ALABAMA RECIPROCAL EXAM ALL QUESTIONS AND
ANSWERS SET A+
✔✔To renew a license, a licensee must submit a renewal form and all other renewal
requirements to the Commission by _____ of the second year of the license period. -
✔✔August 31
✔✔If a licensee fails to submit the renewal requirements by September 30th of the final
year of the license period, his/her license _____. - ✔✔is placed on inactive status
✔✔A licensee fails to submit the renewal requirements by August 31 of the final year of
the license period.If the licensee wishes to renew during the first year of the new license
period, she must _____. - ✔✔meet renewal requirements and pay a penalty
✔✔A licensee fails to renew his license during the first year of the new license period,
and his license lapses.If the licensee wishes to return to his real estate practice, he
must _____. - ✔✔meet all of the requirements for an original license
✔✔To renew a license, a licensee must complete continuing education courses totaling
_____ hours. - ✔✔15
✔✔Which of the following individuals would be exempt from continuing education
requirements? - ✔✔a new licensee who has been licensed for 6 months
✔✔If a salesperson is on inactive status, he/she may engage in ALL real estate
activities? - ✔✔false
✔✔When a salesperson's license is placed on inactive status, the license is held by
_____. - ✔✔the Real Estate Commission
✔✔The recovery fund is funded from _____. - ✔✔initial license fees
,✔✔If a member of the public suffers as a result of a violation by a real estate licensee,
the recovery fund may be used to cover _____. - ✔✔actual and compensatory damages
✔✔Which of the following individuals is most likely to recover from the recovery fund? -
✔✔a principal in a real estate transaction
✔✔When is a licensee permitted to recover from the recovery fund? - ✔✔if he/she
suffers damages when acting as a principal
✔✔The recovery fund covers damages resulting from acts of _____. - ✔✔a licensee
acting as an agent in a transaction
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
multiple judgments against a single licensee is _____. - ✔✔50,000
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
damages for a single transaction (regardless of the number of claimants) is _____. -
✔✔$25,000
✔✔When payment from the real estate recovery fund is authorized, the license of the
person against whom the claim is made _____. - ✔✔may be terminated
✔✔A payment is made from the real estate recovery fund, and the licensee's license is
terminated.In order to reinstate the license, the licensee may be required to _____. -
✔✔repay the fund plus interest at a rate of 12%
✔✔If the location of a real estate business changes, the fee for the change is _____. -
✔✔$25 for each license affected by the change
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission - ✔✔by certified mail
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission, by certified mail, within _____. -
✔✔10 days
✔✔If a formal complaint is filed against a licensed salesperson, the Commission must
provide written notification of the complaint to _____. - ✔✔the salesperson and his/her
qualifying broker
✔✔If a license law violation occurs, the Commission has the authority to _____. - ✔✔1.
impose a fine up to $2,500.
, 2. revoke or suspend the licensee's license
3. reprimand the licensee
✔✔If a license law violation occurs, the Commission has the authority to require the
licensee to complete continuing education. True or false - ✔✔complete continuing
education
pay financial restitution
pay a fine up to $2500
✔✔The Commission has the authority to discipline _____. - ✔✔people who practice real
estate without a license and real estate licensees
✔✔When someone practices real estate without a license, the Commission may _____.
