Free Alaska Real Estate Practice Exam

Q1.FinCEN's Geographic Targeting Orders (GTOs) require title companies in covered Arizona markets to:

• A.Report all-cash residential purchases above a threshold to FinCEN
• B.Refuse all-cash transactions without prior government approval
• C.Charge a 1% surcharge on all-cash closings for AML compliance
• D.Notify ADRE of any all-cash transaction within 5 days

Q2.A buyer in Alaska signs a written personal services agreement with a salesperson. Under Alaska law, this agreement establishes which type of relationship between the buyer and the salesperson's employing broker?

• A.An agency relationship in which the broker represents the buyer as a client
• B.A transactional relationship with no fiduciary duties owed to the buyer
• C.A dual agency relationship by default
• D.A subagency relationship with the listing broker

Q3.A salesperson representing a seller tells a prospective buyer that the home's roof was replaced two years ago, knowing this statement is false. Under Alaska law, this conduct is best characterized as:

• A.Puffery, which is legally permissible opinion in a sales transaction
• B.Negligent misrepresentation, which requires the buyer to prove actual damages before any license action can occur
• C.A violation of the prohibition against fraudulent or dishonest dealing under AS 08.88.461, which can result in license discipline
• D.A civil matter only, with no consequences to the salesperson's license

Q4.A broker's exclusive buyer representation agreement specifies that the broker will conduct a reasonable environmental inquiry by reviewing publicly available EPA records for the target property. A buyer later discovers the purchased property is listed on the EPA's CERCLA National Priorities List (Superfund site), and the broker never reviewed the EPA database despite the agreement's language. The buyer sues the broker for breach of the personal services agreement. Under CERCLA and general brokerage principles, which statement BEST describes the broker's exposure?

• A.The broker has no CERCLA liability because only current property owners and operators can be held liable as potentially responsible parties under CERCLA, and a broker never holds title.
• B.The broker faces potential liability for breach of the buyer representation agreement because the broker failed to perform a contractually promised service; additionally, failure to disclose a known Superfund designation could constitute a material misrepresentation, though CERCLA itself does not create a private cause of action against brokers.
• C.The broker is fully protected because CERCLA's innocent landowner defense extends to real estate brokers who did not acquire an ownership interest in the contaminated property.
• D.The broker's liability is preempted by CERCLA because federal environmental law exclusively governs all claims arising from contaminated property transactions, eliminating any state or contractual cause of action against the broker.

Q5.A property has an annual net operating income of $48,000 and was purchased using a capitalization rate of 8%. Three years later, the cap rate for similar properties has decreased to 7%. What is the new estimated value of the property?

• A.$600,000
• B.$685,714
• C.$576,000
• D.$480,000

Q6.Which type of estate gives the holder the most complete ownership rights in real property?

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

Q7.Under RESPA Section 8, which of the following would constitute an illegal kickback arrangement that could result in criminal penalties for a real estate licensee?

• A.Accepting a referral fee from another licensed real estate agent for sending a client
• B.Receiving a commission split from a cooperating broker in an MLS transaction
• C.Getting paid marketing fees from a title company in exchange for referring clients to that company
• D.Earning a bonus from their employing broker for exceeding annual sales goals

Q8.A licensee in Alaska is representing a seller in a transaction and learns that the property has a history of flooding in the basement that was not disclosed in the seller's disclosure statement. The seller instructs the licensee to say nothing to prospective buyers about the flooding. Under the Alaska standards of conduct, the licensee must:

• A.Follow the seller's instruction because the seller is the client and the licensee owes undivided loyalty to the seller.
• B.Disclose the known material defect to prospective buyers regardless of the seller's instruction, as concealing it would constitute a prohibited practice.
• C.Disclose the defect only if directly and specifically asked by a prospective buyer.
• D.Document the seller's instruction in writing and then remain silent, as written documentation protects the licensee from liability.

Q9.A licensee in Alaska is representing a seller and learns that the property's on-site well has tested positive for elevated arsenic levels, a fact the seller wants kept confidential. Under Alaska law, what must the licensee do?

• A.Disclose the arsenic contamination to prospective buyers because it is a material fact, regardless of the seller's instructions
• B.Honor the seller's confidentiality request, since the duty of loyalty to the client overrides all other duties
• C.Disclose only if the buyer's home inspector is likely to discover the contamination anyway
• D.Withdraw from the listing immediately without any obligation to disclose

Q10.Which type of encumbrance is a non-financial restriction on how property may be used?

• A.A mortgage or deed of trust
• B.A deed restriction or CC&R (covenant, condition, and restriction)
• C.A mechanic's lien filed by a contractor
• D.An IRS federal tax lien

Q11.A licensed Alaska real estate salesperson wants to upgrade to an associate broker license. Under AS 08.88 and 12 AAC 64, which of the following correctly describes a requirement the salesperson must satisfy BEFORE the Alaska Real Estate Commission will issue an associate broker license?

• A.The salesperson must have been actively licensed in Alaska for at least one year and complete the required broker pre-licensing education
• B.The salesperson must have been actively licensed in Alaska for at least two years and complete the required broker pre-licensing education
• C.The salesperson must have been actively licensed in Alaska for at least three years and complete the required broker pre-licensing education
• D.The salesperson must have been actively licensed in Alaska for at least five years and pass an associate broker examination separate from the broker examination

Q12.Under Alaska law, which state agency is directly responsible for licensing and regulating real estate salespersons and brokers in Alaska?

• A.The Alaska Department of Commerce, Community, and Economic Development through the Alaska Real Estate Commission
• B.The Alaska Division of Banking and Securities
• C.The Alaska Attorney General's Office
• D.The Alaska Department of Revenue

Q13.If a buyer obtains conventional financing and the property appraises at $490,000 against a $510,000 purchase price with no appraisal contingency, what is the buyer's most likely obligation?

• A.The seller must reduce the price to $490,000 automatically
• B.The lender will fund $510,000 and ignore the appraisal
• C.The transaction cancels and earnest money is returned to the buyer
• D.The buyer must bridge the $20,000 gap in cash or renegotiate with the seller

Q14.Under Alaska's continuing education requirements for real estate salesperson license renewal, which of the following statements is accurate?

• A.Continuing education is optional for salespersons who have held a license for more than ten years
• B.Alaska salespersons must complete Commission-approved continuing education hours during each license renewal cycle, and the curriculum must include mandatory topics specified by the Alaska Real Estate Commission under 12 AAC 64
• C.Continuing education hours completed in another state fully satisfy Alaska's renewal requirements without any Alaska-specific coursework
• D.Salespersons may substitute active transaction experience for continuing education hours at the Commission's discretion

Q15.A salesperson tells a prospective buyer that the property's neighborhood is 'the best investment you'll find in Anchorage' and that 'values here never go down.' Under Alaska law, how should these statements be evaluated?

• A.Both statements are actionable misrepresentations because all statements made during a sale must be objectively verifiable
• B.'Best investment' is permissible puffery, but claiming values 'never go down' could constitute a prohibited misrepresentation of a material fact under AS 08.88.461 if presented as a statement of fact
• C.Both statements are legally protected sales puffery and cannot form the basis of any disciplinary action
• D.Neither statement is problematic as long as the salesperson genuinely believed them to be true at the time they were made