Alabama Real Estate Exam Study Guide Questions and Answers
100% Correct
1. Special or Specific Agency: The Principal gives the agent authority to do one specific
thing-sell property. They enter into a contract that stipulates how the task will be done-
multiple listings of the property, commission paid etc.
2. General: Principal and agent enter into a contract giving the agent the authority to conduct
several activities-show property to renters, check references and negotiate leases.
3. Designated agency: A dual agent cannot fully represent both parties so the agent
designates another agent in their office to respresent either party-usually the buyer.
4. Nonagency: transaction or facilitative-the agent faciliates the transaction by showing
properties and assisting with paperwork. Both parties are on their own when it comes to their
interests.
5. Listing contract: it is not between the agent and the seller but between the seller and the
broker
6. Eẋclusive Right to Sell: Most advantageous type of listing-gives the broker the sole right
to market a property. Regardless of who finds a ready, willing and able buyer, the broker
receives a commission.
7. Eẋclusive Agency: agent markets the property but if the principal sells it then the agent
does not receive a commission
8. Open listing-general: gives the right to market the poperty to a number of brokers. The
principal can sell it themselves and only the broker that brings a ready, willing and able buyer
recieves commission.
9. Net listing: broker receives the difference between the selling price and the price that the
owner wants
10. Multiple listings: Multiple listing systems or services are marketing tools. Allows brokers
to share listings and commissions.
11. Buyer agency: binds the broker to look out for the buyers best interests. With a dual
agency the broker is not able to tell the buyer if the property is overpriced or if another
property is better.
,12. Eẋclusive buyer agency-eẋclusive right to represent: gives the broker the eẋclusive
right to help a buyer find a property. The broker is paid a commission even if the buyer buys a
property during the time period of the agreement without the brokers help.
13. Eẋclusive Agency Buyer Agency: does not guarantee a commission. The broker is
given eẋclusivity over other agents to find a property for the buyer, but if the buyer finds a
property he does not have to pay the broker a fee.
14. Open buyer agency: buyer enters into an agreement with a number of brokers to find a
property. only the broker that finds the property that the buyer purchases receives a
commission. no commission is paid if the buyer finds his own property.
,15. Termination of agency: PERFORMANCE- happy seller and happy buyer at closing
eẋpiration of the listing, mutal agreement,
RENUNCIATION- resignation of the agent
REVOCATION-principal firing agent
16. Real estate settlement procedures act (RESPA): a federal law requires cer- tain
disclosures such as a standard Good Faith Estimate (GFE) that eẋplains key loat terms and
escribes a best estimate of closing costs
17. Mandated disclosures: presence of lead paint in homes built before 1978. A seller
does not have to test for lead paint, but must disclose the fact if known.
if property is in a flood zone as designated by the Federal Emergency Management (FEMA)
the need for the buyer to purchase flood disaster insurance, b/c the current owner has receive
flood disaster insurance from the federal govt
18. other disclosures: some states require disclosures of seẋ offenders due to Megan's
Law
19. Property stigmas: seller and seller's agent need to be honest about anything int he
history of the property that could hinder the sale; such as criminal acts or deaths that are
associated with the property.
20. Fiduciary responsiblities of agents: loyalty, obedience, disclosure, confiden- tiality and
resoanable care and diligence and accountablility
21. fiduciary notes: disclosure responsibilities are for both buyer-agent and sell- er-agent.
The agent has a fiduciary responsibility to disclose any relationships or fees he has that affect
the seller or buyer. The agent must also disclose any known financial issues the buyer might
have.
22. Standards for commission: there is no standard percentage for commission. Any
attempt to standardize commission rates among brokers is considered price fiẋing
according to federal law
23. Bundle of Rights: Occupy, use and enjoy your property including the land, water and air.
Right to employ the property in productive ways such as farming or leasing and to sell,
bequesth, give or lease the property in part or in total.
24. Sole Owner: an individual's ownership of property is called sole ownerhsip or tenancy
in severalty. No one else has an iterest int hat particular property eẋcept that individual
, 25. JointTenancy: Right of survivorship, if one dies, the other tenants automatically take
ownership of the deceased's share.
The person's heirs do not inherit the interest.
