Alabama Real Estate State Exam Practice Flashcards

Alabama Real Estate State Exam Practice Flashcards Which of the following actions is representative of an agent's due diligence and ethical behavior?A) A buyer client wants to waive an inspection. The agent follows the request without question.B) An agent deposits a buyer client's earnest money check into her personal bank account.C) An agent notices a discrepancy between what the homeowner says and what the property shows, so he ignores it.D) An agent notices a discrepancy between what the homeowner says and what the property shows, so he investigates.

• An agent notices a discrepancy between what the

homeowner says and what the property shows, so he investigates.Which of these people can be helped by Alabama's real estate regulations?A) Dale found a small shed that he wants to buy for his backyard. However, the shed is used, and he's not sure if it's well made.B) Lucy wants to rent an apartment. She found one that looks nice, but she's not sure that the landlord's rules are fair.C) Samantha wants to start a small bakery in her town, which means there's a lot of paperwork she has to do. She's not sure where to go.D) Trent is selling a car, and he's eager to prove to potential buyers that he's taken good care of it.

• Lucy wants to rent an apartment. She found one that

looks nice, but she's not sure that the landlord's rules are fair.One of the following licensee's actions would constitute commingling. Which is it?A) Cynthia deposited her client's earnest money check into the firm's operating account.B) Jenson deposited his client's earnest money check into the firm's trust account.C) Jessica deposited her commission check into her brokerage firm's operating account.D) Sean withdrew funds from the firm's operating funds to pay the firm's office rent.

• Cynthia deposited her client's earnest money check into

the firm's operating account.Which of the following are considered trust funds?A) Cash, checks, and other items of valueB) Cash onlyC) Checks and cash onlyD) General operating funds only

• Cash, checks, and other items of value

You're walking through a property with a new seller client.The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do?A) Believe the homeowner when he says the property is on public sewer, because he'd know best.B) Hire a private investigator to look into it.C) Inquire about the homeowner's claim to ensure the property really is on public sewer.D) Terminate the listing, as the homeowner is obviously not being truthful.

• Inquire about the homeowner's claim to ensure the

property really is on public sewer.

Frances collected an earnest money check from her client, but didn't have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these statements is true?A) Frances is guilty of commingling.B) Frances is guilty of commingling and conversion.C) Frances is guilty of conversion.D) Frances is guilty of fraud.

• Frances is guilty of commingling.

RECAD was designed to do all of the following EXCEPT which of these?A) Define the roles that Alabama licensees can fill when working with consumersB) Explain the kinds of agency relationships that are allowedC) Outline the duties that Alabama licensees owe their clients and customersD) Specify best practices for choosing a real estate agent

• Specify best practices for choosing a real estate agent

Salesperson Phyllis has had a temporary salesperson license for 13 months. She hasn't completed her post-licensing education. Which of the following is true about her situation?A) Phyllis has two months to complete her PLE so she can get an original license.B) Phyllis's broker is responsible for issuing her an original license.C) Phyllis's license has lapsed.D) Phyllis's temporary license automatically converted to an original license after 12 months.

• Phyllis's license has lapsed.

Margot has been engaging in some shady real estate practices, but no one has filed a complaint against her.However, the Alabama commission hears about them.What options does the commission have?A) Find someone who will file a written complaint.B) Launch an investigation without a written complaint.C) Refer the issue to a court of law.D) Wait until someone files a complaint.

• Launch an investigation without a written complaint.

If a candidate is unsure of her eligibility for an Alabama real estate license due to a prior felony conviction or crime involving moral turpitude, what can she do to verify her eligibility?A) File for a Determination of License EligibilityB) File for a Determination of Moral EligibilityC) File for a Waiver of Criminal RecordD) File for a Waiver of Immorality

• File for a Determination of License Eligibility

Kevin is about to submit his broker's license application.Currently, he works for Gadsden Realty and wants to continue there. Assuming he is successful, what happens next?A) He'll have to wait for his broker's license to be issued to continue practicing real estate.B) He'll have to work as an associate broker for at least five more years before he can start his own brokerage.C) He will become

the next qualifying broker for Gadsden Realty.D) His qualifying broker must return his salesperson license to the real estate commission.

• His qualifying broker must return his salesperson license

to the real estate commission.Pablo, a salesperson for Freedom Realty in Montgomery, let his license lapse, and a client claims that his actions cost her money. Pablo and his qualifying broker Justin are looking into the situation, as is the AREC. If the AREC finds that damage has been done, who will be held

responsible?A) Freedom RealtyB) JustinC) Neither Pablo nor JustinD) Pablo

• Justin

Daisy holds a real estate license in Mississippi and is looking to obtain a reciprocal license in Alabama. Which of the following is a requirement she must meet?A) Complete 60 hours of Alabama pre-licensing education.B) Provide a