Test Questions Flashcards
What Is AREC?
Alabama real state commission
AREC stands for Alabama Real Estate Commission.
What types of real estate licenses does AREC issue?
Qualifying broker
Associate broker
Real Estate Agent Salesperson
Temporary Salesperson license
Permanent salesperson license
Company License
AREC issues various types of real estate licenses including qualifying broker, associate broker, real estate agent salesperson, temporary salesperson license, permanent salesperson license, and company license.
What are the requirements to become a broker?
Person must complete a 60 hr broker pre-license course. Submit proof that he or she has been engaged as an active licensed real estate salesman for at least 24 out of the 36 months immediately prior to application in any state. Must pass a National broker exam.
To become a broker, one must meet certain requirements such as completing a pre-license course, providing proof of active real estate sales experience, and passing a national exam.
What is a qualifying broker?
The qualifying or designated broker is the licensee that is responsible for supervising the acts of all real estate licensees at that address
A qualifying broker is the individual responsible for overseeing and supervising all real estate licensees at a specific address.
What must the applicant do when applying to be the qualifying broker?
The applicant must sign a statement assuming responsibility for the acts of 90% of licensees under him or her.
Example: When applying for the qualifying broker position, the applicant must also sign a statement taking responsibility for the acts of licensees under them.
Under Alabama license law, who is the qualifying broker responsible to?
The qualifying broker is responsible to both the commission, the public for all acts of licensees under them, and each company for which they are designated as qualifying broker.
No additional information.
Are there any exceptions to a salesperson having to be licensed under a broker?
There are no exceptions.
No additional information.
What must a nonresident broker do to be in compliance with Alabama license law?
A nonresident broker must show evidence that he or she has an office somewhere in the area that meets the requirements for AL license law office location.
No additional information.
Where can Alabama earnest money be held?
All earnest money pertaining to an agreement on property located in Alabama must be held in an escrow account in Alabama, where both parties agree in writing to have their money held.
No additional information.
What must a licensee do in the event their broker terminated their states?
Must find a new broker who will accept responsibility for them before they can actively engage in real estate business
Example sentence: If a licensee’s broker terminates their status, they must find a new broker to continue their real estate activities.
If a broker in another state wants to conduct business in AL, what are his options?
He can apply for a reciprocal Alabama License, or find an Alabama broker who will accept responsibility
No additional information
What are the requirements for a successful co-brokering relationship with a non-Alabama broker?
- Must be from a state that allows co-brokerage with Alabama brokers
- A co-brokerage agreement signed + sent to the commission in 10 days
- A copy of all written agreements shall be transmitted to the AREC within 10 days
- The Alabama broker shall be liable for all actions of the out-of-state broker
- All showings to be supervised by the Alabama broker
- All negotiations to be supervised by the Alabama broker
- Alabama broker name must appear in all advertising, including signs
- All earnest money shall be held in the account of the Alabama broker. Can be waived if both the buyer and seller agree in writing to release the Alabama broker of this responsibility
No additional information
What licenses are not required to contribute to the recovery fund?
Licensees on inactive status
Example sentence: A licensee on inactive status does not have to contribute to the recovery fund.
When must active licensees pay an additional $130?
When recovery fund balance is below $500,000
Example sentence: Active licensees must pay an additional $130 when the recovery fund balance falls below $500,000.
What must happen in order to collect from the recovery fund?
The injured party must have first notified the commission at the beginning of the action. They must have obtained a court ordered judgment against the licensee.
Example sentence: In order to collect from the recovery fund, the injured party must follow specific steps including notifying the commission and obtaining a court ordered judgment.