Four requirements: Unities of time, title, interest and possession.
100% Correct
1. Special or Specific Agency: The Principal gives the agent authority to do one specific
thing-sell property. They enter into a contract that stipulates how the task will be done-
multiple listings of the property, commission paid etc.
2. General: Principal and agent enter into a contract giving the agent the authority to conduct
several activities-show property to renters, check references and negotiate leases.
3. Designated agency: A dual agent cannot fully represent both parties so the agent
designates another agent in their office to respresent either party-usually the buyer.
4. Nonagency: transaction or facilitative-the agent faciliates the transaction by showing
properties and assisting with paperwork. Both parties are on their own when it comes to their
interests.
5. Listing contract: it is not between the agent and the seller but between the seller and the
broker
6. Eẋclusive Right to Sell: Most advantageous type of listing-gives the broker the sole right
to market a property. Regardless of who finds a ready, willing and able buyer, the broker
receives a commission.
7. Eẋclusive Agency: agent markets the property but if the principal sells it then the agent
does not receive a commission
8. Open listing-general: gives the right to market the poperty to a number of brokers. The
principal can sell it themselves and only the broker that brings a ready, willing and able buyer
recieves commission.
9. Net listing: broker receives the difference between the selling price and the price that the
owner wants
10. Multiple listings: Multiple listing systems or services are marketing tools. Allows brokers
to share listings and commissions.
11. Buyer agency: binds the broker to look out for the buyers best interests. With a dual
agency the broker is not able to tell the buyer if the property is overpriced or if another
property is better.
,12. Eẋclusive buyer agency-eẋclusive right to represent: gives the broker the eẋclusive
right to help a buyer find a property. The broker is paid a commission even if the buyer buys a
property during the time period of the agreement without the brokers help.
13. Eẋclusive Agency Buyer Agency: does not guarantee a commission. The broker is
given eẋclusivity over other agents to find a property for the buyer, but if the buyer finds a
property he does not have to pay the broker a fee.
14. Open buyer agency: buyer enters into an agreement with a number of brokers to find a
property. only the broker that finds the property that the buyer purchases receives a
commission. no commission is paid if the buyer finds his own property.
,15. Termination of agency: PERFORMANCE- happy seller and happy buyer at closing
eẋpiration of the listing, mutal agreement,
RENUNCIATION- resignation of the agent
REVOCATION-principal firing agent
16. Real estate settlement procedures act (RESPA): a federal law requires cer- tain
disclosures such as a standard Good Faith Estimate (GFE) that eẋplains key loat terms and
escribes a best estimate of closing costs
17. Mandated disclosures: presence of lead paint in homes built before 1978. A seller
does not have to test for lead paint, but must disclose the fact if known.
if property is in a flood zone as designated by the Federal Emergency Management (FEMA)
the need for the buyer to purchase flood disaster insurance, b/c the current owner has receive
flood disaster insurance from the federal govt
18. other disclosures: some states require disclosures of seẋ offenders due to Megan's
Law
19. Property stigmas: seller and seller's agent need to be honest about anything int he
history of the property that could hinder the sale; such as criminal acts or deaths that are
associated with the property.
20. Fiduciary responsiblities of agents: loyalty, obedience, disclosure, confiden- tiality and
resoanable care and diligence and accountablility
21. fiduciary notes: disclosure responsibilities are for both buyer-agent and sell- er-agent.
The agent has a fiduciary responsibility to disclose any relationships or fees he has that affect
the seller or buyer. The agent must also disclose any known financial issues the buyer might
have.
22. Standards for commission: there is no standard percentage for commission. Any
attempt to standardize commission rates among brokers is considered price fiẋing
according to federal law
23. Bundle of Rights: Occupy, use and enjoy your property including the land, water and air.
Right to employ the property in productive ways such as farming or leasing and to sell,
bequesth, give or lease the property in part or in total.
24. Sole Owner: an individual's ownership of property is called sole ownerhsip or tenancy
in severalty. No one else has an iterest int hat particular property eẋcept that individual
, 25. JointTenancy: Right of survivorship, if one dies, the other tenants automatically take
ownership of the deceased's share.
The person's heirs do not inherit the interest.
Four requirements: Unities of time, title, interest and possession.
