Alabama Real Estate Commission Salesperson Test Outline 150 Questions This follows the class outline Steve McTyeire, Broker

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 another in Alabama: B Buy A Aid R Rent N Negotiate S Sell A Auction L Lease E 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:

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?

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:

What are the RECAD duties to Clients: All of the “duties to all” OLD + Plus 1 2 3

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:

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?