MARK YARBROUGH PRACTICE EXAM Flashcards

MARK YARBROUGH PRACTICE EXAM Flashcards Which of the following are considered trust funds?Cash, checks, and other items of value LuAnn is selling some property, and she wants broker Richard to represent her. He explains that she needs to sign a brokerage agreement, and she asks, "What does it mean when I sign this?" What's the best answer Richard can give?"It means that you understand and accept the conditions of our agency relationship." Broker Joseph tells his client that a property is zoned as residential even though he knows it's zoned as commercial.This violation is an example of ______.Making a substantial and willful misrepresentation AREC commission members Dale, Sherry, Jasmine, and Ted have convened to impose a penalty on a broker who's been found guilty of fraud. Which of these reasons could prevent them from doing this work?The fact that only four members have convened, and there need to be at least five.After passing the real estate exam, applicants must send their application for licensure to the commission within _____ days.90 days Which entity administers and enforces Alabama's residential and commercial laws for activities that require a license?Alabama Real Estate Commission Which of the following is NOT required in Alabama purchase contracts?The names of all involved agents' managing brokers Dean was very motivated to sell his house and was excited when he got an offer. When he realized the buyer couldn't qualify for the purchase price, he decided to accept a second mortgage without mentioning it to his lender and reduce the sales price accordingly. Which type of mortgage fraud scheme is this an example of?Silent second Seller Trevor calls licensee Nate. "My current agent isn't doing anything to sell my house," Trevor says, "and I need to get it sold! I saw your billboard, and I'm wondering if you can represent me." What should Nate do?Nate should tell Trevor that he's happy to be his agent, but he'll have to wait until his current agency contract has ended.Which of the following is an Alabama broker's responsibility regarding trust funds?Maintain records of all funds belonging to others for three years.Which of these is a broker's responsibility under RECAD?To provide all licensees with a copy of the agency disclosure office policy A real estate license is required ______. When performing real estate activities for others, for compensation of any kind 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?Inquire about the homeowner's claim to ensure the property really is on public sewer.Which area of real estate law covers the requirements of a licensee when performing real estate activities within the

state, including continuing education requirements, supervisory requirements, and prohibited conduct?Real estate license law

Which one of the following scenarios describes an adverse condition that would need to be disclosed?A hailstorm damaged some shingles last year.Which of the following terms describes a situation in which a broker mixes trust funds with the broker's own money?Commingling Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property?Dora doesn't use the back door because the steps leading to the yard are rotted.Which of the following is a reason why the Alabama Real Estate Commission might impose a disciplinary penalty against you?You make false and dishonest promises to clients or customer Bob wants to reinstate his license. Which license status must he have to ask the commission to reinstate?expired Licensee Randy has a written listing agreement with Brent, a seller. The buyer is Tim. Who is Randy's client?brent is her client Which area of real estate law covers the rights of ownership and tenancy, and the government's rights and authority under eminent domain?general property law Walt has been through a hearing, an appeal, and a rehearing. The court has just handed down its judgment and has upheld the commission's decision. What can Walt expect now?He will need to pay the court costs.Agent Walt has met with Diane, a seller, three times. The first time, she told him she wanted him to help her sell her house. The second time, at the open house, Diane told him, "Honestly, I want to list this place for $400,000, but I'd be open to offers as low as $315,000." The third time, Walt presented three offers to Diane. When should he have presented her with the Real Estate Brokerage Services Disclosure form?At their first meeting, after Diane asked him for representation.What is the difference between the process of renewing a salesperson's license and renewing a broker's license?Nothing. The process is the same for both kinds of license.Which of the following is true about disciplinary actions in Alabama?A suspended license can be reinstated once the licensee has completed certain actions.In Alabama, hearings are typically held in which county?montgomery Broker Tanner and buyer Sarah are working together to look for a house for her. They don't have a written brokerage agreement. What's their brokerage relationship?Tanner is acting as a transaction broker.Licensee Stephanie tells Betty and George, her buyer

clients: "Since you want to get $300,000 for your house,

let's list it at that price for three months. If it sells, I'll keep anything above that amount as my commission. How does that sound?" Has Stephanie violated license law?Yes, because this is a net listing, which is illegal in Alabama.Licensee Flip tried to compel the Browns to accept the buyer's offer, saying that he knew a better offer wouldn't come along. What's Flip's mistake?He violated Alabama license law.