Real Estate Law Flashcards by Zhanna Hall Alexander

To qualify for a real estate salesman license in Alabama, a person must:

a. Complete a course of study having a minimum of 60 classroom hours in a class meeting in Alabama.
b. Complete a course of study having a minimum of 60 classroom hours
c. Have a college degree
d. Have resided in Alabama for a minimum of 60 days

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Broker Mary Hart Operates a brokerage business within the corporate city limits of Montgomery, Hart:

a. May maintain a place of business in her home
b. May not hire salespeople
c. Must be sure her office is located on property zone for business
d. All of the above

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Under Alabama law, a licensee is prohibited from all of the following except:

a. Placing a “For Sale” sign on listed property without the permission of the owner
b. Accepting a fee from a mortgage lender for directing a prospective purchasers to that company for financing
c. If a salesperson, accepting a commission from anyone other than from his or her qualifying broker
d. Failing to maintain adequate records of withdrawals and disbursements from his or her business account.

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When a complaint is filed against an Alabama licensee:

a. . The licensee may choose to have the case tried by either commission or the Alabama Circuit Court.
b. The commission must notify the licensee of the charge at least 15 days prior to the hearing
c. The commission may immediately suspend the licensee’s certificate
d. All of the above.

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All of the following are regulated by the Alabama Real Estate License law except:

a. Real Estate appraiser
b. Residential real estate salesperson
c. Commercial real estate salesperson
d. Real estate auctioneer

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The primary purpose of the Real Estate Commission is to:

a. Protect the real estate brokers
b. Protect all licenses
c. Protect the public
d. Test people who want to obtain a real estate license

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A company who wishes to maintain more than one business location must apply for:

a. A license for each location
b. A partnership license
c. A qualifying brokers license
d. A corporate license

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A qualifying broker is required to keep copies of sales contracts, records of trust monies, and other documents relating to a sale of real estate for a period of:

a. 2 years
b. 5 years
c. 10 years
d. 3 years

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An individual violating a provision of the real estate license law for the first time can, if convicted face:

a. A fine not less than $100 no more than $500 or imprisonment for not more than 90 days
b. Suspension of license for not less than 90 days no more than 2 years
c. A fine of not less than $100 no more than $2500
d. A fine of not less than $25 no more than $1000, imprisonment up to 90 days for both.

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A real estate license is required for all of the following except:

a. Selling personally owned property
b. Offering to procure a prospective purchaser
c. Auctioning real estate
d. Buying, selling, or otherwise dealing in real estate options

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Which of the following is not grounds for suspension, or revocation of a licensee or other punishment of the licensee by the Real Estate Commission?

a. Taking a net listing
b. Acting for more than one party in a transaction without first obtaining the written consent of all parties
c. Failing to notify the multiple listing services of a sale of listed propery
d. Failing to inform buyer and seller of the approximate closing costs each will have to pay.

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Broker license applicant must meet all of the following requirements except:

a. Have been actively licensed for 24 out of 36 months in any state or be licensed in another state and be making application for a reciprocal Alabama licensee
b. Have been actively licensed for 24 out of lat 36 months in the state of Alabama
c. Be a minimum of 19 years of age
d. Be trustworthy and competent to carry out the duties of a real estate broker

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The commission’s final decision on a disciplinary action hearing may be appealed to the Alabama Circuit Court within:

a. 6 months
b. 90 days
c. 15 days
d. 30 days

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A nonresident broker may engage in real estate in Alabama if he or she has:

a. Successfully passed the Alabama nonresident real estate examination
b. Entered into an agreement with an Alabama broker who filed the agreement with the probate office of the county where the property lies
c. Entered into a a separate co-broker agreement for each parcel of property with a licensed Alabama broker who has filed a copy of such agreements with the Alabama Real Estate Commission
d. Provided the Alabama Real Estate Commission with a certified copy of her real estate license from a reciprocal state.

