Alabama Real Estate License Exam
Questions With Complete Solutions
After passing state exam, you have ___ days to apply for a
Temporary License, either on an Active or Inactive basis. -
Correct Answers ✅90
Temporary Licenses are only valid for ___ year(s), and cannot
be renewed. - Correct Answers ✅1
For an Original License, you must pass a ___ hour post-license
course. - Correct Answers ✅30
If Temporary License is ACTIVE, the post-license course must
be completed within ___ months. - Correct Answers ✅6.
If the post-license course is not completed within ___ year(s),
the Temporary License lapses. This period begins on the
FIRST DAY of the month AFTER passing the state exam. -
Correct Answers ✅1
For Broker's License, applicant must have ACTIVE
Salesperson License for ___ out of ___ years immediately
preceding the application. - Correct Answers ✅2/3
The fee to transfer your Salesperson License to a new
Qualifying Broker is $___. - Correct Answers ✅$25
,Alabama Real Estate License Exam
Questions With Complete Solutions
An owner's mortgage includes a clause requiring a
prepayment penalty. Three percent of any outstanding loan
principal would be charged by the lender if the owner paid off
the principal before the scheduled time. Payments were
$296.88, due on the first of each month, and included both
principal and interest in arrears at 8% per annum. After the
owner's July 1 payment, her loan balance was $8,946.23. On
August 1, after handing her lender the check for her August 1
payment, the owner paid off the entire remaining loan
balance. What is the approximate prepayment penalty? -
Correct Answers ✅The monthly house payment, $296.88,
includes both interest and principal. The prepayment penalty
is charged only on the principal, not on interest. Therefore,
one must determine how much the new principal loan
balance will
be after the August 1st house payment is made. The
calculations are as follows:
The loan balance after the July 1 payment is $8,946.23 x 0.08
interest rate = $715.70 a year ÷ 12 months = $59.64
interest for July.
$296.88 monthly house payment $59.64 interest = 237.24
principal payment on August 1 payment.
$8946.23 loan balance $237.24 principal paid in August
leaves new principal balance of $8708.99 after August 1st
payment.
,Alabama Real Estate License Exam
Questions With Complete Solutions
This is the amount on which the prepayment penalty will be
based:
$8708.99 x 0.03 penalty = $261.27
A managing broker requires his licensees to mention a
particular lender to buyers. The broker has a financial interest
in this particular mortgage lender. Which of the following
should the licensee recommend to buyers? - Correct
Answers ✅Consider this lender, disclosing the broker's
interest, and other lenders.
Licensees should generally avoid recommending only one
lender, and if a financial interest is involved, it should be
disclosed. Since rates can change, a licensee most likely
would not know which lender has the best rates. Licensees
may provide a list of lenders without having to display the
lenders in any particular order.
When using the sales comparison approach, a licensee
determines that a comparable property's tile floor in the
entry hall is worth $2,000. The subject property does not
have tile floors at all. Which of the following adjustments
should be made? - Correct Answers ✅The comparable
should be adjusted downward.
, Alabama Real Estate License Exam
Questions With Complete Solutions
In the sales comparison (market data) approach to appraisal,
it is always the comparables that are adjusted, never the
subject property. If the comparable is better than the subject
property, the adjustment to it is downward. If the comparable
is not as good as the subject property, the adjustment to it
would be upward.
On February 1, a licensee with ABC Realty takes a 3month
exclusive right-to-sell listing on a house. On March 1, the
licensee moves out of state and inactivates his license. What
happens to this listing? - Correct Answers ✅It remains a
valid exclusive right-to-sell listing contract with ABC Realty.
The listing belongs to the brokerage firm; it does not belong
to an individual licensee. The licensee takes the listing on
behalf of the firm, and, if the licensee leaves or becomes
unlicensed during the listing, the listing would remain in
whatever form it was originally taken. The listing would still
be in effect with the firm until it expires or is terminated.
A person bought property from a seller and received a
general warranty deed. Two years later, the seller's brother
came forth and claimed he had an ownership interest in the
property. The brother stated he knew the court would uphold
his interest. In a general warranty deed, the buyer is
protected from this situation by the covenant-- - Correct
Answers ✅--of seisin.
