Alabama Real Estate Commission

Salesperson Test Outline 150 Questions

This follows the class outline

Steve McTyeire, Brokerstevemct@gmail.com205-807-5200

• 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?