Free Alabama Real Estate Practice Exam

Q1.According to Alabama Real Estate Commission rules, a licensed salesperson who fails to deliver a required disclosure form to a client within the mandated timeframe has committed which type of violation?

• A.A criminal misdemeanor requiring court prosecution
• B.A violation that may result in disciplinary action including fines or license suspension
• C.A civil matter between the parties with no regulatory consequences
• D.An administrative error with no potential penalties

Q2.A real estate contract contains a clause stating that if the buyer fails to obtain financing by a specified date, the contract will automatically terminate. This type of clause is known as a:

• A.Condition subsequent
• B.Condition precedent
• C.Covenant
• D.Warranty

Q3.According to Alabama real estate law, what is the minimum experience requirement for an individual to qualify for a broker license?

• A.One year of active real estate sales experience
• B.Two years of active real estate sales experience within the past five years
• C.Three years of active real estate sales experience
• D.Five years of active real estate sales experience

Q4.Under Alabama Code § 34-27-36, which of the following actions does NOT require a formal hearing before the Alabama Real Estate Commission?

• A.License revocation
• B.License suspension
• C.Issuance of a letter of caution
• D.Imposition of a civil penalty exceeding $1,000

Q5.A property sold for $450,000. The listing agent's commission was 3% and the selling agent's commission was 2.5%. If the listing agent splits their commission 60/40 with their broker (agent keeps 60%), how much commission does the listing agent receive?

• A.$6,075
• B.$8,100
• C.$13,500
• D.$24,750

Q6.Under federal fair housing laws, which of the following advertising practices would be considered discriminatory?

• A.Stating 'no pets allowed' in rental advertisement
• B.Advertising 'walk to Catholic church' in property description
• C.Including 'senior discount available' for buyers over 55
• D.Mentioning 'excellent schools nearby' in listing description

Q7.According to RECAD requirements in Alabama, what must happen before a licensee can act as a dual agent representing both buyer and seller?

• A.Obtain approval from the Alabama Real Estate Commission
• B.Provide a detailed financial disclosure to both parties
• C.Obtain informed written consent from both parties
• D.Complete additional continuing education on dual agency

Q8.Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), which federal agency has the authority to identify and remediate contaminated properties that could affect real estate transactions?

• A.Department of Housing and Urban Development (HUD)
• B.Environmental Protection Agency (EPA)
• C.Consumer Financial Protection Bureau (CFPB)
• D.Federal Emergency Management Agency (FEMA)

Q9.Under Alabama License Law, a qualifying broker (QB) who wishes to change the business entity structure of her licensed real estate company from a sole proprietorship to a limited liability company (LLC) must:

• A.Apply for a new company license in the LLC's name with AREC, surrender the existing sole proprietorship company license, and ensure the QB's individual broker license is properly affiliated with the new entity before any transactions are conducted under the LLC.
• B.File an amendment to the existing company license with AREC within 30 days of forming the LLC, allowing the original license number to carry over automatically to the new entity.
• C.Notify AREC within 10 days of the entity change but continue operating under the existing company license until its current renewal date, at which time the new entity name will be updated.
• D.Register the LLC with the Secretary of State and post the new entity name at the place of business; no action with AREC is required until the next biennial license renewal.

Q10.According to Alabama real estate law, a salesperson's license will automatically expire if the licensee fails to complete continuing education requirements. How many hours of continuing education must an Alabama real estate salesperson complete during each license renewal period?

• A.12 hours
• B.15 hours
• C.18 hours
• D.24 hours

Q11.How long does a complainant have to file a fair housing complaint with HUD under 42 U.S.C. § 3610?

• A.90 days
• B.1 year
• C.180 days
• D.3 years

Q12.In Alabama, when a buyer is assuming an existing mortgage, how should the outstanding loan balance be reflected on the estimated closing statement?

• A.As a credit to the seller only
• B.As a debit to the buyer and credit to the seller
• C.As a debit to the seller only
• D.As a credit to the buyer only

Q13.Under Alabama real estate regulations, a real estate company must maintain its principal place of business in compliance with which requirement?

• A.The office must be located in a commercial zoning district only
• B.The office must be open to the public during normal business hours and maintain required records
• C.The office must be at least 500 square feet in size
• D.The office must be located within 25 miles of the county courthouse

Q14.RESPA requires lenders to provide borrowers with a Loan Estimate within how many business days of receiving a loan application?

• A.1 business day
• B.2 business days
• C.3 business days
• D.5 business days

Q15.In Alabama, the RECAD form must include disclosure of which type of information?

• A.The licensee's commission rate and fee structure
• B.The agency relationship and duties owed to each party
• C.The property's complete repair history
• D.The seller's motivation for selling