Free Alabama Real Estate Salesperson Practice Exam 2025

Working under more than one broker simultaneously without formal transfer and Commission approval is an unauthorized and unlawful act.

The AREC can impose severe penalties for fraud, including license revocation, civil fines, and reporting to criminal authorities.

Failure to maintain required records is a regulatory violation that may result in fines, license suspension, or mandatory education by the Commission.

Making unverified statements is considered misrepresentation. This can result in disciplinary action or civil liability if the client is harmed.

Both the qualifying broker and the licensee have a duty to provide, explain, and obtain signatures for the RECAD disclosure at the appropriate time.

The RECAD disclosure must be given at the first substantial contact with a consumer, before confidential information is exchanged.

Earnest money must be deposited by the next banking day after acceptance of the contract to prevent misuse and ensure fiduciary handling.

The qualifying broker is ultimately responsible for ensuring clients receive an estimated closing statement in compliance with state and federal law.

Licensees have the right to due process, including a hearing before the Commission to present their case and respond to the complaint.

The disciplinary process begins with an investigation. If a violation is likely, AREC issues a formal complaint and notifies the licensee in writing.

To maintain active licensure, real estate professionals must complete 15 hours of continuing education every two years and renew their license on time.

The Alabama Real Estate Commission exists to protect the public through regulation of the real estate industry, including licensing, education, and enforcement.

Applicants have 90 days from the date of passing the state exam to submit an application for a temporary license, whether active or inactive.

As of current guidelines, the application fee for a Temporary License in Alabama is $150, which covers processing and license issuance.

Each signed RECAD form must be retained in the broker’s files for a minimum of three years to comply with documentation and audit requirements.

Yes, licensees may not receive any form of compensation, rebate, or fee from anyone other than their qualifying broker, unless fully disclosed and legally permitted.

Qualifying brokers are legally required to retain all real estate transaction and trust account records for at least three years at the principal place of business.

The Recovery Fund protects consumers by reimbursing victims of fraud, misrepresentation, or dishonest acts committed by licensed real estate professionals.

If the Recovery Fund drops below $500,000, the Commission may impose a one-time assessment fee of $30 on each licensee to restore the fund’s balance.

The standard fee for transferring a salesperson’s license to a new qualifying broker in Alabama is $25, and the proper form must be submitted to the AREC.

A qualifying broker may supervise more than one office only with prior written approval from the Alabama Real Estate Commission. Otherwise, a separate broker is needed for each branch.

Actions such as misrepresentation, unauthorized practice, and failure to provide disclosures are violations. However, acts done with proper disclosure or client consent are not considered violations.

Any incentives that violate advertising regulations or fail to be disclosed can constitute a license law violation. In Alabama, failure to report criminal convictions within 10 days is also a violation.

If the investigation reveals evidence of a violation, the AREC will issue a formal complaint and notify both the licensee and qualifying broker in writing, initiating the disciplinary process.

Temporary licensees in Alabama must complete the required 30-hour post-license course within six months of licensure. Failure to do so results in the license lapsing and requiring reinstatement.

Only brokers may legally hold earnest money in trust accounts, ensuring fiduciary responsibility is upheld.

To file a claim with the Alabama Recovery Fund, licensees must provide written notice and documentation of the offense.

Agents must provide estimated closing statements when requested. Refusing is a breach of duty under Alabama real estate law.

In Alabama, the minimum earnest money deposit is negotiable between the buyer and seller, but 10% is a common minimum figure used in many transactions.

Dual agency is a clear violation if not properly disclosed, as it compromises the fiduciary duty owed to each client.

The Alabama Real Estate Commission (AREC) requires individuals whose license was revoked to wait at least one year before reapplying. This policy ensures proper evaluation and accountability.

Failing to complete continuing education or violating license law can lead to license revocation by the commission.

Licensees must disclose their license status when they are a principal in a transaction to avoid misleading others.

All advertising must clearly identify the broker to ensure transparency and compliance with license law.

A licensee may not accept compensation from anyone except their qualifying broker to avoid conflicts of interest.

A salesperson cannot operate independently and must always work under the supervision of a qualifying broker.

A licensee must complete 15 hours of continuing education every renewal cycle to maintain an active license.

Earnest money should be placed in a trust account promptly and not commingled with personal funds.

Real estate contracts must be in writing to be enforceable under the Statute of Frauds.

A broker is responsible for supervising their affiliated licensees to ensure compliance with license law.

The AREC may fine licensees for violations, revoke or suspend licenses, and require additional education as corrective action.

In Alabama, licensees are required to notify the commission in writing within 10 days of any criminal conviction.

All advertising must be done in the broker's name to prevent misrepresentation and ensure accountability.

Buyers and sellers must receive copies of closing statements as per RESPA and state law requirements.

Only brokers may legally hold earnest money in trust accounts, ensuring fiduciary responsibility is upheld.

To file a claim with the Alabama Recovery Fund, licensees must provide written notice and documentation of the offense.

Agents must provide estimated closing statements when requested. Refusing is a breach of duty under Alabama real estate law.

In Alabama, the minimum earnest money deposit is negotiable between the buyer and seller, but 10% is a common minimum figure used in many transactions.

Dual agency is a clear violation if not properly disclosed, as it compromises the fiduciary duty owed to each client.

The Alabama Real Estate Commission (AREC) requires individuals whose license was revoked to wait at least one year before reapplying. This policy ensures proper evaluation and accountability.