Determine your answer, then click the arrow to see the correct response.
Which of the Following Is Required To Obtain an Alabama Real Estate Salesperson License?
A) Be at least 18 years old
B) Complete 60 hours of pre-license education
C) Pass the state and national portions of the real estate exam
D) All of the above
Correct Answer: D) All of the above
Explanation: To obtain a real estate salesperson license in Alabama, applicants must be at least 18 years old, complete 60 hours of pre-license education, and pass both the state and national portions of the real estate exam.
How Often Must Alabama Real Estate Licenses Be Renewed?
A) Every year
B) Every two years
C) Every three years
D) Every four years
Correct Answer: B) Every two years
Explanation: Alabama real estate licenses must be renewed every two years.
A Seller’s Agent in Alabama Learns From a Neighbor That the Property Being Sold Had a Major Fire Two Years Ago. The Seller Did Not Disclose This Information. What Should the Agent Do?
A) Ignore the information since it was not disclosed by the seller
B) Disclose the information to potential buyers
C) Only disclose the information if asked directly by a buyer
D) Report the seller to the Alabama Real Estate Commission
Correct Answer: B) Disclose the information to potential buyers
Explanation: Agents have a duty to disclose all known material facts about a property to potential buyers.
In Alabama, What Is the Minimum Amount of Time a Broker Must Retain Real Estate Transaction Records?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
Correct Answer: B) 3 years
Explanation: Alabama law requires brokers to retain real estate transaction records for a minimum of three years.
Which of the Following Statements Is TRUE About Dual Agency in Alabama?
A) Dual agency is illegal in Alabama
B) Dual agency is allowed if all parties give informed consent
C) Dual agency does not require disclosure to clients
D) Dual agency is only permitted in commercial transactions
Correct Answer: B) Dual agency is allowed if all parties give informed consent
Explanation: Dual agency is permitted in Alabama as long as both parties give their informed consent.
A Buyer Obtains a Mortgage for $150,000 at an Interest Rate of 4% for 30 Years. What Will Be the Buyer's Monthly Principal and Interest Payment? (Assume No Taxes or Insurance.)
A) $716.12
B) $719.23
C) $725.40
D) $729.20
Correct Answer: B) $719.23
Explanation: The monthly payment can be calculated using the loan amortization formula.
What Is the Primary Purpose of the Alabama Real Estate Commission (AREC)?
A) To set property tax rates
B) To regulate and license real estate professionals
C) To manage state-owned properties
D) To provide mortgage loans to buyers
Correct Answer: B) To regulate and license real estate professionals
Explanation: The primary purpose of the AREC is to regulate and license real estate professionals in Alabama.
A Buyer Makes an Offer on a House, Which the Seller Accepts. Before Closing, the Buyer Discovers the House Has Significant Termite Damage That Was Not Disclosed. What Recourse Does the Buyer Have?
A) The buyer can cancel the contract and receive a full refund of their deposit
B) The buyer must proceed with the purchase
C) The buyer can sue the seller for misrepresentation
D) Both A and C
Correct Answer: D) Both A and C
Explanation: The buyer can cancel the contract and receive a refund of their deposit or sue the seller for misrepresentation if significant undisclosed damage is found.
In Alabama, How Long Does a Landlord Have To Return a Tenant's Security Deposit After the Lease Ends?
A) 14 days
B) 21 days
C) 30 days
D) 60 days
Correct Answer: C) 30 days
Explanation: Alabama law requires landlords to return a tenant’s security deposit within 30 days after the lease ends.
A Home Is Sold for $200,000 With a 10% Down Payment. If the Loan Has an Interest Rate of 5% for 25 Years, What Is the Loan Amount?
A) $180,000
B) $185,000
C) $190,000
D) $195,000
Correct Answer: A) $180,000
Explanation: The loan amount is 90% of the purchase price, which is $200,000 x 0.90 = $180,000.