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Question & Answers ( Latest 2025 )
No real estate license is required for managing rental properties consisting of - CORRECT ANSWER ✔✔apartment complexes with more than four units each. Which of the following describes recognition of a real estate license from another state with reduced requirements for license in Alabama? - CORRECT ANSWER ✔✔Reciprocity A licensed salesperson wishes to change brokers and go to work for a different real estate company. The current broker refuses to send the license back to the AREC so it can be assigned to the new broker. What can the salesperson do to remedy this situation? - CORRECT ANSWER ✔✔Nothing; the new broker can simply file a request for the transfer and pay a $25 fee. How many years does a member serve during a term on the Alabama Real Estate Commission? - CORRECT ANSWER ✔✔Five. Members are appointed by the governor for five years and may serve no more than two full consecutive terms. Which of the following is TRUE regarding errors and omissions (E&O) insurance coverage? - CORRECT ANSWER ✔✔Most E&O policies contain an exclusion for coverage of company-owned real estate.
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If a temporary license is issued on an ACTIVE status with a qualifying broker, the licensee must complete a post licensing training class of _____ or the license will automatically convert to inactive status. - CORRECT ANSWER ✔✔30 hours within six months If, after a 12-month period, the temporary licensee has NOT completed the Commission's required postlicensing course, the temporary license will - CORRECT ANSWER ✔✔lapse. A man has been a licensed broker in Pennsylvania for more than 10 years. He is planning to move to Montgomery next year and apply for an Alabama broker's license. Almost 10 years ago, he was brought before the Pennsylvania Real Estate Commission and found guilty of commingling funds in his broker's escrow account when he allowed his property management fees to remain in the account instead of disbursing them every month. The Pennsylvania board fined him $ and suspended his broker's license for three months. What will the man have to do in order to obtain a license in Alabama? - CORRECT ANSWER ✔✔Provide a detailed explanation of the circumstances that led to the conviction, along with his application. This is in addition to the usual certificate of good standing that must be provided for any reciprocal license application.
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An applicant for a real estate license previously pled guilty to theft of services in the third degree, which is a crime of moral turpitude but only a misdemeanor. Is the applicant eligible for a real estate license? - CORRECT ANSWER ✔✔No in all circumstances. The applicant may not have been convicted of a felony or a crime involving moral turpitude nor have had a real estate application or license rejected or revoked in any state within two years before application on any grounds other than failure to pass a written examination. The applicant may apply for an eligibility waiver, however. After submitting evidence and appearing for a hearing, the Commission might grant eligibility. A temporary salesperson completes 30 hours of post license education and receives the appropriate license on September 1, 2014. What additional education requirements are required for the current license renewal period? - CORRECT ANSWER ✔✔Completion of the 30-hour post license course during a license renewal period satisfies the regular 15-hour continuing education requirement. Proposed members of the Alabama Real Estate Commission are nominated by - CORRECT ANSWER ✔✔the Alabama Association of REALTORS®.
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An associate broker personally manages a rental house for her mother, an activity that does not require a real estate license. With her qualifying broker's consent, the money and all rental activities are entirely separate from the real estate company. The associate broker's siblings discover she has been embezzling money from their mother. Is the qualifying broker liable? - CORRECT ANSWER ✔✔Yes, because the qualifying broker is responsible for all real estate activities of its licensees. Even if a licensee is engaged in personal activities or activities for a family member, the qualifying broker is still responsible for improprieties in those transactions. If the broker agrees that a licensee may conduct such business "outside the company," that the broker is referring only to advertising and compensation issues, not to the broker's liability for failure to properly supervise the licensee. A salesperson with an active license fails to renew that license by the deadline. In addition to the need to pay a penalty upon renewal, what other consequences are there? - CORRECT ANSWER ✔✔Automatic license conversion to inactive status, with licensee unable to engage in real estate activities or claim to be able to engage in such activities. The licensee can reactivate—reinstate—the license by paying the license renewal fee, in addition to the research and education fund fee and a $150 penalty. But the licensee must do so by September 30 of that same year. If not renewed by the second deadline, the license will lapse and cannot be renewed or reinstated.
