charges with 10 days
-A guaranteeing agency is an entity that insures federal loans by repaying the loan
holder if the borrower defaults on the loan:
-Lotteries are illegal in alabama
✔✔Blank closing states required per offer & per counter offer - ✔✔2 closing statements
is required for intial offer (Buyer&Seller)
Counter offer gonna be additional 2
Which is 4 closing statements total
✔✔Licensee has to notify commission - ✔✔- When a legal action starts
-When a legal action ends
✔✔When an action begins involving - ✔✔Criminal prosecution
-Civil complaint involving a real estate
-goodwill of an existing real estate business
-The licensee has 10 days to notify the commission : In certified mail , must include
copy of the summons and complaint
✔✔When the matter is resolved - ✔✔-The licensee must notify commission within 10
days
-In writing by mail
-If verdict or judgement was rendered
If it was dismissed
✔✔Investigated by AREC - ✔✔Formal complaint filed-Hearing-Rehearing-Appealed to
circuit court
✔✔During investigation commission may - ✔✔Issue subpoenas-
