CE Shop (Alabama) Final Exam Review
Questions with Verified Answers
Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer.
What will happen to the check now? - ANSWERSAn escrow agent will hold the funds in
a trust account until the agreement's terms are satisfied.
Cheryl, the aggrieved claimant on a complaint against a licensee, has just won her
claim. She demonstrated that the licensee was responsible for her losing $60,000. She
also paid for a lawyer, which was another $5,000. With other fees and incidentals, her
total damages are $67,000. What is the amount she'll receive? - ANSWERS$25,000
Jerrold reviews the floor plan of the Knoxville house he's going to sell. It's 3,800 square
feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its
asking price. What has Jerrold done? - ANSWERSIntentional misrepresentation
Which of the following best describes an inactive license? - ANSWERSThis license
status means that you've paid your license fee but haven't completed your CE
requirements.
If you, as an Alabama licensee, make a statement in an ad that you should have known
was false, what are you guilty of? - ANSWERSMisrepresentation
Which of the following is a minimum service that an Alabama licensee must provide to
her clients? - ANSWERSDisclosing any material facts the licensee knows about that the
client couldn't reasonably ascertain
Alabama broker Jim is acting as a limited consensual dual agent for seller Christine and
buyer Blake. Which of the following is required for Jim to act in this capacity? -
ANSWERSHe must get the written, informed, advance consent before entering into the
relationship.
What action may licensees take if they're unhappy with the commission's final decision
on their hearing? - ANSWERSThey may request a rehearing.
, The funds placed in trust accounts are insured by the ______. - ANSWERSFDIC
When it comes to earnest money, which one of the following statements is true? -
ANSWERSEarnest money must be placed in a trust account.
D'Wayne is acting as the buyer's agent for Alabama resident Rocky in a real estate
transaction. In this transaction, what is D'Wayne's role? - ANSWERSA single agent
Julie is working with buyer clients and has prepared an estimated closing statement.
Which of the following statements is true? - ANSWERSShe must provide it when an
offer is signed.
Should the broker end up in litigation, any trust funds not safely tucked away in a trust
account could be ______. - ANSWERSFrozen
Which one of the following is a true statement regarding the termination of qualifying
broker status in Alabama? - ANSWERSQualifying brokers have to notify their brokerage
and the commission in writing if they wish to terminate their status.
For how long must an Alabama licensee retain transaction file records after the date of
the transaction? - ANSWERSThree years
Which of the following statements about escrow accounts is correct? -
ANSWERSEscrow accounts are managed by escrow agents, and are used to hold
funds belonging to others, such as earnest money deposits.
Which entity administers and enforces Alabama's residential and commercial laws for
activities that require a license? - ANSWERSAlabama Real Estate Commission
Susie has opted out of opening an escrow account with her mortgage lender, which
means she has a lower monthly payment. She still needs to save up, though, to make
sure she can pay for taxes and ______. - ANSWERSInsurance
What's one of the steps you need to take if you choose to affiliate with a different
broker? - ANSWERSNotify the commission by certified or registered mail.
Maria is the buyer's agent, and Julia is the seller's agent in a real estate transaction in
Alabama. Jack is Maria's qualifying broker. Julia works for Kyle's firm. From whom can
Julia accept compensation? - ANSWERSKyle
Which area of real estate law governs the use of contracts, explains the elements
required to make a contract valid, and describes what happens if a breach of contract
should occur? - ANSWERSContract law
Questions with Verified Answers
Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer.
What will happen to the check now? - ANSWERSAn escrow agent will hold the funds in
a trust account until the agreement's terms are satisfied.
Cheryl, the aggrieved claimant on a complaint against a licensee, has just won her
claim. She demonstrated that the licensee was responsible for her losing $60,000. She
also paid for a lawyer, which was another $5,000. With other fees and incidentals, her
total damages are $67,000. What is the amount she'll receive? - ANSWERS$25,000
Jerrold reviews the floor plan of the Knoxville house he's going to sell. It's 3,800 square
feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its
asking price. What has Jerrold done? - ANSWERSIntentional misrepresentation
Which of the following best describes an inactive license? - ANSWERSThis license
status means that you've paid your license fee but haven't completed your CE
requirements.
If you, as an Alabama licensee, make a statement in an ad that you should have known
was false, what are you guilty of? - ANSWERSMisrepresentation
Which of the following is a minimum service that an Alabama licensee must provide to
her clients? - ANSWERSDisclosing any material facts the licensee knows about that the
client couldn't reasonably ascertain
Alabama broker Jim is acting as a limited consensual dual agent for seller Christine and
buyer Blake. Which of the following is required for Jim to act in this capacity? -
ANSWERSHe must get the written, informed, advance consent before entering into the
relationship.
What action may licensees take if they're unhappy with the commission's final decision
on their hearing? - ANSWERSThey may request a rehearing.
, The funds placed in trust accounts are insured by the ______. - ANSWERSFDIC
When it comes to earnest money, which one of the following statements is true? -
ANSWERSEarnest money must be placed in a trust account.
D'Wayne is acting as the buyer's agent for Alabama resident Rocky in a real estate
transaction. In this transaction, what is D'Wayne's role? - ANSWERSA single agent
Julie is working with buyer clients and has prepared an estimated closing statement.
Which of the following statements is true? - ANSWERSShe must provide it when an
offer is signed.
Should the broker end up in litigation, any trust funds not safely tucked away in a trust
account could be ______. - ANSWERSFrozen
Which one of the following is a true statement regarding the termination of qualifying
broker status in Alabama? - ANSWERSQualifying brokers have to notify their brokerage
and the commission in writing if they wish to terminate their status.
For how long must an Alabama licensee retain transaction file records after the date of
the transaction? - ANSWERSThree years
Which of the following statements about escrow accounts is correct? -
ANSWERSEscrow accounts are managed by escrow agents, and are used to hold
funds belonging to others, such as earnest money deposits.
Which entity administers and enforces Alabama's residential and commercial laws for
activities that require a license? - ANSWERSAlabama Real Estate Commission
Susie has opted out of opening an escrow account with her mortgage lender, which
means she has a lower monthly payment. She still needs to save up, though, to make
sure she can pay for taxes and ______. - ANSWERSInsurance
What's one of the steps you need to take if you choose to affiliate with a different
broker? - ANSWERSNotify the commission by certified or registered mail.
Maria is the buyer's agent, and Julia is the seller's agent in a real estate transaction in
Alabama. Jack is Maria's qualifying broker. Julia works for Kyle's firm. From whom can
Julia accept compensation? - ANSWERSKyle
Which area of real estate law governs the use of contracts, explains the elements
required to make a contract valid, and describes what happens if a breach of contract
should occur? - ANSWERSContract law