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If a corporation wishes to engage in the real estate practice in Alabama, it must designate a licensed broker who is to be the:

a. Qualifying broker
b. Associate broker
c. Managing broker
d. Broker-supervisor

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A real estate salesperson may engage in the real estate business without being under the direct supervision of a broker only if or she:

a. Lives in an area where there are no convenient brokers
b. Cannot get a licensed broker to sponsor him or her
c. Is the manager a branch office of a licensed broker
d. None of the above

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If a broker terminates the employment of a salesperson, the broker must:

a. Notify the commission and return the salesperson’s license to the commission
b. Remit all outstanding brokerage fees to the salesperson with 120 days of termination
c. Submit an affidavit to the commission stating the reasons for the salesperson’s termination
d. Sign a release that permits the salesperson to continue working on the existing listings for a period of three months

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Each sales associate and associate broker must do all of the following except:

a. Submit all written offer received
b. Complete 15 hours of C.E courses each year
c. Pay over to qualifying broker all funds of of others coming into their possession
d. Take the 6 month temporary license period to decide how to have licensed issued

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After passing license exam, applicant has the following option:

a. Have licensed issued on an active state as an “at large” license
b. Take 90 days to decide on how to have licensed issued
c. Pay license fee and $30 into Recovery Fund have licence issued on an inactive status
d. Take the 6 month temporary license period to decide how to have licensed issued.

Broker Adams is the listing broker for a house owned by Joe Doe. The house is sold and Adams collects $1000 earnest money which he deposits in his business account along with other commissions he has collected on houses sold by his firm. Adams is guilty of:

a. Commingling of funds
b. Nothing if he keeps records for minimum of 3 years
c. Nothing is he doesn’t spend the money
d. Misrepresentation

A licensed real estate broker who is engaged by or on behalf of a licensed qualifying broker is called:

a. Broker salesman
b. Broker-salesperson
c. Assistant broker
d. Associate broker

A $25 transfer fee must be paid for all the following except:

a. Licensee transferring to the new broker
b. Licensee changing name
c. Active licensee transferring to inactive
d. Transferring from temporary license to permanent status

Which of the following is not a requirement for a real estate licensee in Alabama?

a. Be at least 19 years of age
b. Have a high school diploma or its equivalent
c. Must not have had a real estate license revokes or rejected, except for failure of a licensing examination, in any state
d. Have a real estate qualifying broker sponsor applicant for licensee exam.

Every active licensee must pay an initial fee of ? into the Alabama Real Estate Recovery Fund.

a. $15
b. $25
c. $30
d. $75

Listing agreements in Alabama may be any of the following except: a. Legal verbal agreements for transaction brokerage services b. May provide in the written listing agreement for it to automatically renew for an additional period in the event the property has not sold in the original listing period. c. Exclusive right to sell agreements d. Open listing agreements.

Broker Hagan placed the following ad in his local newspaper. Which of the following would be correct concerning the law? "Real Sharp 3 BR, 2 BA house in quiet neighborhood. If interested, write to: PO BOX 562 Anytown, AL 35223 a. Broker Hagan failed to put the price of the property in ad which is a violation of license law. b. The ad is acceptable under Alabama Licensee Law if the property belongs to broker Hagan. c. He definitely violated the license law by leaving out the name of the real estate company and not identifying himself as a real broker d. If the ad does not include the name of the real estate company it must include the address of the property

Broker Kilroy listed property owned by Patten and he wrote in the listing agreement "seller to net no less than $110,000 with Broker to receive any and all above this amont as commission." This is an example of: a. net listing b. An exclusive right to sell listing c. Patten wanting to make sure he had no obligations to Broker Kilroy if he was to net less than $110,000 on any offer d. The free enterprise system

All of the following are violations of Licensee Law except: a. Present the commission , as payment for a fee or fine, a check that is returned unpaid b. Establishing an association, by employment or otherwise with an unlicensed person who is expected or required to act as a licensee. c. Establishing a minimum acceptable commission for you services d. Offering free lots or conducting lotteries for the purpose of influencing a party to purchase or lease real estate.

All of the following are violations of Licensee Law except: a. Making false promises to induce any person to enter into a contract b. Taking an exclusive right to sell to listing for a period longer than 180 days c. Acting for more than one party in a transaction without the written consent. d. Engaging in misrepresentation or dishonest or fraudulent acts when buying, selling, or renting real property to his own or of a spouse or child or parent

The annual license fee for the Broker's License is: a. $30 b. $25 c. $35 d. $95

All of the following are true concerning an inactive licensee except: a. A licensee may be renewed on an inactive status for an indefinite period b. A reactivation course is required to activate a license which has been inactive for more than 50% of during the preceding 24month period c. To activate license requires a $25 transfer fee d. Inactive licenses are not covered by the Real Estate Recovery Fund

RECAD requires all of the following except: a. Provide consumers with a consumer information booklet explaining the different types of Agency Services the may choose from b. Make Real Estate Brokerage Services disclosures as soon as reasonably possible c. The licensees to sign disclosure form d. Copy of disclosure form kept by Real Estate Company a minimum of 3 years

A real estate company can provide any of the following real estate services except: a. Single Agency for buyer b. Appraise property for seller c. Sub agency d. Limited Consensual Dual Agency

All of the following are true concerning a real estate broker except: a. The broker may qualify to act as a qualifying broker or may chose to service as an associate broker under the license of another qualifying broker b. The license fee, for the associate broker and qualifying broker is the same c. The broker must be registered to a specific real estate office d. Broker is required to only have one license no matter how many companies the broker serves as a qualifying broker.

