Alabama Real Estate Exam
1,484+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 13 topics on the Alabama real estate salesperson exam.
Alabama License Law
176 questions- Which state agency regulates real estate licenses in Alabama?
- How many hours of pre-license education are required to sit for the Alabama real estate salesperson exam?
- Under Alabama law, a real estate salesperson license must be held under:
- In Alabama, what is the license renewal period for real estate licensees?
- How many hours of continuing education must Alabama licensees complete per renewal period?
- Which of the following activities requires a real estate license in Alabama?
- In Alabama, the qualifying broker of a real estate company is responsible for:
- What happens to an Alabama salesperson's license if their qualifying broker's license is revoked?
- Under Alabama license law, which of the following is grounds for license revocation?
- Alabama law requires that a company's real estate trust account be maintained:
- What is the minimum age requirement to obtain a real estate salesperson license in Alabama?
- In Alabama, an inactive licensee may:
- Which of the following does NOT require a real estate license in Alabama?
- AREC has the authority to do which of the following?
- A real estate licensee in Alabama who operates as an independent contractor still must:
- In Alabama, which of the following must be included in all real estate advertising?
- When must an Alabama real estate licensee disclose their license status to a party in a transaction?
- The Alabama Real Estate Commission consists of how many members?
- A salesperson in Alabama receives an earnest money deposit. What must they do with it?
- Under Alabama law, commingling means:
- In Alabama, a real estate licensee who pays or receives a referral fee must ensure:
- An Alabama real estate licensee wants to advertise on social media. Which rule applies?
- The Alabama Real Estate Recovery Fund compensates:
- In Alabama, a broker who wants to open a branch office must:
- How long must Alabama real estate brokers retain transaction records?
- In Alabama, can a real estate salesperson pay a referral fee directly to another salesperson?
- An Alabama licensee who is convicted of a felony must notify AREC within:
- A consumer files a complaint against an Alabama licensee with AREC. The Commission:
- Which of the following is an example of a material fact that must be disclosed in Alabama real estate transactions?
- Under Alabama law, a real estate license may be issued to which of the following business entities?
- What happens if an Alabama real estate license expires and the licensee continues to practice?
- In Alabama, which of the following is considered the practice of real estate?
- Under the Alabama Real Estate License Law, which of the following actions requires a real estate license?
- The Alabama Real Estate Commission can suspend or revoke a license for all of the following EXCEPT:
- In Alabama, a principal broker who willfully violates license law may be subject to:
- When a licensee's broker license is revoked, what happens to the salesperson licenses affiliated with that broker?
- Alabama requires that all real estate advertisements include:
- When must an Alabama licensee provide agency disclosure to a prospective buyer?
- The Alabama Real Estate Recovery Fund provides compensation to:
- To qualify for a broker's license in Alabama, a licensee must have:
- In Alabama, unlicensed assistants working for a real estate broker may legally:
- An Alabama licensee who moves to a new broker must:
- In Alabama, a real estate license expires:
- Alabama requires how many hours of continuing education for license renewal?
- A 'pocket listing' where a broker markets a property only to select clients without entering it in the MLS may be problematic because:
- In Alabama, a broker's trust account records must be maintained for a minimum of:
- When an Alabama licensee receives an offer on a listed property, the licensee is obligated to:
- Under Alabama license law, which of the following best describes a 'principal broker'?
- In Alabama, how many hours of pre-license education must an applicant complete before becoming a broker?
- What is the minimum number of years of active salesperson experience required before applying for an Alabama broker license?
- Under AREC rules, within how many days must a salesperson notify AREC after terminating association with a qualifying broker?
- An Alabama real estate license that has been placed on inactive status allows the licensee to:
- Which of the following is NOT a ground for license revocation by AREC in Alabama?
- In Alabama, a real estate company name must be approved by:
- Which entity has the authority to investigate complaints against Alabama real estate licensees?
- An Alabama real estate license applicant must be at least how old?
- What is the Alabama Real Estate Recovery Fund used for?
- Under Alabama law, a licensee who has had their license revoked due to a Recovery Fund claim may have their license reinstated only after:
- Which of the following individuals is EXEMPT from needing an Alabama real estate license?
