Free Alabama Real Estate Practice Exam

Q1.Under Alabama real estate regulations, what is required when a real estate company changes its place of business address?

• A.File a change of address form within 10 days and pay a fee
• B.File a change of address form within 30 days with no additional fee required
• C.Apply for a new company license at the new location
• D.Notify AREC within 10 days but no formal filing is required

Q2.Which type of ownership gives a person the most complete bundle of rights in real property?

• A.Life estate
• B.Leasehold estate
• C.Fee simple absolute
• D.Remainder interest

Q3.Radon is classified by the EPA as a:

• A.Class A carcinogen and the second-leading cause of lung cancer in the U.S.
• B.Class B carcinogen requiring mandatory remediation above 2 pCi/L
• C.Nuisance pollutant with no established health threshold
• D.Regulated hazardous waste requiring state agency notification

Q4.According to Alabama regulations, which item must be clearly identified as an estimate on a closing statement when the exact amount is not yet determined?

• A.Recording fees for the deed
• B.Real estate commission amounts
• C.Prorated property taxes
• D.Title insurance premiums

Q5.A deed restriction that prohibits the sale of alcohol on a property is an example of what type of land use control?

• A.Public land use control
• B.Governmental regulation
• C.Zoning ordinance
• D.Private land use control

Q6.Under the Fair Housing Act, which advertising practice would be considered discriminatory steering?

• A.All of the above practices constitute illegal steering
• B.Advertising properties only in newspapers serving specific ethnic communities
• C.Using models of only one race in all real estate advertising materials
• D.Describing neighborhood demographics to discourage certain protected classes from viewing properties

Q7.According to Alabama Real Estate Commission rules, which violation would subject a licensee to potential suspension or revocation of their license?

• A.Using a standard purchase agreement form approved by the Alabama Association of Realtors
• B.Advertising a property as 'investment grade' without providing specific financial projections
• C.Making substantial misrepresentations regarding the condition of a property to induce a sale
• D.Scheduling property showings during normal business hours

Q8.ADRE asks to audit property-management records. What production standard does § 32-2175 apply?

• A.Produce them at a reasonable time and place as required
• B.Wait until the next license renewal
• C.Produce only records favorable to the firm
• D.Refuse unless every tenant consents

Q9.A brokerage prefers the phrase 'primary bedroom.' How should the course characterize that choice?

• A.As an Arizona statutory vocabulary mandate.
• B.As a possible inclusive style choice, not a legal requirement identified in the cited law.
• C.As prohibited advertising.
• D.As an ADRE license condition.

Q10.Under RECAD, which type of agency relationship allows a real estate licensee to represent both the buyer and seller in the same transaction?

• A.Single agency only
• B.Designated agency
• C.Dual agency with informed written consent
• D.Facilitator relationship

Q11.Under Alabama Real Estate License Law, which of the following would be considered a violation of the requirement to maintain proper trust account procedures?

• A.Depositing earnest money into the broker's operating account and using it to pay office rent
• B.Maintaining earnest money in a separate trust account until closing
• C.Providing written receipts to clients for all trust fund deposits
• D.Reconciling trust account records monthly with bank statements

Q12.According to Alabama Administrative Code Chapter 790-X-1-.26, within how many days must a licensee respond to a complaint filed against them with the Alabama Real Estate Commission?

• A.10 days
• B.15 days
• C.20 days
• D.30 days

Q13.According to RECAD provisions in Alabama Code § 34-27-85, which duty does a licensee owe to all parties in a real estate transaction, regardless of agency relationship?

• A.Negotiating the best possible price
• B.Providing legal advice on contract terms
• C.Treating all parties honestly and fairly
• D.Maintaining confidentiality of all information

Q14.Under Alabama real estate law, a salesperson's license automatically becomes inactive if they fail to renew by the expiration date. What is the maximum period a license can remain inactive before it expires permanently?

• A.1 year
• B.2 years
• C.3 years
• D.5 years

Q15.A dual-agency situation arises in Alabama where the same broker represents both the buyer and the seller on the same transaction. The broker has already provided the seller with an estimated closing statement reflecting the agreed-upon 5% total commission. After written informed consent to dual agency is obtained from both parties, the buyer requests a buyer's estimated closing statement as well. Which of the following correctly describes the broker's obligations in this scenario under Alabama law?

• A.Because dual agency is now disclosed and consented to, the broker is relieved of providing separate estimated closing statements to each party and may provide a single combined statement.
• B.The broker must provide both the seller's estimated closing statement and a separate buyer's estimated closing statement, as the duty to provide each client with an estimated closing statement is independent of the dual-agency relationship and is required under AREC rules.
• C.The broker may provide a buyer's estimated closing statement only if the buyer's lender has already issued a Loan Estimate, because Alabama prohibits brokers from independently estimating buyer closing costs.
• D.In a dual-agency transaction, only the closing attorney is authorized to prepare and deliver estimated closing statements to both parties; the broker's obligation terminates upon receipt of dual-agency consent.