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ALABAMA REAL ESTATE LICENSE Exam
Comprehensive Q&A for Guaranteed Pass A+
Latest Versions 2025
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)
+ Estimated Value of the Land
= Value of Site
Reproduction Cost vs Replacement Cost - correct-answer-Reproduction Cost is the
cost of creating an exact copy.
Replacement Cost is the cost of replacing a structure that can accomplish the
same purpose.
Three Types of Depreciation - correct-answer--Physical Deterioration
-Functional Obsolescence
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-Economic Obsolescence
Physical Deterioration - correct-answer-Actual wear and tear of structure, either
curable (economically feasible to repair) or incurable (not economically feasible to
repair).
Functional Obsolescence - correct-answer-Something about the property that is
out of date (turning off light by pulling string).
Economic Obsolescence - correct-answer-Something OUTSIDE of the property is
causing it to go down in value (the opening of a new airport).
Homes built before should be checked for lead. - correct-answer-1978.
Metes and Bounds always start at the - correct-answer-Point of Beginning
(POB).
Survey Terms - correct-answer-Monuments - fixed objects the identify the POB
and intersecting boundaries.
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Benchmark - a point used to establish elevations above sea level.
Datum - A reference point on the earth's surface from which measurements are
made such as heights of structures.
What must be included in all commercial e-mails as part of the CAN-SPAM Act? -
correct-answer--A legitimate return e-mail address.
-A physical address (street address or PO box).
-Truthful, clear subject line.
-A clear and conspicuous notice of the recipient's opportunity to opt-out.
-An email address or other mechanism by which the recipient may request not to
receive any future email messages from the sender.
-A clear and conspicuous notice that the message is an advertisement.
Each separate email in violation of CAN-SPAM Law is liable for a fine of up to $ .
- correct-answer-$16,000.
Encumbrances - correct-answer-To encumber means to burden or weigh down
with obligations.
An encumbrance is a claim against real property that generally lessens the value
or reduces the use of a property.
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Encumbrance is "attached" to the property, and transfers or conveys with the
property if sold.
Easement - correct-answer-An easement is the right to use land for a specific
purpose.
Easement Appurtenant (Easement by Necessity) - correct-answer--For landlocked
properties.
-Attached to the land.
-Stays with the DOMINANT tenement (the one who gets the benefit of the
easement).
-Even when sold - new owner acquires obligation.
Easement in Gross (Commercial) - correct-answer-Usually owned by government,
government agency, or public utility (utilities, roadway widening, etc).
Easement in Gross (Private) - correct-answer-Similar to commercial easements in
gross except:
-Holder is a person not a business or government.
-Terminates with the death of the holder.
-Holder cannot transfer the easement.
ALABAMA REAL ESTATE LICENSE Exam
Comprehensive Q&A for Guaranteed Pass A+
Latest Versions 2025
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)
+ Estimated Value of the Land
= Value of Site
Reproduction Cost vs Replacement Cost - correct-answer-Reproduction Cost is the
cost of creating an exact copy.
Replacement Cost is the cost of replacing a structure that can accomplish the
same purpose.
Three Types of Depreciation - correct-answer--Physical Deterioration
-Functional Obsolescence
,2|Page
-Economic Obsolescence
Physical Deterioration - correct-answer-Actual wear and tear of structure, either
curable (economically feasible to repair) or incurable (not economically feasible to
repair).
Functional Obsolescence - correct-answer-Something about the property that is
out of date (turning off light by pulling string).
Economic Obsolescence - correct-answer-Something OUTSIDE of the property is
causing it to go down in value (the opening of a new airport).
Homes built before should be checked for lead. - correct-answer-1978.
Metes and Bounds always start at the - correct-answer-Point of Beginning
(POB).
Survey Terms - correct-answer-Monuments - fixed objects the identify the POB
and intersecting boundaries.
,3|Page
Benchmark - a point used to establish elevations above sea level.
Datum - A reference point on the earth's surface from which measurements are
made such as heights of structures.
What must be included in all commercial e-mails as part of the CAN-SPAM Act? -
correct-answer--A legitimate return e-mail address.
-A physical address (street address or PO box).
-Truthful, clear subject line.
-A clear and conspicuous notice of the recipient's opportunity to opt-out.
-An email address or other mechanism by which the recipient may request not to
receive any future email messages from the sender.
-A clear and conspicuous notice that the message is an advertisement.
Each separate email in violation of CAN-SPAM Law is liable for a fine of up to $ .
- correct-answer-$16,000.
Encumbrances - correct-answer-To encumber means to burden or weigh down
with obligations.
An encumbrance is a claim against real property that generally lessens the value
or reduces the use of a property.
, 4|Page
Encumbrance is "attached" to the property, and transfers or conveys with the
property if sold.
Easement - correct-answer-An easement is the right to use land for a specific
purpose.
Easement Appurtenant (Easement by Necessity) - correct-answer--For landlocked
properties.
-Attached to the land.
-Stays with the DOMINANT tenement (the one who gets the benefit of the
easement).
-Even when sold - new owner acquires obligation.
Easement in Gross (Commercial) - correct-answer-Usually owned by government,
government agency, or public utility (utilities, roadway widening, etc).
Easement in Gross (Private) - correct-answer-Similar to commercial easements in
gross except:
-Holder is a person not a business or government.
-Terminates with the death of the holder.
-Holder cannot transfer the easement.