Les Carnes made an application for an Alabama Real Estate license. After completing the necessary requirements he was issued a salesman's license. Soon after receiving his license, the Commission discovered he was 18 years of age instead of 19 as reported on the application. a. This would be considered a material misstatement of fact and Carnes would be guilty of Class A misdeamonor b. His license would be suspended until he reaches 19 c. He may apply for hardship license until reaching 19 d. Would not apply if he was married.

In addition to providing buyers and sellers with real estate brokerage services disclosure form as soon as reasonably possible the licensee is required to make an agency disclosure form when: a. Listing seller b. Obtaining and presenting offer to purchase c. Listing buyer c. Attending closing

Which of the following is true concerning the Real Estate Commission receiving a verified complaint on a licensee? a. On request of the Commission, the accused must give his side of the story b. The Commission shall revoke or suspend the license or impose a fine of not less than $25 but not more than $1000 on licensees c. If the Commission decides to accuse the licensee of a violation, they must give the accused 30 days advance notice of time, date, and place of hearing d. Licensees license will be suspended until outcome of the hearing

Which of the following is not true? a. A broker, when advertising the property of a principal, must always include the name of the company or broker b. A broker may advertise a fictitious property in order to develop prospects as long as the ad includes the name of the company or broker c. A broker may place a "F.S.B.O" sign on his own son's property which he is trying to sell d. A broker may advertise a property on which he has an open listing

Salesperson Sheila has just listed a "hot property" for the company, all of the following apply except: a. She must make sure every owner signs the listing contract and gets a copy of the same b. She should know that if the list contact does not include a definite expiration date she and her broker will be in violation of the Alabama License Law c. She should know the listing belongs to her company or qualifying broker if the business is a sole proprietorship d. The commission for the sale of this "property" is set by the Real Estate Commission.

All of the following are true concerning a salesman or an associate broker except: a. They are not to receive any rebate for any person in a real estate transaction b. They may be engaged by a qualifying independent contractor c. They must be register to a specific real estate office d. They may accept a net listing.

Broker Porter at the time he is listing a property to sell, decides he would like to buy the property. Broker Porter: a. May purchase property provided owner agrees to Broker Porter's terms and has full knowledge that Broker Porter is personally buying the property b. Cannot purchase property that he has been employed to sell as this would violate fiduciary duty owed to the principal c. Would be best advised to purchase the property in someone's else name in order to negotiate the best price d. Must submit a copy of the contract to Real Estate Commission within 10 days.

Salesman Susie has just received a contract on one of her listings and an earnest money check in the amount of $1000. Salesman Susie should: a. Deposit the money promptly into her escrow account b. Should hold the check until the transaction close c. May deposit into her personal account and use because her share of the commission at closing will be considerably more than $1000 d. Promptly remit contract and earnest money to her broker

All of the following are exempt from licensing except: a. All apartment managers b. Dealers in option c. Bank trust d. Cemetery lot salesmen

In Alabama, you must hold a real estate license to offer to perform any of the following acts except: a. Auction real estate b. Sell your mother's house c. Manage a condominium d. Prospecting for a listing

An applicant for an original license in Alabama must: a. Have a minimum score of 75 on state exam b. Pay $50 in the State Recovery Fund c. Be a resident of Alabama or sign a non resident agreement d. Pay $30 into State Recovery Fund if license is being issued inactive

In regards to the Qualifying Broker, the following statements are correct except: a. A person may get a broker's license age 21 b. The qualifying broker must have an office in an area zoned to allow for his business if there is zoning ordinances c. The broker may be the qualifying broker for more than one location provided all the written agreements are submitted to the Real Estate Comission d. The broker is responsible for all licensees licensed under broker

After having passed the state license exam, applicant has ____________ days to have the license issued. a. 60 b. 30 c. 15 d. 90

D. 90