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ALABAMA REAL ESTATE LICENSE EXAM 2025/2026 |
COMPREHENSIVE QUESTIONS &ANSWERS LATEST 2025-
2026| GUARANTEED PASS|GRADED A+
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.
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$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 2025/2026 |
COMPREHENSIVE QUESTIONS &ANSWERS LATEST 2025-
2026| GUARANTEED PASS|GRADED A+
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)
