CE Shop (Alabama) Final Exam Review
Questions with Complete Solution
Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer.
What will happen to the check now? - CORRECT ANSWER-An escrow agent will hold
the funds in a trust account until the agreement's terms are satisfied.
Cheryl, the aggrieved claimant on a complaint against a licensee, has just won her
claim. She demonstrated that the licensee was responsible for her losing $60,000. She
also paid for a lawyer, which was another $5,000. With other fees and incidentals, her
total damages are $67,000. What is the amount she'll receive? - CORRECT ANSWER-
$25,000
Jerrold reviews the floor plan of the Knoxville house he's going to sell. It's 3,800 square
feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its
asking price. What has Jerrold done? - CORRECT ANSWER-Intentional
misrepresentation
Which of the following best describes an inactive license? - CORRECT ANSWER-This
license status means that you've paid your license fee but haven't completed your CE
requirements.
If you, as an Alabama licensee, make a statement in an ad that you should have known
was false, what are you guilty of? - CORRECT ANSWER-Misrepresentation
Which of the following is a minimum service that an Alabama licensee must provide to
her clients? - CORRECT ANSWER-Disclosing any material facts the licensee knows
about that the client couldn't reasonably ascertain
Alabama broker Jim is acting as a limited consensual dual agent for seller Christine and
buyer Blake. Which of the following is required for Jim to act in this capacity? -
, CORRECT ANSWER-He must get the written, informed, advance consent before
entering into the relationship.
What action may licensees take if they're unhappy with the commission's final decision
on their hearing? - CORRECT ANSWER-They may request a rehearing.
The funds placed in trust accounts are insured by the ______. - CORRECT ANSWER-
FDIC
When it comes to earnest money, which one of the following statements is true? -
CORRECT ANSWER-Earnest money must be placed in a trust account.
D'Wayne is acting as the buyer's agent for Alabama resident Rocky in a real estate
transaction. In this transaction, what is D'Wayne's role? - CORRECT ANSWER-A single
agent
Julie is working with buyer clients and has prepared an estimated closing statement.
Which of the following statements is true? - CORRECT ANSWER-She must provide it
when an offer is signed.
Should the broker end up in litigation, any trust funds not safely tucked away in a trust
account could be ______. - CORRECT ANSWER-Frozen
Which one of the following is a true statement regarding the termination of qualifying
broker status in Alabama? - CORRECT ANSWER-Qualifying brokers have to notify their
brokerage and the commission in writing if they wish to terminate their status.
For how long must an Alabama licensee retain transaction file records after the date of
the transaction? - CORRECT ANSWER-Three years
Questions with Complete Solution
Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer.
What will happen to the check now? - CORRECT ANSWER-An escrow agent will hold
the funds in a trust account until the agreement's terms are satisfied.
Cheryl, the aggrieved claimant on a complaint against a licensee, has just won her
claim. She demonstrated that the licensee was responsible for her losing $60,000. She
also paid for a lawyer, which was another $5,000. With other fees and incidentals, her
total damages are $67,000. What is the amount she'll receive? - CORRECT ANSWER-
$25,000
Jerrold reviews the floor plan of the Knoxville house he's going to sell. It's 3,800 square
feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its
asking price. What has Jerrold done? - CORRECT ANSWER-Intentional
misrepresentation
Which of the following best describes an inactive license? - CORRECT ANSWER-This
license status means that you've paid your license fee but haven't completed your CE
requirements.
If you, as an Alabama licensee, make a statement in an ad that you should have known
was false, what are you guilty of? - CORRECT ANSWER-Misrepresentation
Which of the following is a minimum service that an Alabama licensee must provide to
her clients? - CORRECT ANSWER-Disclosing any material facts the licensee knows
about that the client couldn't reasonably ascertain
Alabama broker Jim is acting as a limited consensual dual agent for seller Christine and
buyer Blake. Which of the following is required for Jim to act in this capacity? -
, CORRECT ANSWER-He must get the written, informed, advance consent before
entering into the relationship.
What action may licensees take if they're unhappy with the commission's final decision
on their hearing? - CORRECT ANSWER-They may request a rehearing.
The funds placed in trust accounts are insured by the ______. - CORRECT ANSWER-
FDIC
When it comes to earnest money, which one of the following statements is true? -
CORRECT ANSWER-Earnest money must be placed in a trust account.
D'Wayne is acting as the buyer's agent for Alabama resident Rocky in a real estate
transaction. In this transaction, what is D'Wayne's role? - CORRECT ANSWER-A single
agent
Julie is working with buyer clients and has prepared an estimated closing statement.
Which of the following statements is true? - CORRECT ANSWER-She must provide it
when an offer is signed.
Should the broker end up in litigation, any trust funds not safely tucked away in a trust
account could be ______. - CORRECT ANSWER-Frozen
Which one of the following is a true statement regarding the termination of qualifying
broker status in Alabama? - CORRECT ANSWER-Qualifying brokers have to notify their
brokerage and the commission in writing if they wish to terminate their status.
For how long must an Alabama licensee retain transaction file records after the date of
the transaction? - CORRECT ANSWER-Three years
