Alabama Licensing Overview: Unit 23
Exam Questions With Actual Answers
No real estate license is required for managing rental properties consisting of -
CORRECT ANSWER-apartment complexes with more than four units each.
Which of the following describes recognition of a real estate license from another state
with reduced requirements for license in Alabama? - CORRECT ANSWER-Reciprocity
A licensed salesperson wishes to change brokers and go to work for a different real
estate company. The current broker refuses to send the license back to the AREC so it
can be assigned to the new broker. What can the salesperson do to remedy this
situation? - CORRECT ANSWER-Nothing; the new broker can simply file a request for
the transfer and pay a $25 fee.
How many years does a member serve during a term on the Alabama Real Estate
Commission? - CORRECT ANSWER-Five. Members are appointed by the governor for
five years and may serve no more than two full consecutive terms.
Which of the following is TRUE regarding errors and omissions (E&O) insurance
coverage? - CORRECT ANSWER-Most E&O policies contain an exclusion for coverage
of company-owned real estate.
If a temporary license is issued on an ACTIVE status with a qualifying broker, the
licensee must complete a post licensing training class of _____ or the license will
automatically convert to inactive status. - CORRECT ANSWER-30 hours within six
months
, If, after a 12-month period, the temporary licensee has NOT completed the
Commission's required postlicensing course, the temporary license will - CORRECT
ANSWER-lapse.
A man has been a licensed broker in Pennsylvania for more than 10 years. He is
planning to move to Montgomery next year and apply for an Alabama broker's license.
Almost 10 years ago, he was brought before the Pennsylvania Real Estate Commission
and found guilty of commingling funds in his broker's escrow account when he allowed
his property management fees to remain in the account instead of disbursing them
every month. The Pennsylvania board fined him $500 and suspended his broker's
license for three months. What will the man have to do in order to obtain a license in
Alabama? - CORRECT ANSWER-Provide a detailed explanation of the circumstances
that led to the conviction, along with his application. This is in addition to the usual
certificate of good standing that must be provided for any reciprocal license application.
A licensed salesperson who changes brokers may begin real estate activities for the
new broker as soon as the - CORRECT ANSWER-new license is issued by the AREC.
The rules of the Alabama Real Estate Commission can be changed by a - CORRECT
ANSWER-decision by the Alabama real estate commissioners, notification to the public,
and a public hearing before adoption.
What is the ratio of licensed and unlicensed members on the Alabama Real Estate
Commission? - CORRECT ANSWER-Eight licensed and one unlicensed. The Alabama
Real Estate Commission is a nine-member body composed of eight licensed members
and one unlicensed member. The unlicensed member is called the consumer
commissioner and is supposed to present a consumer point of view on issues.
The branch manager for a large mortgage company also holds an active Alabama real
estate broker's license. Can that person act as the qualifying broker for other real estate
licensees? - CORRECT ANSWER-No, because the person's principal business is not
as a real estate broker.
Exam Questions With Actual Answers
No real estate license is required for managing rental properties consisting of -
CORRECT ANSWER-apartment complexes with more than four units each.
Which of the following describes recognition of a real estate license from another state
with reduced requirements for license in Alabama? - CORRECT ANSWER-Reciprocity
A licensed salesperson wishes to change brokers and go to work for a different real
estate company. The current broker refuses to send the license back to the AREC so it
can be assigned to the new broker. What can the salesperson do to remedy this
situation? - CORRECT ANSWER-Nothing; the new broker can simply file a request for
the transfer and pay a $25 fee.
How many years does a member serve during a term on the Alabama Real Estate
Commission? - CORRECT ANSWER-Five. Members are appointed by the governor for
five years and may serve no more than two full consecutive terms.
Which of the following is TRUE regarding errors and omissions (E&O) insurance
coverage? - CORRECT ANSWER-Most E&O policies contain an exclusion for coverage
of company-owned real estate.
If a temporary license is issued on an ACTIVE status with a qualifying broker, the
licensee must complete a post licensing training class of _____ or the license will
automatically convert to inactive status. - CORRECT ANSWER-30 hours within six
months
, If, after a 12-month period, the temporary licensee has NOT completed the
Commission's required postlicensing course, the temporary license will - CORRECT
ANSWER-lapse.
A man has been a licensed broker in Pennsylvania for more than 10 years. He is
planning to move to Montgomery next year and apply for an Alabama broker's license.
Almost 10 years ago, he was brought before the Pennsylvania Real Estate Commission
and found guilty of commingling funds in his broker's escrow account when he allowed
his property management fees to remain in the account instead of disbursing them
every month. The Pennsylvania board fined him $500 and suspended his broker's
license for three months. What will the man have to do in order to obtain a license in
Alabama? - CORRECT ANSWER-Provide a detailed explanation of the circumstances
that led to the conviction, along with his application. This is in addition to the usual
certificate of good standing that must be provided for any reciprocal license application.
A licensed salesperson who changes brokers may begin real estate activities for the
new broker as soon as the - CORRECT ANSWER-new license is issued by the AREC.
The rules of the Alabama Real Estate Commission can be changed by a - CORRECT
ANSWER-decision by the Alabama real estate commissioners, notification to the public,
and a public hearing before adoption.
What is the ratio of licensed and unlicensed members on the Alabama Real Estate
Commission? - CORRECT ANSWER-Eight licensed and one unlicensed. The Alabama
Real Estate Commission is a nine-member body composed of eight licensed members
and one unlicensed member. The unlicensed member is called the consumer
commissioner and is supposed to present a consumer point of view on issues.
The branch manager for a large mortgage company also holds an active Alabama real
estate broker's license. Can that person act as the qualifying broker for other real estate
licensees? - CORRECT ANSWER-No, because the person's principal business is not
as a real estate broker.