- An unlicensed person who performs real estate brokerage activities in Alabama for compensation is subject to:
- When must an Alabama real estate licensee disclose their license status when purchasing property for themselves?
- In Alabama, a real estate license may be issued to a(n):
- If an Alabama licensee moves to a new state but wishes to maintain their Alabama license, they must:
- An Alabama salesperson licensee who completes the required 30 hours of post-license education must do so within how long of obtaining their initial license?
- AREC is composed of how many members?
- Which of the following statements about license reciprocity in Alabama is TRUE?
- An Alabama licensee who is found guilty of fraud in a real estate transaction may be subject to which penalties from AREC?
- A real estate salesperson's license in Alabama is automatically terminated if:
- Under Alabama law, a broker may operate a real estate office only if:
- AREC requires that real estate advertisements in Alabama include:
- An Alabama licensee's obligation to keep their contact information updated with AREC is primarily because:
- What is the maximum dollar amount that can be paid from the Alabama Real Estate Recovery Fund for a single transaction?
- An Alabama real estate salesperson who wishes to become a broker must have how many years of active salesperson experience?
- What is the maximum fine AREC may impose on a licensee for a single violation?
- An Alabama licensee who changes their place of business must notify AREC within:
- When an Alabama salesperson's license is suspended, the employing broker must:
- Alabama real estate licenses expire:
- A salesperson in Alabama may receive compensation for real estate services from:
- If an Alabama real estate broker dies, what happens to the salespersons employed by that broker?
- Which of the following is NOT a ground for license revocation or suspension by AREC?
- How many members serve on the Alabama Real Estate Commission?
- A licensee in Alabama who wishes to place their license on inactive status must:
- Continuing education for active Alabama licensees must total how many hours per two-year license cycle?
- Which of the following must an Alabama broker maintain at their principal place of business?
- If an Alabama real estate license is not renewed by its expiration date, it becomes:
- A real estate salesperson who operates without an employing broker in Alabama is:
- Under Alabama law, which of the following is required for an AREC disciplinary hearing?
- An individual who negotiates leases of commercial properties for others for compensation in Alabama must have:
- Under AREC rules, advertising by a licensee must include:
- The Alabama Real Estate Recovery Fund provides compensation to members of the public who have suffered losses due to:
- An Alabama real estate broker who wishes to open a branch office must:
- Under AREC rules, a licensee's for-sale sign on a property must include:
- In Alabama, a licensee convicted of a felony is required to:
- The post-license education requirement for a new Alabama salesperson is:
- A person practicing real estate without a license in Alabama may be subject to:
- What is the primary purpose of requiring continuing education for Alabama licensees?
- A salesperson in Alabama may operate a real estate business under their own name without broker supervision:
- An Alabama broker who represents both the buyer and seller in the same transaction with written consent of both parties is acting as a:
- The Alabama Real Estate Commission has how many licensed commissioners appointed by the Governor?
- AREC's jurisdiction over licensees includes:
- An Alabama licensee who has their license revoked must wait how long before reapplying?
- Which of the following is TRUE about Alabama's Real Estate Recovery Fund?
- Under Alabama law, the term 'associate broker' refers to:
- A broker who allows an unlicensed person to negotiate real estate transactions in Alabama is:
- Before receiving compensation for the sale of real estate, an Alabama salesperson must verify that:
- Which of the following statements about AREC rules on team names is correct?
- An Alabama real estate broker must keep a copy of every listing and purchase contract for a minimum of:
- If an Alabama licensee is found to have made a false statement on their license application, AREC may:
- A person who is a licensed attorney in Alabama providing real estate legal services to a client is:
- Under Alabama law, what must a licensee do before advertising a listed property on social media?
- An Alabama licensee who knowingly engages in discriminatory housing practices may face discipline from:
- A licensee in Alabama may only pay a referral fee to:
- When must an Alabama broker provide a written agency disclosure to a prospective client?
- An Alabama broker who receives a complaint from a consumer must respond to AREC's investigation:
- An Alabama real estate licensee who changes from one brokerage to another must:
- The Alabama License Law requires that all real estate transactions be conducted:
- A salesperson who collects a commission directly from a buyer, bypassing their broker, has:
- Which of the following actions by an Alabama licensee would NOT be considered a violation of the License Law?