Questions With Complete Solutions
After passing state exam, you have ___ days to apply for a
Temporary License, either on an Active or Inactive basis. -
Correct Answers ✅90
Temporary Licenses are only valid for ___ year(s), and cannot
be renewed. - Correct Answers ✅1
For an Original License, you must pass a ___ hour post-license
course. - Correct Answers ✅30
If Temporary License is ACTIVE, the post-license course must
be completed within ___ months. - Correct Answers ✅6.
If the post-license course is not completed within ___ year(s),
the Temporary License lapses. This period begins on the
FIRST DAY of the month AFTER passing the state exam. -
Correct Answers ✅1
For Broker's License, applicant must have ACTIVE
Salesperson License for ___ out of ___ years immediately
preceding the application. - Correct Answers ✅2/3
The fee to transfer your Salesperson License to a new
Qualifying Broker is $___. - Correct Answers ✅$25
,Alabama Real Estate License Exam
Questions With Complete Solutions
An owner's mortgage includes a clause requiring a
prepayment penalty. Three percent of any outstanding loan
principal would be charged by the lender if the owner paid off
the principal before the scheduled time. Payments were
$296.88, due on the first of each month, and included both
principal and interest in arrears at 8% per annum. After the
owner's July 1 payment, her loan balance was $8,946.23. On
August 1, after handing her lender the check for her August 1
payment, the owner paid off the entire remaining loan
balance. What is the approximate prepayment penalty? -
Correct Answers ✅The monthly house payment, $296.88,
includes both interest and principal. The prepayment penalty
is charged only on the principal, not on interest. Therefore,
one must determine how much the new principal loan
balance will
be after the August 1st house payment is made. The
calculations are as follows:
The loan balance after the July 1 payment is $8,946.23 x 0.08
interest rate = $715.70 a year ÷ 12 months = $59.64
interest for July.
$296.88 monthly house payment $59.64 interest = 237.24
principal payment on August 1 payment.
$8946.23 loan balance $237.24 principal paid in August
leaves new principal balance of $8708.99 after August 1st
payment.
,Alabama Real Estate License Exam
Questions With Complete Solutions
This is the amount on which the prepayment penalty will be
based:
$8708.99 x 0.03 penalty = $261.27
A managing broker requires his licensees to mention a
particular lender to buyers. The broker has a financial interest
in this particular mortgage lender. Which of the following
should the licensee recommend to buyers? - Correct
Answers ✅Consider this lender, disclosing the broker's
interest, and other lenders.
Licensees should generally avoid recommending only one
lender, and if a financial interest is involved, it should be
disclosed. Since rates can change, a licensee most likely
would not know which lender has the best rates. Licensees
may provide a list of lenders without having to display the
lenders in any particular order.
When using the sales comparison approach, a licensee
determines that a comparable property's tile floor in the
entry hall is worth $2,000. The subject property does not
have tile floors at all. Which of the following adjustments
should be made? - Correct Answers ✅The comparable
should be adjusted downward.
, Alabama Real Estate License Exam
Questions With Complete Solutions
In the sales comparison (market data) approach to appraisal,
it is always the comparables that are adjusted, never the
subject property. If the comparable is better than the subject
property, the adjustment to it is downward. If the comparable
is not as good as the subject property, the adjustment to it
would be upward.
On February 1, a licensee with ABC Realty takes a 3month
exclusive right-to-sell listing on a house. On March 1, the
licensee moves out of state and inactivates his license. What
happens to this listing? - Correct Answers ✅It remains a
valid exclusive right-to-sell listing contract with ABC Realty.
The listing belongs to the brokerage firm; it does not belong
to an individual licensee. The licensee takes the listing on
behalf of the firm, and, if the licensee leaves or becomes
unlicensed during the listing, the listing would remain in
whatever form it was originally taken. The listing would still
be in effect with the firm until it expires or is terminated.
A person bought property from a seller and received a
general warranty deed. Two years later, the seller's brother
came forth and claimed he had an ownership interest in the
property. The brother stated he knew the court would uphold
his interest. In a general warranty deed, the buyer is
protected from this situation by the covenant-- - Correct
Answers ✅--of seisin.
