Alabama Real Estate Principles Unit 24 Flashcards

Alabama Real Estate Principles Unit 24 Flashcards Two real estate firms agree they will not bid against each other when attending foreclosure auctions on behalf of their respective clients. What laws have been violated?The answer is antitrust laws. Bid-rigging is a collusive and anticompetitive behavior that violates both state and federal antitrust laws.A salesperson is low on funds for promoting her business and has found that if she leaves yard signs up for an extra couple of weeks after a listing expires, she can generate a few extra calls and occasionally interest the caller in other properties. The salesperson should remove the sign upon expiration of a listing unless she has the property owner's permission to leave the sign up.A real estate brokerage has three divisions with a different qualifying broker for each division. One division sells condos, another manages vacation rentals, and a third is simply a referral company. A salesperson wants to be licensed under the condo sales and the condo rental company so he can learn both businesses. Is this possible?No, he is allowed to be licensed under only one broker.What is the difference between a trust account and an escrow account?The answer is there is no difference. The terms trust account and escrow account are used interchangeably.An Alabama broker is holding an earnest money deposit. If the sales contract does not close and the parties dispute whether the earnest money should be refunded or not, the broker should interplead the funds into court.In Alabama, a person planning to open a real estate office must hold a qualifying broker's license or hire a qualifying broker.A qualifying broker opens a real estate office under his own name as a sole proprietorship. How many licenses are required?The answer is two. Every Alabama real estate firm must be properly licensed. All qualifying brokers must be licensed under a real estate firm, even if the firm is a sole proprietorship owned by the qualifying broker.With regard to Megan's Law, real estate agents in Alabama must disclose the location of registered sex offenders to none of these; Alabama does not require agents to discover or disclose the location of sex offenders.In order to earn some extra money for her clients, a broker establishes a trust account with an FDIC-insured bank in Alabama and then monthly "sweeps" anything over $10,000 into a money market account that earns 3% interest. Is this allowed?No, because trust funds cannot be deposited in money market accounts A salesperson finds a buyer for a home he has listed. The buyer gives the salesperson an earnest money cashier's check for $2,000. According to Alabama regulations, what should the salesperson do with the check?Immediately give it to the broker What amount of personal funds may an Alabama broker keep in a trust account?Up to $1,000 A yard sign displays the salesperson's name in 8-inch letters, the company name in 7-inch letters, and a phone

number in 9-inch letters. Is this allowed?The answer is yes, as long as the company name can be considered "prominent." Any advertising by a licensee must

display the name or trade name of the real estate company or the qualifying broker. There is no size or proportion requirement, only that the name be "prominent." Alabama's version of fair housing lawThe answer is essentially mirrors the federal fair housing laws. The Alabama Fair Housing Law is found in the Code of Alabama, 1975, Title 24, Chapter 8. It is virtually identical to the federal fair housing laws.A branch office must have aqualifying broker's license and a branch office license.In order to create maximum impact and "buzz," a real estate agent puts out yard signs that simply say For Sale and also contain a very large QR code. Is this a good strategy?No, this is a blind ad and is illegal.A licensed salesperson is a member of a team within a brokerage. Her team wishes to place advertising to let people know about their special expertise in a particular part of town. What must they include in the advertising?The team name, the name of the qualifying broker or company, and the name of any team member A qualified broker may represent more than one company at the same location, but only if the broker The answer is obtains a separate broker's license for each company. Brokers must hold a separate license for each firm they represent as a broker.Which of the following is a protected class under the Alabama Fair Housing Law?A)Source of incomeB)Dietary restrictionC)Marital statusD)Familial status The answer is familial status. Familial status is a protected class under the Alabama Fair Housing Law.Real estate firm A represents the seller in a transaction, and real estate firm B represents the buyer. The contract calls for $3,000 in earnest money. Which firm must hold the earnest money?The answer is either firm, as specified in the contract.Funds to be held in trust under a contract for sale involving co-brokerage with more than one qualifying broker may be held and deposited by either qualifying broker.Anyone who feels that their rights under fair housing laws have been violated may file a complaint with the U.S. Department of Housing and Urban Development.A broker wants to place a For Sale sign on some vacant property in order to receive calls from prospects. The broker must first receive permission from the owner.