- AREC's authority to regulate Alabama real estate licensees is granted by:
- In Alabama, which of the following statements about license law education requirements is correct?
- Under AREC regulations, a real estate licensee must disclose their licensed status when:
- A real estate broker in Alabama is required to maintain professional liability (errors and omissions) insurance:
- AREC's Real Estate Recovery Fund requires that any person who files a claim must first:
- An Alabama broker who knowingly employs an unlicensed person to perform activities requiring a license may have their license:
- Under Alabama license law, a broker's 'place of business' requirement means the broker must maintain:
- Which of the following is a permissible referral arrangement under Alabama license law?
- AREC requires that all licensees affiliated with a broker maintain their license:
- If an Alabama licensee's license is on inactive status, they may:
- The Alabama Real Estate License Law applies to which of the following persons?
- Under what circumstance can an Alabama real estate license be transferred between brokerages same-day?
- Under AREC regulations, the term 'active license' means the licensee is:
- An Alabama broker must notify AREC within 30 days of which of the following events?
- A listing broker is reviewing an offer that is clearly below market value. The broker should:
- In Alabama, which of the following acts does NOT require a real estate license?
- An Alabama licensee who provides false information in an AREC investigation is subject to:
- The prelicense education hours required for an Alabama real estate broker's license (for those upgrading from salesperson) include:
- AREC may revoke an Alabama real estate license without a formal hearing if:
- Alabama's license law provisions that protect consumers from dishonest licensee conduct include which remedy?
- Which of the following best describes the concept of 'reasonable supervision' required of Alabama brokers?
- Under Alabama law, a broker who operates a real estate brokerage as a corporation must ensure that:
- Under AREC rules, the term 'principal broker' refers to:
- An Alabama real estate licensee who receives a gift card from a client as a thank-you for helping them purchase a home:
- AREC's authority to discipline licensees includes which of the following actions?
- Which of the following must an applicant for an Alabama real estate salesperson license provide?
- An Alabama licensee may hold a real estate license in another state while also holding an Alabama license, provided:
- Under AREC rules, which of the following disclosures must be made in writing to a buyer at the earliest practical opportunity?
- Which of the following is required for an Alabama real estate license to remain active during the license renewal period?
- An Alabama broker's license may be suspended for which of the following?
- In Alabama, the license of a salesperson who leaves their employing broker without affiliating with a new broker becomes:
- Under Alabama law, real estate commissions are determined by:
- A 'designated broker' in Alabama is the licensed broker who:
- When AREC receives a written complaint against a licensee, the standard procedure is to:
- An Alabama real estate broker who advertises their own property for sale must include in the advertisement:
- An Alabama licensee who obtains a listing through misrepresentation or fraud may have their license:
- In Alabama, a real estate brokerage may be organized as which of the following business entities?
- An Alabama salesperson who transfers from one broker to another must begin working under the new broker:
- AREC's goal in requiring licensees to complete continuing education is primarily to:
- Which of the following AREC disciplinary actions is the most severe?
- Under Alabama license law, a broker's duty to supervise affiliated salespersons means the broker must:
- An Alabama broker can be held liable for the actions of their affiliated salesperson if:
- Under Alabama's license law, which of the following is an example of a prohibited inducement?
- In Alabama, an individual who manages their own properties without a license is:
- What is the primary purpose of Alabama real estate license law?
- An Alabama licensee convicted of a crime involving moral turpitude may have their license:
- Under Alabama law, a broker who becomes mentally incapacitated may have their license:
- An Alabama licensee who wishes to appeal an AREC disciplinary decision may do so through:
- Which of the following is an example of Alabama real estate advertising that would violate AREC rules?
- An Alabama real estate licensee who provides property management services without a property management contract in place:
- Alabama's license law defines 'broker' to include a person who, for compensation:
- Alabama licensees who participate in continuing education must complete which subjects as required core topics?
- If an Alabama licensee is named in a real estate lawsuit filed by a client, the licensee should:
- Under Alabama license law, the relationship between a broker and their independent contractor salesperson means:
- An Alabama licensee who intentionally misrepresents a property's square footage to a buyer may be subject to:
- The AREC exam for salespersons consists of which portions?
