1|Page
ALABAMA REAL ESTATE LICENSE EXAM 2025 |
COMPREHENSIVE Q&A FOR GUARANTEED PASS
After passing state exam, you have days to apply for a Temporary
License, either on an Active or Inactive basis. - correct-answer-90
Temporary Licenses are only valid for year(s), and cannot be
renewed. - correct-answer-1
For an Original License, you must pass a hour post-license course. -
correct- answer-30
If Temporary License is ACTIVE, the post-license course must be completed
within
months. - correct-answer-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-answer-1
,2|Page
For Broker's License, applicant must have ACTIVE Salesperson License
for __ out of
____ years immediately preceding the application. - correct-answer-2/3
The fee to transfer your Salesperson License to a new Qualifying Broker
is $ .
- correct-answer-$25
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-answer-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.
,3|Page
$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.
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-
answer-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.
Income Method Formula - correct-answer-Annual Net Income
Value | Cap Rate (ROI)
, 4|Page
Annual Net Income Formula - correct-answer-Potential Gross Annual
Income
- Vacancies: (Vacancy Rate) x (Potential Gross Income)
+ Additional Income
= Effective Gross Income
- Expenses
= ANNUAL NET OPERATING INCOME
Operating Expenses - correct-answer-Costs that usually fluctuate with
operating level of property (as opposed to fixed expenses).
Cost Approach (Summation Approach) - correct-answer-Used for
properties that do not have comps, and are not income-producing
(schools, libraries, hospitals, etc).
Cost Approach Formula - correct-answer-Estimated Cost of
Reproducing or Replacing Structure
- Depreciation (Structure Only)
ALABAMA REAL ESTATE LICENSE EXAM 2025 |
COMPREHENSIVE Q&A FOR GUARANTEED PASS
After passing state exam, you have days to apply for a Temporary
License, either on an Active or Inactive basis. - correct-answer-90
Temporary Licenses are only valid for year(s), and cannot be
renewed. - correct-answer-1
For an Original License, you must pass a hour post-license course. -
correct- answer-30
If Temporary License is ACTIVE, the post-license course must be completed
within
months. - correct-answer-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-answer-1
,2|Page
For Broker's License, applicant must have ACTIVE Salesperson License
for __ out of
____ years immediately preceding the application. - correct-answer-2/3
The fee to transfer your Salesperson License to a new Qualifying Broker
is $ .
- correct-answer-$25
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-answer-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.
,3|Page
$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.
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-
answer-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.
Income Method Formula - correct-answer-Annual Net Income
Value | Cap Rate (ROI)
, 4|Page
Annual Net Income Formula - correct-answer-Potential Gross Annual
Income
- Vacancies: (Vacancy Rate) x (Potential Gross Income)
+ Additional Income
= Effective Gross Income
- Expenses
= ANNUAL NET OPERATING INCOME
Operating Expenses - correct-answer-Costs that usually fluctuate with
operating level of property (as opposed to fixed expenses).
Cost Approach (Summation Approach) - correct-answer-Used for
properties that do not have comps, and are not income-producing
(schools, libraries, hospitals, etc).
Cost Approach Formula - correct-answer-Estimated Cost of
Reproducing or Replacing Structure
- Depreciation (Structure Only)
