Alabama Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1.
A broker lists a property and receives an offer that meets all the seller's terms.
Before presenting it, the seller tells the broker they have changed their mind and
do not wish to sell. What is the broker's most appropriate course of action?
A) Present the offer anyway to force the seller's hand.
B) Withdraw the listing and return the earnest money.
C) Honor the seller's instructions and withdraw the property from the market.
D) Counter the offer on behalf of the seller without their consent.
Answer: Honor the seller's instructions and withdraw the property from the
market. The seller has the right to revoke the listing at any time before
acceptance. The broker must follow the seller's lawful instructions.
2.
In Alabama, which of the following best describes the relationship between a real
estate agent and a client?
A) A casual business relationship with no fiduciary duties.
B) A fiduciary relationship requiring loyalty, obedience, and disclosure.
C) A partnership for the sole purpose of sharing commissions.
D) A buyer-seller relationship where the agent is the principal.
Answer: A fiduciary relationship requiring loyalty, obedience, and disclosure. An
agency relationship creates fiduciary duties including confidentiality, accounting,
loyalty, and disclosure to the client.
,3.
A property's legal description reads: "Commencing at the NW corner of Section
12, Township 3 South, Range 2 East, then East 660 feet to the Point of Beginning."
This description is an example of what system?
A) Metes and Bounds
B) Lot and Block
C) Rectangular Survey System
D) Unrecorded Plat
Answer: Rectangular Survey System. The reference to Township, Range, and
Section indicates the Public Land Survey System, also known as the Rectangular
Survey System.
4.
A salesperson is showing a home to a prospective buyer. The buyer asks if the
neighborhood is "quiet." The salesperson knows there is a planned construction
project nearby that will generate significant noise but has not been publicly
announced. What should the salesperson do?
A) State the neighborhood is quiet to secure the sale.
B) Change the subject and focus on the home's features.
C) Disclose the planned construction project to the buyer.
D) Advise the buyer to contact the city planning department themselves.
Answer: Disclose the planned construction project to the buyer. Material facts
affecting the property's value or desirability must be disclosed, even if not publicly
known, to avoid misrepresentation.
5.
Which type of estate is the most complete form of ownership and is indefinite in
duration?
A) Life Estate
B) Fee Simple Absolute
C) Leasehold Estate
D) Estate for Years
Answer: Fee Simple Absolute. Fee simple absolute is the highest form of
, ownership, granting the owner full rights to possess, use, and transfer the
property indefinitely.
6.
An Alabama real estate license is valid for how long?
A) One year
B) Two years
C) Three years
D) Four years
Answer: Two years. Alabama real estate licenses are issued for a two-year term
and must be renewed before the expiration date.
7.
What is the primary purpose of the Alabama Real Estate Commission (AREC)?
A) To set property tax rates for the state.
B) To regulate real estate licensees and enforce the license law.
C) To mediate contract disputes between buyers and sellers.
D) To appraise properties for mortgage lenders.
Answer: To regulate real estate licensees and enforce the license law. The AREC
is responsible for licensing, regulating, and disciplining real estate professionals in
Alabama.
8.
A seller's net proceeds are calculated by subtracting which of the following from
the sale price?
A) The original purchase price.
B) The mortgage balance and closing costs.
C) The buyer's down payment.
D) The appraised value.
Answer: The mortgage balance and closing costs. Net proceeds to the seller are
the sale price minus outstanding liens, mortgages, and closing costs (including
commissions).
9.
Which of the following is considered an "appurtenance" to a property?
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1.
A broker lists a property and receives an offer that meets all the seller's terms.
Before presenting it, the seller tells the broker they have changed their mind and
do not wish to sell. What is the broker's most appropriate course of action?
A) Present the offer anyway to force the seller's hand.
B) Withdraw the listing and return the earnest money.
C) Honor the seller's instructions and withdraw the property from the market.
D) Counter the offer on behalf of the seller without their consent.
Answer: Honor the seller's instructions and withdraw the property from the
market. The seller has the right to revoke the listing at any time before
acceptance. The broker must follow the seller's lawful instructions.
2.
In Alabama, which of the following best describes the relationship between a real
estate agent and a client?
A) A casual business relationship with no fiduciary duties.
B) A fiduciary relationship requiring loyalty, obedience, and disclosure.
C) A partnership for the sole purpose of sharing commissions.
D) A buyer-seller relationship where the agent is the principal.
Answer: A fiduciary relationship requiring loyalty, obedience, and disclosure. An
agency relationship creates fiduciary duties including confidentiality, accounting,
loyalty, and disclosure to the client.
,3.
A property's legal description reads: "Commencing at the NW corner of Section
12, Township 3 South, Range 2 East, then East 660 feet to the Point of Beginning."
This description is an example of what system?
A) Metes and Bounds
B) Lot and Block
C) Rectangular Survey System
D) Unrecorded Plat
Answer: Rectangular Survey System. The reference to Township, Range, and
Section indicates the Public Land Survey System, also known as the Rectangular
Survey System.
4.
A salesperson is showing a home to a prospective buyer. The buyer asks if the
neighborhood is "quiet." The salesperson knows there is a planned construction
project nearby that will generate significant noise but has not been publicly
announced. What should the salesperson do?
A) State the neighborhood is quiet to secure the sale.
B) Change the subject and focus on the home's features.
C) Disclose the planned construction project to the buyer.
D) Advise the buyer to contact the city planning department themselves.
Answer: Disclose the planned construction project to the buyer. Material facts
affecting the property's value or desirability must be disclosed, even if not publicly
known, to avoid misrepresentation.
5.
Which type of estate is the most complete form of ownership and is indefinite in
duration?
A) Life Estate
B) Fee Simple Absolute
C) Leasehold Estate
D) Estate for Years
Answer: Fee Simple Absolute. Fee simple absolute is the highest form of
, ownership, granting the owner full rights to possess, use, and transfer the
property indefinitely.
6.
An Alabama real estate license is valid for how long?
A) One year
B) Two years
C) Three years
D) Four years
Answer: Two years. Alabama real estate licenses are issued for a two-year term
and must be renewed before the expiration date.
7.
What is the primary purpose of the Alabama Real Estate Commission (AREC)?
A) To set property tax rates for the state.
B) To regulate real estate licensees and enforce the license law.
C) To mediate contract disputes between buyers and sellers.
D) To appraise properties for mortgage lenders.
Answer: To regulate real estate licensees and enforce the license law. The AREC
is responsible for licensing, regulating, and disciplining real estate professionals in
Alabama.
8.
A seller's net proceeds are calculated by subtracting which of the following from
the sale price?
A) The original purchase price.
B) The mortgage balance and closing costs.
C) The buyer's down payment.
D) The appraised value.
Answer: The mortgage balance and closing costs. Net proceeds to the seller are
the sale price minus outstanding liens, mortgages, and closing costs (including
commissions).
9.
Which of the following is considered an "appurtenance" to a property?