- Which of the following best summarizes the purpose of requiring 60 hours of pre-license education, 30 hours of post-license education, and 15 hours of continuing education for Alabama real estate licensees?
- What is the primary purpose of the Alabama Real Estate Commission (AREC)?
Finance
169 questions- In Alabama, what instrument is primarily used to secure a mortgage loan with real property as collateral?
- Alabama's usury laws regulate:
- Under the Alabama Mortgage Brokers Act, individuals who broker mortgage loans must:
- In Alabama, a mortgage that covers more than one property is called a:
- What does the Truth in Lending Act (TILA) require lenders to disclose to Alabama borrowers?
- An Alabama buyer obtains an FHA loan. FHA loans are insured by:
- In Alabama, which type of loan has an interest rate that changes periodically based on a market index?
- A buyer in Alabama assumes the seller's existing mortgage. This means the buyer:
- RESPA (Real Estate Settlement Procedures Act) applies to Alabama transactions involving:
- Which document in an Alabama mortgage transaction is the borrower's personal promise to repay the debt?
- A conventional loan in Alabama is one that is:
- What is the primary purpose of discount points on an Alabama mortgage loan?
- Under Alabama mortgage law, a lender's right to demand full loan repayment if the property is sold is called a(n):
- An Alabama homebuyer's debt-to-income ratio is calculated by dividing:
- Which of the following statements about VA loans is TRUE?
- In Alabama, a deed of trust differs from a mortgage in that:
- Private mortgage insurance (PMI) is typically required in Alabama when the borrower's down payment is less than:
- The secondary mortgage market in Alabama allows lenders to:
- An Alabama buyer qualifies for a $250,000 loan with a monthly payment of $1,500. What is the annual debt service?
- A balloon mortgage in Alabama is characterized by:
- Which federal law prohibits discrimination in lending based on race, color, national origin, religion, sex, familial status, or disability?
- In Alabama, a wraparound mortgage is used when:
- The Alabama Consumer Credit Act regulates:
- In Alabama, a mortgage document in which the borrower retains title to the property while pledging it as collateral is called:
- A conventional loan with a down payment of less than 20% typically requires:
- Under the Truth in Lending Act (TILA), the APR disclosed to a borrower represents:
- An adjustable-rate mortgage (ARM) with a 2/2/5 cap structure means:
- A 'due-on-sale' clause in a mortgage means:
- Under the Real Estate Settlement Procedures Act (RESPA), kickbacks between settlement service providers are:
- An FHA loan requires a minimum down payment of:
- The primary purpose of the Equal Credit Opportunity Act (ECOA) is to:
- A blanket mortgage differs from a regular mortgage in that it:
- Which type of mortgage loan is fully guaranteed against loss by the U.S. Department of Veterans Affairs?
- An FHA loan is insured by:
- What is the primary function of the secondary mortgage market?
- A mortgage that carries a fixed interest rate for the first several years, then adjusts periodically, is called a(n):
- What is the loan-to-value (LTV) ratio on a $200,000 property with a $160,000 mortgage?
- In Alabama, the document that creates a lien on real property as security for a mortgage loan is called a:
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?
- A buyer obtains a $250,000 mortgage at 6% annual interest. What is the first month's interest charge?
- Which of the following BEST describes 'private mortgage insurance' (PMI)?
- A 'balloon mortgage' is characterized by:
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- Which of the following BEST describes an 'assumable mortgage'?
- A 'due-on-sale clause' in a mortgage agreement means:
- Which of the following loan types does NOT require a down payment from eligible borrowers?
- What does 'amortization' mean in the context of a mortgage?
- A 'piggyback loan' (80-10-10 financing) is typically used to:
- Fannie Mae (FNMA) and Freddie Mac (FHLMC) are:
- A mortgage with negative amortization means:
- What does 'points' mean in mortgage lending?
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against applicants based on:
- Which of the following is included in the calculation of a borrower's debt-to-income (DTI) ratio?
- A borrower has a gross monthly income of $5,000 and monthly debt payments of $1,800. What is their back-end debt-to-income ratio?