- ✔✔impose a fine
✔✔Disclosing latent structural defects to a potential buyer is a(n) acceptable business
practice. True or False. - ✔✔True
✔✔Which types of defects must a licensee disclose to a potential buyer or lessee? -
✔✔latent structural defects
✔✔A licensee who fails to disclose his/her status as a real estate licensee in an
advertisement is engaging in a(n) _____. - ✔✔violation of the license law
✔✔Acting as a dual agent WITHOUT the knowledge and written consent of all parties
involved is a(n) _____. - ✔✔violation of the license law
✔✔Acting as a dual agent WITH the knowledge and written consent of all parties
involved is a(n) _____. - ✔✔acceptable business practice
✔✔When a licensee accepts and holds funds on behalf of another, the funds must be
deposited in _____. - ✔✔a federally insured account located in Alabama
✔✔If a broker pays a fee for a real estate activity to an unlicensed individual, the broker
is engaging in a(n) _____. - ✔✔violation of the license law
✔✔If a broker pays a fee for a real estate activity to a multiple listing service, the broker
is engaging in a(n) _____. - ✔✔acceptable business practice
✔✔If a broker accepts a rebate from a party in a real estate transaction, the broker is
engaging in a(n) violation of the license law. True or False - ✔✔True
ANSWERS SET A+
✔✔To renew a license, a licensee must submit a renewal form and all other renewal
requirements to the Commission by _____ of the second year of the license period. -
✔✔August 31
✔✔If a licensee fails to submit the renewal requirements by September 30th of the final
year of the license period, his/her license _____. - ✔✔is placed on inactive status
✔✔A licensee fails to submit the renewal requirements by August 31 of the final year of
the license period.If the licensee wishes to renew during the first year of the new license
period, she must _____. - ✔✔meet renewal requirements and pay a penalty
✔✔A licensee fails to renew his license during the first year of the new license period,
and his license lapses.If the licensee wishes to return to his real estate practice, he
must _____. - ✔✔meet all of the requirements for an original license
✔✔To renew a license, a licensee must complete continuing education courses totaling
_____ hours. - ✔✔15
✔✔Which of the following individuals would be exempt from continuing education
requirements? - ✔✔a new licensee who has been licensed for 6 months
✔✔If a salesperson is on inactive status, he/she may engage in ALL real estate
activities? - ✔✔false
✔✔When a salesperson's license is placed on inactive status, the license is held by
_____. - ✔✔the Real Estate Commission
✔✔The recovery fund is funded from _____. - ✔✔initial license fees
,✔✔If a member of the public suffers as a result of a violation by a real estate licensee,
the recovery fund may be used to cover _____. - ✔✔actual and compensatory damages
✔✔Which of the following individuals is most likely to recover from the recovery fund? -
✔✔a principal in a real estate transaction
✔✔When is a licensee permitted to recover from the recovery fund? - ✔✔if he/she
suffers damages when acting as a principal
✔✔The recovery fund covers damages resulting from acts of _____. - ✔✔a licensee
acting as an agent in a transaction
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
multiple judgments against a single licensee is _____. - ✔✔50,000
✔✔When damages are paid from the real estate recovery fund, the limit of liability for
damages for a single transaction (regardless of the number of claimants) is _____. -
✔✔$25,000
✔✔When payment from the real estate recovery fund is authorized, the license of the
person against whom the claim is made _____. - ✔✔may be terminated
✔✔A payment is made from the real estate recovery fund, and the licensee's license is
terminated.In order to reinstate the license, the licensee may be required to _____. -
✔✔repay the fund plus interest at a rate of 12%
✔✔If the location of a real estate business changes, the fee for the change is _____. -
✔✔$25 for each license affected by the change
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission - ✔✔by certified mail
✔✔If a criminal or civil complaint involving a real estate transaction has been filed
against a licensee, he/she must notify the Commission, by certified mail, within _____. -
✔✔10 days
✔✔If a formal complaint is filed against a licensed salesperson, the Commission must
provide written notification of the complaint to _____. - ✔✔the salesperson and his/her
qualifying broker
✔✔If a license law violation occurs, the Commission has the authority to _____. - ✔✔1.
impose a fine up to $2,500.
, 2. revoke or suspend the licensee's license
3. reprimand the licensee
✔✔If a license law violation occurs, the Commission has the authority to require the
licensee to complete continuing education. True or false - ✔✔complete continuing
education
pay financial restitution
pay a fine up to $2500
✔✔The Commission has the authority to discipline _____. - ✔✔people who practice real
estate without a license and real estate licensees
✔✔When someone practices real estate without a license, the Commission may _____.
- ✔✔impose a fine
✔✔Disclosing latent structural defects to a potential buyer is a(n) acceptable business
practice. True or False. - ✔✔True
✔✔Which types of defects must a licensee disclose to a potential buyer or lessee? -
✔✔latent structural defects
✔✔A licensee who fails to disclose his/her status as a real estate licensee in an
advertisement is engaging in a(n) _____. - ✔✔violation of the license law
✔✔Acting as a dual agent WITHOUT the knowledge and written consent of all parties
involved is a(n) _____. - ✔✔violation of the license law
✔✔Acting as a dual agent WITH the knowledge and written consent of all parties
involved is a(n) _____. - ✔✔acceptable business practice
✔✔When a licensee accepts and holds funds on behalf of another, the funds must be
deposited in _____. - ✔✔a federally insured account located in Alabama
✔✔If a broker pays a fee for a real estate activity to an unlicensed individual, the broker
is engaging in a(n) _____. - ✔✔violation of the license law
✔✔If a broker pays a fee for a real estate activity to a multiple listing service, the broker
is engaging in a(n) _____. - ✔✔acceptable business practice
✔✔If a broker accepts a rebate from a party in a real estate transaction, the broker is
engaging in a(n) violation of the license law. True or False - ✔✔True
