Free Alabama Real Estate Practice Exam

Q1.A property sold for $450,000. The listing agent's commission is 3% and the selling agent's commission is 2.5%. If the listing agent splits their commission 60/40 with their broker, how much does the listing agent receive?

• A.$11,250
• B.$8,100
• C.$13,500
• D.$24,750

Q2.According to Alabama Real Estate Commission regulations, which party is responsible for ensuring that the estimated closing statement includes accurate information about homeowner association fees and transfer requirements?

• A.The title company or closing attorney exclusively
• B.The listing agent only, as they represent the seller
• C.The licensee preparing the statement, who must verify with appropriate sources
• D.The buyer, who must provide this information to their agent

Q3.RESPA (Real Estate Settlement Procedures Act) primarily protects consumers by requiring disclosure of what information?

• A.Property inspection results
• B.Property tax assessments
• C.Settlement costs and loan servicing details
• D.Homeowners insurance requirements

Q4.Under Alabama real estate law, earnest money deposits must be placed in a trust account within how many business days of receipt?

• A.1 business day
• B.3 business days
• C.5 business days
• D.7 business days

Q5.According to Alabama Real Estate Commission Rule 790-X-1-.19, a salesperson's license becomes inactive when they:

• A.Fail to renew by the expiration date only
• B.Are no longer associated with a qualifying broker
• C.Move to another state
• D.Fail to complete continuing education within 30 days of renewal

Q6.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

Q7.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

Q8.Under the Equal Credit Opportunity Act (ECOA), which factor would be legally permissible for a lender to consider when evaluating a mortgage loan application?

• A.The applicant's plans for having children in the future
• B.The predominant race of residents in the neighborhood where the property is located
• C.The applicant's debt-to-income ratio and credit score
• D.Whether the applicant receives alimony or child support payments

Q9.In Alabama, which of the following agency relationships does NOT require disclosure on the RECAD form?

• A.Seller's agent
• B.Buyer's agent
• C.Dual agent
• D.Property manager for rental properties

Q10.Under Alabama Code § 34-27-36, which of the following actions by a real estate salesperson would constitute grounds for disciplinary action by the Alabama Real Estate Commission?

• A.Failing to deliver a copy of a listing agreement to the seller within 48 hours
• B.Accepting compensation from both buyer and seller with full disclosure and consent from all parties
• C.Placing a 'For Sale' sign on a property without the owner's written consent
• D.Showing a property to prospective buyers during listed hours without the seller present

Q11.Under CERCLA (Superfund), which party is typically NOT liable for environmental cleanup costs at a contaminated property?

• A.Current property owner
• B.Previous property owner who owned during contamination
• C.Innocent purchaser who conducted due diligence
• D.Lender who forecloses and takes title

Q12.According to EPA guidelines, which action regarding underground storage tanks (USTs) is required for real estate professionals when representing clients in commercial property transactions?

• A.Advising clients to investigate potential environmental liabilities associated with USTs
• B.Conducting soil contamination testing on all properties with current or former USTs
• C.Obtaining EPA permits for any existing USTs on the property
• D.Removing all USTs before completing the transaction

Q13.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

Q14.Under 24 C.F.R. § 100.600(a)(2), what standard is used to evaluate hostile environment harassment?

• A.Only the frequency of the conduct
• B.Only whether the conduct was physical
• C.Whether the harasser subjectively intended to offend
• D.The totality of the circumstances

Q15.A broker's license lapses because the broker failed to complete the required continuing education and renew on time. One of the broker's affiliated salespersons continues to show properties and write offers during the lapse period. Which of the following best describes the legal consequence of this situation under general licensing principles?

• A.Both the broker and the salesperson may be subject to disciplinary action, because the salesperson cannot lawfully perform licensed activities when the supervising broker's license is not active, and the broker allowed the situation to occur.
• B.Only the broker faces discipline; the salesperson acted in good faith and is fully protected because the salesperson's own license remained active.
• C.The salesperson's activities are lawful as long as the salesperson's individual license is current, because a salesperson license operates independently of the broker's license status.
• D.The broker's license lapse is automatically cured once the broker completes the missing continuing education, retroactively validating all transactions conducted during the lapse period.