- What is a 'conforming loan'?
- Which type of loan insures the lender against loss and allows borrowers to purchase with as little as 3.5% down with a 580+ credit score?
- An interest-only loan requires the borrower to:
- A lender requires a home appraisal primarily to:
- Under RESPA, a 'Affiliated Business Arrangement' (AfBA) disclosure must be provided when:
- What is the primary purpose of 'private mortgage insurance' (PMI) from the lender's perspective?
- A home equity line of credit (HELOC) is best described as:
- A reverse mortgage in Alabama is primarily designed for:
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within 3 business days of application?
- A loan in which the interest rate changes periodically based on an index is called a(n):
- A conventional mortgage loan is best described as a loan that is:
- Private Mortgage Insurance (PMI) is typically required when a borrower's down payment is less than:
- A borrower takes out a $200,000 mortgage at 6% annual interest. What is the monthly interest payment in the first month?
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
- In a mortgage, the collateral for the loan is:
- A loan that requires only interest payments during the loan term with the principal due in full at the end is called a(n):
- The secondary mortgage market is best described as:
- A loan-to-value ratio (LTV) of 80% on a $300,000 purchase means the loan amount is:
- A VA loan guarantee benefit is available to:
- The debt-to-income (DTI) ratio compares a borrower's monthly debt payments to their:
- A prepayment penalty in a mortgage loan refers to:
- Points on a mortgage loan are used to:
- Fannie Mae and Freddie Mac are:
- An acceleration clause in a mortgage allows the lender to:
- A reverse mortgage is available to homeowners who are:
- The Real Estate Settlement Procedures Act (RESPA) prohibits:
- A balloon mortgage is characterized by:
- The USDA Rural Development loan program is designed to assist homebuyers in:
- An impound (escrow) account maintained by a mortgage lender holds funds for:
- When interest rates rise, the value of existing fixed-rate mortgage-backed securities generally:
- A home equity line of credit (HELOC) is a form of:
- Which of the following best describes negative amortization?
- The Community Reinvestment Act (CRA) requires banks to:
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
- A borrower's front-end debt-to-income ratio (housing ratio) compares the proposed housing expense to:
- A 'bridge loan' in real estate is used to:
- A construction loan in real estate is typically:
- The loan-to-value ratio is used by lenders to assess:
- A buyer's closing costs that are paid 'in advance' at closing include:
- A borrower takes a $180,000 FHA loan. What is the approximate upfront mortgage insurance premium (UFMIP) at 1.75%?
- The Closing Disclosure must be provided to the borrower how many business days before closing?
- Assumable mortgages allow a buyer to:
- In a mortgage transaction, the mortgagor is:
- An interest rate cap on an ARM loan limits:
- Which of the following would most likely result in a lower mortgage interest rate?
- The note in a real estate mortgage transaction is the:
- An amortized loan is one in which each payment covers:
- The Federal Reserve influences mortgage interest rates primarily through:
- A 'conforming loan' is one that:
- A 'jumbo loan' is a mortgage that:
- In an ARM loan, the index is:
- Seller financing (owner financing) occurs when:
- A land contract (contract for deed) transfers legal title to the buyer:
- Annual Percentage Rate (APR) differs from the stated interest rate because APR:
- A mortgage servicer is responsible for:
- The right of redemption allows a defaulted borrower to reclaim their property by:
- Private mortgage insurance (PMI) on a conventional loan is typically automatically cancelled when the loan balance reaches:
- A 'teaser rate' on an ARM loan refers to:
- What is the purpose of title insurance from a lender's perspective?
- Mortgage fraud is best characterized as:
- A cooperative financing arrangement called a 'piggyback loan' involves:
- Predatory lending practices include:
- An interest rate buydown allows a borrower to:
- The right of a lender to demand immediate full repayment of a mortgage when property is transferred to a new owner is called a(n):
- FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) affected real estate by:
- A lender who charges a fee for processing, originating, and underwriting a mortgage loan is charging a(n):
- Which of the following correctly describes a 'wraparound mortgage'?
