Alabama Real Estate Commission
Salesperson Test Outline 150 Questions
This follows the class outline
Steve McTyeire, [email protected]
• What federal laws on contacting customers must we obey?
• What is the purpose of the Alabama Real Estate Commission?
• How many members are on the Commission?
• New Commissioners:
• Who appoints?• Who confirms?• How long is term?• Are all Commissioners brokers?
• How many Commission members hold a real estate license?
• How old must Commissioners be to serve?
• Define broker
• Define associate broker
• Define qualifying broker (QB)
• Define Commissioner
• Define Company
• Define Engage
• Why would the Commission hold a license?
• Define licensee
• What is the license period?
• By when must the license be renewed?
• What is the penalty for late renewal?
• By when must continuing education be completed?
• Define Person
• Define Place of Business
• Rural • Within Police Jurisdiction (city)• Any exceptions?
• Where must records be kept?
• How long?
• Define Salesperson
• What are the activities that require a license?
License required if performing for anotherin Alabama:
B BuyA AidR RentN Negotiate
S SellA AuctionL LeaseE Exchange
• What activities are exempt from a license?
License not required:
My attorney has authority, as an apartment manager, to sell time share cemetery lots
• What must you do if you want to:Co-Brokerage with an out of state
broker?
• What are the qualifications for an Alabama Salesperson License?
• What are the qualifications for a broker license?
• QB may serve for more than 1 company if:
• How long is a license period?
• How much is a salesperson’s renewal?
• How many hours of CE are required each license period?
• What do the hours include?
• Is there an exam in a CE class?
• Does your CE need to be up to date to:
• Renew a license? • Re-activate a license?
• How many hours is the post license course?
• How long do you have after taking the state test to complete post license?
• What if you forget to take the post license within 6 months?
• How much is the temporary license?
• Explain how the expiration date of a temporary license is determined?
• If you don’t complete the post license course within 1 year of passing the state test, what will happen?
• What is the fee to transfer a license?
• What must be done to transfer your license to another broker?
• Why would a license be inactive?
• Must you complete CE if inactive?
• How long can you stay inactive?
• If you want to re-activate, what must be done?
• Each company and branch office must have:
• 1
• 2
• To be issued a broker license, an applicant must:
• 1• 2• 3• 4
• To be the qualifying broker, an broker must:
• 1• 2• 3
• What are the responsibilities of the QB?
• 1• 2• 3
• QB may terminate status by:
• 1• 2
• QB may terminate agent by:
• 1• 2• 3
• How may a QB serve more than 1 company?
• 1• 2• 3
• What happens if the QB dies or becomes disabled?
• How can the company continue after death of broker?
• What is an associate broker status?
• Who may operate a real estate brokerage from home?
• How can this be done?
• What is the purpose of the Recovery Fund?
• How much will you pay into the Recovery Fund when you get an original license?
• What will happen if the Recovery fund drops below $500,000?
• How is the Recovery Fund funded?
• Does an Alabama salesperson pay into the Recovery fund when they get a broker license?
• Why would the Recovery Fund pay out?
• How much will the Recovery Fund pay due to one transaction?
• How much will the Recovery Fund pay due to one licensee?
• What will happen to the licensee’s license when the Fund pays?
• What will happen if someone calls the AREC and tells them you did something they don’t think is right?
• What is the AREC looking for in a complaint?
• 1 • 2
• What does a complaint include?
• 1• 2• 3• 4• 5
• If probable cause is found, what happens?
• Days to Hearing?• Days to Decision?• Days to Appeal?
• What class violation is a real estate infraction?
• What are the penalties?
• Minimum?
• Maximum?
• Jail time?
• If you don’t like the AREC decision, what can you do?
• Does a rehearing change the effective date of a Commission order?
• If you want to appeal, what do you do?
• Who pays the cost of an appeal?
• Trust Funds must be held:
• 1• 2• 3
• Who can hold the trust money?
• When must trust funds be deposited?
• How is trust money disbursed?
• How long do these records need to be held & where?
• What is RECAD
• RECAD Definitions:
– Agency Agreement
• RECAD Definitions:
– Consumer
• RECAD Definitions:
– Client
• RECAD Definitions:
– Customer
• RECAD Definitions
• Dual Agency:
• 1• 2
• RECAD Definitions:
– Informed Consent
• RECAD Definitions
– Material Fact
• RECAD Definitions:
• Can agency be implied?
• How does fraud apply to implied agency?
• Define
– Transaction Broker
• Define
– Single Agent
• Define
– Dual Agent
• Define
– Sub Agent
• What are the RECAD duties to all:
• 1• 2• 3• 4• 5• 6
• What are the RECAD duties to Clients:
• All of the “duties to all” OLD+ Plus
123
• Who must sign the RECAD?
• Is there anything else that goes with the RECAD from?
• What is RECAD office policy?
• What services are exempt under RECAD?
• 1• 2
• Violations
• How does the AREC feel about:
– Misrepresentation?
– Dishonest Dealings?
• Will the AREC allow you to operate in a “gray area” by selling and buying property in your family members (spouse, child or parent) names to avoid real estate laws?
• What will the Commission likely do if you don’t tell the truth on your application?
• Do you need to disclose the fact that you have an interest in the property you are selling?
• When must you disclose your personal interest?
• Why is it important to disclose health and safety issues?
• Will you get in trouble for not disclosing something related to this topic?
• Do you have a duty to discover these defects?
• If you induce a party to break a contract to substitute one where you gain,
• will you have some explaining to do?
• Advertising:– What are the 3 rules
• 1• 2• 3
• Do Alabama’s RE laws apply to Internet advertising?
• Rule change on advertising letter size
• New law• Brokerage name must be prominent on ad
• Old Law did say broker name must be as big or bigger than agent’s
What does a listing agreement must have?
• Can we have an automatic renewal on a listing?
• What is a “net listing”
• Are they legal in Alabama?
• Disclosure:
• What are the forms to use for disclosure?
• Disclosure
– What is a latent defect?
• Disclosure:
– Do you need to disclose latent defects?
• Disclosure:
– Do you need to discover latent defects?
• What are some health & safety issues?
• What is the date to use for:– Lead Based Paint (LBP) disclosure?
• Who must sign the – Lead Based Paint form? (LBP)
• What is the fine for not getting the LBP?
• Do you need to give a consumer anything along with the LBP form?
• When do you prepare a net sheet?
• If you own the property you are selling, do you need to disclose this?
• When?
• Must you tell the buyer looking at your listing that there was a murder in the home?
• Would you need to tell them about the Radon gas you know is seeping through the floor?
• What does “caveat emptor” mean?
• How does “caveat emptor” help the seller?
• Agents do not have full immunity under “caveat emptor”
What are the exceptions:
1234
• Why is the disclosure box in a contract?
• How long must you keep records?
• What kind of rebates can you accept?
• RESPA federal law also levels the field by allowing buyers to do what?
• What is an affiliated business arrangement?
• Who is the only one allowed to pay agents?
• What is the fine for presenting a bad check to AREC?
• If you are arrested, or have a civil case filed against you for involving a real estate transaction, when must you inform AREC?
• When the case is settled, how long do you have to let AREC know?
• Can you conduct a lottery for free lots to influence purchasers?
• Documents
• How soon must you get copies to the parties?
• Documents
• How long must these records be kept?
• If you have someone’s documents or papers and won’t give them back, what will the AREC do?
• If you get a written offer, what must you do?
• Finally, is it illegal to violate any provision or rule of AREC?