POST LICENSE EXAM 25 COMPLETE
PREPARATION GUIDE WITH ETHICS,
COMPLIANCE, AND INDUSTRY PRACTICE
REVIEW
◉ When are licensees required to present the Real Estate Brokerage
Services Disclosure Form to consumers (buyers and sellers)?
Answer: As soon as reasonably possible (the law doesn't require
them to sign, but licensees should encourage them to)
◉ What relationships must be explained to consumers in the Real
Estate Brokerage Services Disclosure Form?
Answer: - Transaction brokerage
- Single agency
- Limited consensual dual agency
◉ List three duties of a licensee to all the parties to a real estate
transaction when serving as a transaction broker.
Answer: - Provide brokerage services to all parties to the transaction
honestly and in good faith.
- Exercise reasonable skill and care in providing brokerage services
to all parties.
,- Present all written offers in a timely and truthful manner when
assisting a party in the negotiation of a real estate transaction.
◉ What duties does a licensee owe to a buyer client?
Answer: - Loyally represent the best interests of the client by placing
the interests of the client ahead of the interests of any other party.
- Disclose to the client all information known by the licensee that is
material to the transaction and not discoverable by the client
through reasonable investigation and observation.
- Fulfill any obligation required by the agency agreement and any
lawful instructions of the client that are within the scope of the
agency agreement.
◉ What is meant by a limited consensual dual agency?
Answer: An agency relationship where the real estate brokerage
company represents both the buyer & the seller in a transaction
◉ What is the advantage of limited consensual dual agency?
Answer: Broader marketing opportunities than single agency
arrangements.
With this type of transaction, salespeople can show houses of
owners that they represent as agents to their buyer clients.
◉ What is typically reported as the biggest complaint in real estate?
,Answer: Lack of communication
◉ What kind of body language should licensees exhibit when
communicating with buyers?
Answer: - Confident handshake but not overly firm
- Eye contact when talking or listening
- Refrain from crossing legs/arms, look open
- Lean towards them to show interest
◉ Because Alabama is a caveat emptor state, what is imperative for
buyers to know and understand before making a home purchase?
Answer: It's imperative that purchasers ask questions, explore, learn
about, and inspect the intended investment as much as possible
before completing the transaction. The ultimate task of discovery
falls completely on the buyers.
◉ What is the difference between a general home inspection and a
HVAC inspection?
Answer: A general home inspection is a non-invasive visual
inspection of accessible areas of the home that includes a general
inspection of the heating and cooling system, but may not reveal
every defect that exists.
An HVAC inspection is done by a residential HVAC expert and is
much more thorough.
, ◉ What does a well inspection include?
Answer: - A flow test
- An examination of the equipment
- A test for bacteria, nitrates, minerals, water hardness, & other
concerns
◉ List the other home buying procedures a licensee should explain
to a buyer.
Answer: - Seller property disclosures
- Home warranties
- Surveys
- Title insurance
- Walk-through
- Closing process
◉ What is the difference between pre-qualification and pre-
approval?
Answer: Pre-qualification is an informal process that a licensee or a
lender can do to determine how much of a mortgage a buyer can
afford. If done by a lender, the lender is not committing to making
the loan.
Pre-approval is a formal process done by a lender that goes through
most of the steps of a loan application process, after which the
PREPARATION GUIDE WITH ETHICS,
COMPLIANCE, AND INDUSTRY PRACTICE
REVIEW
◉ When are licensees required to present the Real Estate Brokerage
Services Disclosure Form to consumers (buyers and sellers)?
Answer: As soon as reasonably possible (the law doesn't require
them to sign, but licensees should encourage them to)
◉ What relationships must be explained to consumers in the Real
Estate Brokerage Services Disclosure Form?
Answer: - Transaction brokerage
- Single agency
- Limited consensual dual agency
◉ List three duties of a licensee to all the parties to a real estate
transaction when serving as a transaction broker.
Answer: - Provide brokerage services to all parties to the transaction
honestly and in good faith.
- Exercise reasonable skill and care in providing brokerage services
to all parties.
,- Present all written offers in a timely and truthful manner when
assisting a party in the negotiation of a real estate transaction.
◉ What duties does a licensee owe to a buyer client?
Answer: - Loyally represent the best interests of the client by placing
the interests of the client ahead of the interests of any other party.
- Disclose to the client all information known by the licensee that is
material to the transaction and not discoverable by the client
through reasonable investigation and observation.
- Fulfill any obligation required by the agency agreement and any
lawful instructions of the client that are within the scope of the
agency agreement.
◉ What is meant by a limited consensual dual agency?
Answer: An agency relationship where the real estate brokerage
company represents both the buyer & the seller in a transaction
◉ What is the advantage of limited consensual dual agency?
Answer: Broader marketing opportunities than single agency
arrangements.
With this type of transaction, salespeople can show houses of
owners that they represent as agents to their buyer clients.
◉ What is typically reported as the biggest complaint in real estate?
,Answer: Lack of communication
◉ What kind of body language should licensees exhibit when
communicating with buyers?
Answer: - Confident handshake but not overly firm
- Eye contact when talking or listening
- Refrain from crossing legs/arms, look open
- Lean towards them to show interest
◉ Because Alabama is a caveat emptor state, what is imperative for
buyers to know and understand before making a home purchase?
Answer: It's imperative that purchasers ask questions, explore, learn
about, and inspect the intended investment as much as possible
before completing the transaction. The ultimate task of discovery
falls completely on the buyers.
◉ What is the difference between a general home inspection and a
HVAC inspection?
Answer: A general home inspection is a non-invasive visual
inspection of accessible areas of the home that includes a general
inspection of the heating and cooling system, but may not reveal
every defect that exists.
An HVAC inspection is done by a residential HVAC expert and is
much more thorough.
, ◉ What does a well inspection include?
Answer: - A flow test
- An examination of the equipment
- A test for bacteria, nitrates, minerals, water hardness, & other
concerns
◉ List the other home buying procedures a licensee should explain
to a buyer.
Answer: - Seller property disclosures
- Home warranties
- Surveys
- Title insurance
- Walk-through
- Closing process
◉ What is the difference between pre-qualification and pre-
approval?
Answer: Pre-qualification is an informal process that a licensee or a
lender can do to determine how much of a mortgage a buyer can
afford. If done by a lender, the lender is not committing to making
the loan.
Pre-approval is a formal process done by a lender that goes through
most of the steps of a loan application process, after which the