- A mortgage that uses both real and personal property as collateral is called a:
- A purchase money mortgage is created when:
- A subordination agreement allows:
- A deficiency judgment occurs when:
- A lender who charges fees or points to increase yield on a below-market-rate loan is charging:
- A lender's underwriting process for a mortgage typically evaluates which of the following 'three C's'?
- The 'right of reinstatement' allows a defaulted borrower in Alabama to:
- Which of the following federal laws created the Consumer Financial Protection Bureau (CFPB) to oversee mortgage lending?
- A hard money loan is characterized by:
- A real estate investor who uses leverage (borrowed money) to purchase property increases their potential:
- In a mortgage, the clause that prevents the borrower from conveying the property without paying off the loan is the:
- Under RESPA, a lender may not require a buyer to purchase title insurance from a specific company affiliated with the lender unless:
- Which of the following is an example of a non-conforming loan?
- A borrower's annual income is $60,000. Their proposed housing expense is $1,500/month. What is the front-end (housing) ratio?
- The phrase 'subject to' in a mortgage context means:
- The note rate on a mortgage is the:
- A growing equity mortgage (GEM) is characterized by:
- A graduated payment mortgage (GPM) has payments that:
- Which of the following is TRUE about FHA mortgage insurance premium (MIP)?
- The margin in an ARM loan is:
- A 'no-closing-cost' loan typically means:
- An alienation clause in a mortgage prevents a buyer from:
- A fixed-rate, fully amortized 30-year mortgage has which of the following characteristics?
- The right of a lender to apply collateral property toward the debt upon default is called the:
- A lender that sells a mortgage on the secondary market but retains the servicing rights is:
- A lender's appraisal of a property for a residential mortgage must be performed by:
- Which of the following best describes 'seller concessions' in a real estate transaction?
- The CFPB regulates mortgage lending through which two key disclosure rules?
- A mortgage loan that is interest-only for the first 10 years and then fully amortizes over the remaining 20 years is called a(n):
- An Alabama real estate agent advising a buyer on financing should know that the maximum conventional loan amount conforming to Fannie Mae and Freddie Mac limits is referred to as the:
- In a purchase transaction in Alabama, the earnest money deposited by the buyer is typically applied at closing toward:
- The debt-to-income ratio used by mortgage lenders typically should not exceed what percentage for conventional loans?
- When a lender requires a buyer to purchase homeowner's insurance as a condition of the loan, the lender is protecting:
- Under TRID, if there is a significant change in the Loan Estimate after it is issued, the lender must:
- A loan officer who guarantees a buyer a specific interest rate for 60 days is offering a:
- Which government agency backs VA loans?
- A borrower who has been pre-approved for a mortgage has had their:
- A second mortgage taken after a first mortgage is recorded has what priority position?
- Mortgage forbearance allows a borrower to:
- A cash-out refinance allows a homeowner to:
- A 'no-doc' or 'stated income' mortgage loan primarily appeals to borrowers who:
- A real estate investor who borrows 70% of a property's value and pays the remaining 30% in cash has used leverage at a(n):
- A short sale occurs when a property sells for:
- The defeasance clause in a mortgage states that when the borrower pays off the loan in full:
- Home equity loans and HELOCs are secured by:
- Under HMDA, lenders are required to report mortgage loan data to:
- A lender who denies a mortgage application must provide the applicant with:
- Which of the following is an example of 'yield maintenance' in a commercial mortgage?
Property Ownership
144 questions- In Alabama, which form of co-ownership includes the right of survivorship?
- Alabama is NOT a community property state. This means property acquired during marriage is typically owned as:
- Which type of deed provides the greatest protection to a buyer in Alabama?
- In Alabama, a homestead exemption reduces the assessed value of a primary residence for property tax purposes. The basic exemption amount is:
- In Alabama, which of the following is classified as real property?
- Tenancy in common in Alabama means co-owners:
- Which government right allows Alabama to take private property for public use with just compensation?
- If an Alabama property owner dies without a will and without heirs, the property passes to:
- An easement appurtenant in Alabama involves:
- A deed restriction in Alabama is an example of a:
- Which of the following is an example of police power in Alabama?
- A life estate in Alabama grants the holder:
- In Alabama, adverse possession requires continuous, open, hostile, and exclusive use of another's property for how many years?
