Free alabama laws, rules, and regulations examinations Practice Questions

Sample Practice Questions

Try these 10 sample questions from the alabama laws, rules, and regulations examinations practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An unlicensed Alabama brokerage assistant performs only clerical work but then personally shows a listed home to a buyer. Which conclusion follows?

   1. A. The assistant remains exempt because the showing was unpaid
   2. B. The assistant remains exempt if the broker is present
   3. C. The showing falls outside the clerical-worker exemption
   4. D. The showing is exempt if no offer is discussed

   Answer: C

   Explanation: The exemption covers persons performing clerical or administrative duties only so long as the person "does not physically show listed property." Personally showing the home defeats that exemption.

   Reference: Act 2025 380 Hb 382 Enrolled — Act 2025-380, §34-27-2(b)(6), p. 4

2. 2A broker wants to change companies while renewing a license. May the transfer be completed merely by noting it on the renewal form?

   1. A. Yes, every renewal form also effects transfers
   2. B. Yes, if both brokers sign the form
   3. C. No, changes constituting a transfer require established transfer procedures
   4. D. No, transfers are allowed only after renewal closes

   Answer: C

   Explanation: The renewal rule says, "Only the renewal of a license shall be affected with a renewal form. Any changes constituting a transfer must be submitted in accordance with established transfer procedures."

   Reference: Admin 790 X 2 — Rule 790-X-2-.16(2), p. 2-10

3. 3A qualifying broker changes the company's business address. What must accompany the written notice to the Commission?

   1. A. A $25 transfer fee only for the qualifying broker
   2. B. A $25 transfer fee for the company or branch and for each license issued there
   3. C. A $50 fee for the company regardless of license count
   4. D. No fee if the address remains in Alabama

   Answer: B

   Explanation: The qualifying broker must submit notice "with a $25.00 transfer fee for the company or branch license and for each license issued to that company or branch."

   Reference: Admin 790 X 3 — Rule 790-X-3-.01, p. 3-1

4. 4When applying for an original Alabama broker license, what additional amount is paid into the Recovery Fund?

   1. A. $15
   2. B. $25
   3. C. $30
   4. D. $50

   Answer: C

   Explanation: Section 34-27-31 requires an original broker or salesperson applicant to pay "a fee of thirty dollars ($30) for deposit in the Recovery Fund."

   Reference: Creator: Adobe Acrobat Pro (64-bit) 23.3.20244 — Appendix, Code of Alabama §34-27-31(c)(1), p. 46

5. 5On what bases may the Alabama Real Estate Commission begin investigating a licensee's actions and records?

   1. A. Only after a court judgment
   2. B. On its own or on a verified written complaint
   3. C. Only after a consumer obtains counsel
   4. D. Only on an anonymous oral complaint

   Answer: B

   Explanation: The Commission or its staff may act "on its own, or on the verified complaint in writing of any person" to investigate.

   Reference: Act 2025 380 Hb 382 Enrolled — Act 2025-380, §34-27-36(a)(1), pp. 8-9

6. 6A licensee presents a written counteroffer in a single-family residential sale. What must the licensee furnish at that time?

   1. A. A complete estimated closing statement
   2. B. A final title policy
   3. C. A lender's underwriting decision
   4. D. A property-tax reassessment

   Answer: A

   Explanation: The licensee "must furnish ... a complete estimated closing statement each time" the licensee presents or prepares a written offer or counteroffer.

   Reference: Admin 790 X 3 — Rule 790-X-3-.04(1), p. 3-5

7. 7Where must an Alabama qualifying broker keep money held for others?

   1. A. In the company's operating account at any bank
   2. B. In a separate federally insured account at a financial institution in Alabama
   3. C. In the broker's personal savings account
   4. D. In an uninsured account selected by the client

   Answer: B

   Explanation: Rule 790-X-3-.03 requires funds held for others to remain "in a separate federally insured account or accounts in a financial institution located in Alabama."

   Reference: Admin 790 X 3 — Rule 790-X-3-.03(1), p. 3-2

8. 8A licensee decides to replace the Commission's Real Estate Brokerage Services Disclosure form with a homemade summary. Is that acceptable?

   1. A. Yes, if the summary is shorter
   2. B. Yes, if the consumer signs it
   3. C. No, use of the Commission form is mandatory
   4. D. No, because no disclosure form may be used

   Answer: C

   Explanation: Rule 790-X-3-.13 states, "The use of this form is mandatory as required by RECAD and this rule." A homemade substitute does not satisfy the mandate.

   Reference: Admin 790 X 3 — Rule 790-X-3-.13(1), p. 3-9

9. 9An Alabama broker sells property owned by the broker's spouse and knowingly lies about the property's rental income. Can the conduct support discipline?

   1. A. Yes, dishonest acts involving the spouse's property are prohibited
   2. B. Yes, but only if the broker was the listing broker
   3. C. No, family-owned property is always outside disciplinary authority
   4. D. No, because rental income is not a property fact

   Answer: A

   Explanation: The prohibition covers "fraudulent acts when selling, buying, trading, or renting real" property owned by the licensee or specified family members. The spouse-owned sale is covered.

   Reference: Act 2025 380 Hb 382 Enrolled — Act 2025-380, §34-27-36(b)(2), p. 10

10. 10An Alabama owner negotiates the sale of her own home without compensation from anyone else. Which licensing rule applies?

    1. A. She is exempt when handling her own real estate
    2. B. She needs a salesperson license
    3. C. She needs a broker license
    4. D. She is exempt only after filing with the Commission

    Answer: A

    Explanation: Alabama exempts "Any owner in the managing of, or in consummating a real estate transaction involving, his or her own real estate." The owner therefore need not obtain a license for this sale.

    Reference: Act 2025 380 Hb 382 Enrolled — Act 2025-380, §34-27-2(b)(1), p. 4