ALABAMA REAL ESTATE SALESPERSON EXAM
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. A real estate license in Alabama is issued by which body?
A. Alabama Housing Authority
B. Alabama Real Estate Commission
C. County Clerk Office
D. Federal Housing Administration
Answer: B
Rationale: The Alabama Real Estate Commission (AREC) regulates and issues real estate licenses
in the state.
2. A broker is best defined as a person who:
A. Only sells property
B. Acts on behalf of others for compensation in real estate transactions
C. Owns rental property
D. Appraises property only
Answer: B
Rationale: A broker facilitates real estate transactions for others for compensation.
3. A salesperson must be supervised by:
A. Another salesperson
B. A lender
C. A licensed broker
D. A closing attorney
Answer: C
Rationale: Salespersons must operate under a licensed broker.
4. The purpose of the Alabama Real Estate Commission is to:
A. Sell property
B. Protect consumers and regulate licensees
,C. Set property taxes
D. Approve mortgages
Answer: B
Rationale: AREC ensures fair and legal real estate practices.
5. Which of the following is REAL property?
A. Furniture
B. Land
C. Vehicles
D. Cash
Answer: B
Rationale: Real property includes land and anything permanently attached to it.
6. Personal property is also known as:
A. Real estate
B. Fixtures
C. Chattels
D. Estate in land
Answer: C
Rationale: Personal property is movable and called chattels.
7. Which contract is required to be in writing under the Statute of Frauds?
A. Oral rental agreement
B. Listing agreement
C. Handshake agreement
D. Verbal lease under one year
Answer: B
Rationale: Listing agreements must be in writing to be enforceable.
8. A fiduciary duty includes:
A. Loyalty and obedience
B. Advertising property
, C. Setting prices
D. Inspecting homes
Answer: A
Rationale: Fiduciary duties include loyalty, obedience, and care.
9. Which is NOT a fiduciary duty?
A. Confidentiality
B. Accounting
C. Marketing
D. Disclosure
Answer: C
Rationale: Marketing is not a fiduciary duty.
10. The Fair Housing Act prohibits discrimination based on:
A. Income
B. Race
C. Education
D. Age only
Answer: B
Rationale: Race is a protected class under Fair Housing laws.
11. Steering refers to:
A. Setting prices
B. Directing clients to certain neighborhoods based on protected class
C. Inspecting homes
D. Writing contracts
Answer: B
Rationale: Steering is illegal discrimination.
12. Blockbusting is:
A. Legal advertising
B. Encouraging homeowners to sell due to demographic changes
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. A real estate license in Alabama is issued by which body?
A. Alabama Housing Authority
B. Alabama Real Estate Commission
C. County Clerk Office
D. Federal Housing Administration
Answer: B
Rationale: The Alabama Real Estate Commission (AREC) regulates and issues real estate licenses
in the state.
2. A broker is best defined as a person who:
A. Only sells property
B. Acts on behalf of others for compensation in real estate transactions
C. Owns rental property
D. Appraises property only
Answer: B
Rationale: A broker facilitates real estate transactions for others for compensation.
3. A salesperson must be supervised by:
A. Another salesperson
B. A lender
C. A licensed broker
D. A closing attorney
Answer: C
Rationale: Salespersons must operate under a licensed broker.
4. The purpose of the Alabama Real Estate Commission is to:
A. Sell property
B. Protect consumers and regulate licensees
,C. Set property taxes
D. Approve mortgages
Answer: B
Rationale: AREC ensures fair and legal real estate practices.
5. Which of the following is REAL property?
A. Furniture
B. Land
C. Vehicles
D. Cash
Answer: B
Rationale: Real property includes land and anything permanently attached to it.
6. Personal property is also known as:
A. Real estate
B. Fixtures
C. Chattels
D. Estate in land
Answer: C
Rationale: Personal property is movable and called chattels.
7. Which contract is required to be in writing under the Statute of Frauds?
A. Oral rental agreement
B. Listing agreement
C. Handshake agreement
D. Verbal lease under one year
Answer: B
Rationale: Listing agreements must be in writing to be enforceable.
8. A fiduciary duty includes:
A. Loyalty and obedience
B. Advertising property
, C. Setting prices
D. Inspecting homes
Answer: A
Rationale: Fiduciary duties include loyalty, obedience, and care.
9. Which is NOT a fiduciary duty?
A. Confidentiality
B. Accounting
C. Marketing
D. Disclosure
Answer: C
Rationale: Marketing is not a fiduciary duty.
10. The Fair Housing Act prohibits discrimination based on:
A. Income
B. Race
C. Education
D. Age only
Answer: B
Rationale: Race is a protected class under Fair Housing laws.
11. Steering refers to:
A. Setting prices
B. Directing clients to certain neighborhoods based on protected class
C. Inspecting homes
D. Writing contracts
Answer: B
Rationale: Steering is illegal discrimination.
12. Blockbusting is:
A. Legal advertising
B. Encouraging homeowners to sell due to demographic changes