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In Alabama, one of the required continuing education courses is called - CORRECT ANSWER ✔✔Risk Management: Avoiding Violations. Licensees must complete six hours of risk management classes every two years. In Alabama, holding which office prohibits a person from simultaneously becoming a member of the Alabama Real Estate Commission? - CORRECT ANSWER ✔✔State senator In Alabama, all active status license brokers and salespeople applying for renewal of their license must successfully complete how much continuing education? - CORRECT ANSWER ✔✔15 hours every two years. The Commission must approve continuing education courses. How many years of active licensed real estate experience are required to become a member of the Alabama Real Estate Commission? - CORRECT ANSWER ✔✔10 years of licensed and active real estate experience are required to become a member of the Alabama Real Estate Commission. Ten years with a license on inactive status do not qualify one for membership on the AREC.
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A salesperson works for a broker. An assistant works for the salesperson. The assistant decides to help out and show some listings for the salesperson while the salesperson is on vacation. Who is liable for the assistant's unlicensed real estate activities? - CORRECT ANSWER ✔✔The assistant, salesperson, and broker are all liable. If a licensee does not pay its license renewal fees by September 30 of the even-numbered years, and the license lapses, what steps are necessary to reinstate it? - CORRECT ANSWER ✔✔No reinstatement possible. The licensee must start all over again. If a licensee does not pay the renewal fee by August 31 of the even-numbered years (the renewal years), then a $150 late fee will be imposed. If the renewal fee and late fee are not paid by September 30 of that same year, the license will lapse and cannot be reinstated. Applicants for an Alabama real estate license must successfully complete - CORRECT ANSWER ✔✔a criminal background check. How many members of the Alabama Real Estate Commission are required to be African-American? - CORRECT ANSWER ✔✔One. The Alabama Real Estate Commission must have one member from each of the seven Congressional districts in Alabama, plus an at-large member who is a consumer and not a licensee, plus another at-large member who must be African American.
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license period to meet those continuing education requirements? - CORRECT ANSWER ✔✔None A licensed salesperson, who is also a college student, wants to have two different qualifying brokers so that she can sell real estate in Mobile County, where she attends the University of South Alabama, and in Jefferson County, where her parents live. Can she do this? - CORRECT ANSWER ✔✔No, because she can have only one qualifying broker at a time The $150 late-renewal penalty is imposed if the licensee does not renew an active or inactive license by - CORRECT ANSWER ✔✔August 31 of the renewal year. The Alabama Real Estate Commission comprises - CORRECT ANSWER ✔✔nine members appointed by the governor. Which of the following is a lawful activity for an unlicensed assistant to conduct in the state of Alabama? - CORRECT ANSWER ✔✔Receiving, recording, and depositing earnest money The purpose of Alabama's license law is to - CORRECT ANSWER ✔✔protect the public.
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The Alabama Real Estate Commission's authority includes - CORRECT ANSWER ✔✔taking disciplinary action for violations of license law. An active license is held by the - CORRECT ANSWER ✔✔qualifying broker. A broker is experiencing cash flow problems and believes that real estate sales transactions handled by attorneys in connection with trusts, estate settlements, and divorces and without the assistance of a licensed real estate broker infringes on his ability to be profitable. The broker complains to the Commission that attorneys are practicing real estate without a license. The broker will likely - CORRECT ANSWER ✔✔learn that attorneys are exempt from licensing if they are admitted to practice law in Alabama as long as the real estate transaction is solely incident to the practice of law. Attorneys who are involved in the general practice of real estate must obtain a license but are exempt from licensing when handling a real estate transaction in connection with their primary duty of representing a client. If an out-of-state broker also obtains a license in Alabama, but the broker's home-state license is later revoked because of license law violations in that state, the licensee must then - CORRECT ANSWER ✔✔notify the Alabama Real Estate Commission. A hearing may be held
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The term licensee includes - CORRECT ANSWER ✔✔salespersons, brokers, and real estate firms.
