Free Alaska Real Estate Practice Exam

Q1.A seller's agent in Alaska learns that the home's well produces water that has tested above the safe threshold for arsenic but the seller instructs the agent to say nothing. Under AS 08.88 and 12 AAC 64, what must the licensee do?

• A.Follow the seller's instructions because the seller is the client and controls the disclosure decision
• B.Disclose the arsenic test results to prospective buyers because it is a material fact affecting the value or desirability of the property
• C.Refer all questions about water quality to a home inspector and remain silent on the issue
• D.Disclose only if the buyer asks directly about water quality

Q2.The Truth-in-Lending Act (TILA) requires disclosure of the Annual Percentage Rate (APR) for which types of transactions?

• A.Consumer credit transactions secured by real estate
• B.Commercial loans only
• C.Cash transactions only
• D.Business credit lines only

Q3.Under the post-NAR-settlement buyer-broker agreement, if a buyer's agent earns more from the seller than the amount specified in the agreement, the agent must:

• A.Keep the difference as a bonus
• B.Donate the excess to a charitable organization
• C.Notify ADRE of the overage within 30 days
• D.Refund the excess to the buyer or credit it toward costs

Q4.A property management agreement in Alaska grants a broker the authority to lease a residential unit. Which of the following actions would EXCEED the broker's authority under a standard property management agreement and require separate, specific written authorization from the owner?

• A.Executing a two-year fixed-term lease on behalf of the owner
• B.Collecting monthly rent and depositing it into the broker's trust account
• C.Enforcing the existing lease terms with the current tenant
• D.Advertising the property for rent using the owner's approved rental rate

Q5.A real estate agent represents a seller in a transaction. The buyer approaches the agent directly and asks to be shown other properties. What type of agency relationship would be created if the agent agrees to represent the buyer in purchasing a different property from a different seller?

• A.Designated agency
• B.Single agency
• C.Dual agency
• D.Subagency

Q6.Which state agency is responsible for the day-to-day administration of Alaska real estate licensing under the authority granted by AS 08.88?

• A.The Alaska Real Estate Commission acting independently of any other state body
• B.The Division of Corporations, Business and Professional Licensing (DCBPL) within the Department of Commerce, Community, and Economic Development
• C.The Alaska Department of Law through its consumer protection unit
• D.The Alaska Housing Finance Corporation (AHFC)

Q7.Under Alaska law, a licensed salesperson who wishes to engage in real estate activities must operate under the supervision of a broker. If a salesperson's employing broker surrenders or loses their license, what must the salesperson do in order to continue practicing real estate legally?

• A.The salesperson may continue working independently for up to 30 days while seeking a new broker.
• B.The salesperson must immediately cease all licensed real estate activity until they are affiliated with a new licensed broker.
• C.The salesperson may transfer all active listings to another broker without notifying the Alaska Real Estate Commission.
• D.The salesperson automatically becomes an independent broker until a new employing broker is found.

Q8.A salesperson employed by a licensed Alaska broker is managing several residential rental properties. The salesperson collects monthly rents. Under 12 AAC 64, who bears ultimate responsibility for ensuring that the collected rents are properly deposited into a trust account?

• A.The salesperson, because the salesperson physically collected the funds.
• B.The property owner, because the owner authorized the collection of rent.
• C.The employing broker, because all trust account obligations under 12 AAC 64 rest with the broker.
• D.The Alaska Real Estate Commission, which holds all disputed funds in escrow.

Q9.What type of mortgage loan allows borrowers to make interest-only payments for a specified period before beginning principal and interest payments?

• A.Conventional loan
• B.Balloon mortgage
• C.Reverse mortgage
• D.Interest-only loan

Q10.When must agency disclosure typically be provided to prospective clients according to general real estate practice standards?

• A.Only after a purchase agreement is signed
• B.Only when conflicts of interest arise
• C.At the first substantive contact about specific property
• D.At the closing table

Q11.Under the Fair Housing Act, which of the following is NOT considered a protected class in housing discrimination cases?

• A.Sexual orientation
• B.National origin
• C.Familial status
• D.Religion

Q12.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.

Q13.A newly licensed Alaska real estate salesperson must affiliate with a licensed real estate broker before engaging in any licensed activities. What happens to a salesperson's license if they are not affiliated with a licensed broker under Alaska law?

• A.The salesperson may continue practicing independently for up to 90 days while seeking a sponsoring broker
• B.The license is automatically revoked by the Alaska Real Estate Commission after 30 days of non-affiliation
• C.The salesperson's license is placed on inactive status and the licensee may not perform licensed real estate activities until affiliated with a licensed broker
• D.The salesperson may conduct limited activities such as referrals and open houses without broker affiliation

Q14.A property manager in Alaska enters into a management agreement that grants authority to sign leases on behalf of the owner. Which of the following BEST describes the legal concept that governs the property manager's authority in this situation under Alaska license law?

• A.Implied agency, because the manager is performing services for compensation.
• B.Express authority granted within the written property management agreement as required under AS 08.88.
• C.Universal agency, because the manager can perform any act the owner could perform.
• D.Ostensible authority, because tenants assume the manager can sign leases.

Q15.A managing broker requires all affiliated salespersons to use a standard exclusive buyer representation agreement with a minimum six-month term and a compensation clause payable even if the buyer purchases a FSBO property. A salesperson's client purchases a FSBO home, and the seller pays no commission. The broker seeks to enforce the compensation clause against the buyer. Under general brokerage principles governing personal services agreements, which statement best describes the broker's legal position?

• A.The compensation clause is generally enforceable against the buyer if the agreement was properly disclosed, signed, and the broker procured the transaction, because buyers may contractually agree to pay their broker regardless of seller contribution.
• B.The clause is unenforceable in all circumstances because RESPA prohibits brokers from receiving compensation not paid by sellers in residential transactions.
• C.The clause is enforceable only if the buyer is a licensed real estate professional, as general consumers are protected from buyer-side compensation obligations.
• D.The clause is enforceable only if the managing broker personally negotiated the FSBO transaction, as supervision liability transfers compensation obligations to the broker.