- The bundle of rights in real estate includes the right to:
- In Alabama, which legal description method uses a starting point, directions, and distances to describe a parcel?
- Personal property that becomes permanently attached to real property is called:
- In Alabama, a condominium owner holds:
- Which of the following is an encumbrance on Alabama real property?
- In Alabama, water rights appurtenant to land adjacent to a navigable waterway are governed by:
- In Alabama, the process of land being added to a property through the gradual deposit of soil by a river is called:
- A license to use another person's property in Alabama is different from an easement because a license is:
- In Alabama, a fee simple determinable estate automatically reverts to the grantor if:
- Tenancy by the entirety in Alabama is available to:
- The bundle of rights associated with real property ownership includes all EXCEPT:
- A riparian rights owner in Alabama has rights to:
- In Alabama, a life estate gives the life tenant the right to:
- In Alabama, property transferred to the state when an owner dies without a will or heirs is said to pass by:
- In Alabama, adverse possession requires continuous possession for how many years?
- Which type of ownership gives two or more persons equal and undivided interests with the right of survivorship?
- In Alabama, which form of co-ownership is available exclusively to married couples and features the right of survivorship?
- What is the distinguishing characteristic of a tenancy in common?
- A homestead exemption in Alabama primarily:
- A fee simple absolute estate is best described as:
- A life estate grants ownership:
- In Alabama, which type of deed provides the grantee with the greatest protection by including all five common law warranties?
- A quitclaim deed transfers:
- What does an easement appurtenant attach to?
- An encroachment occurs when:
- Adverse possession in Alabama requires continuous, open, and hostile use of the property for:
- A developer builds a planned unit development (PUD). Which characteristic is common to a PUD?
- A condominium owner holds:
- In a cooperative (co-op) ownership arrangement, the resident:
- Which of the following BEST describes a 'license' as an interest in real property?
- Which type of deed is typically used when a trustee conveys trust property to a beneficiary?
- In Alabama, property passes to the state through 'escheat' when:
- A 'lis pendens' recorded against a property means:
- An owner's property is subject to a utility easement along the rear 10 feet of the lot. The owner wants to build a fence along the property's rear boundary. Which statement is TRUE?
- The bundle of rights associated with real property ownership includes which of the following?
- The legal description method that divides the United States into townships and ranges is known as the:
- A township in the rectangular survey system contains how many sections?
- A section of land in the rectangular survey system contains how many acres?
- Which type of legal description uses compass directions and distances to trace the boundaries of a parcel?
- The lot and block legal description system is most commonly used in:
- Which of the following is considered real property in Alabama?
- The legal test for whether an item is a fixture (real property) includes which of the following factors?
- A seller installs a custom built-in bookcase specifically designed for a wall niche in the living room. When the home is sold, the bookcase is most likely:
- Which of the following interests in real property is considered a 'non-possessory' interest?
- A prescriptive easement is created through:
- In Alabama, when two or more persons hold title to property with the right of survivorship, this is called:
- A married couple in Alabama who holds title as tenants by the entirety may sell the property:
- Which type of ownership interest gives the holder the right to use and enjoy property for the duration of their life?
- In Alabama, personal property is conveyed by:
- An easement appurtenant involves:
- Riparian rights in Alabama refer to:
- When a property owner conveys property to another and retains no interest, this is known as a:
- A lis pendens recorded against a property provides notice of:
- Which of the following is an example of real property?
- Adverse possession in Alabama requires the claimant to possess the property openly, notoriously, continuously, and adversely for a minimum of:
- A mechanic's lien can be filed by a contractor or materialman who:
- A life tenant may NOT do which of the following with the property?
- Severalty ownership means the property is owned by:
- Which legal description method uses a point of beginning, directions, distances, and angular measurements?
- In Alabama's condominium ownership, the individual owner owns:
- An easement by necessity arises when:
- A deed of trust used as a security instrument differs from a mortgage in that:
- Escheat in Alabama means that when a person dies intestate (without a will) and has no heirs, their property:
- Which of the following is an involuntary lien on real property?
- A township in the rectangular survey system measures:
- A fee simple determinable estate automatically reverts to the grantor if:
- Which of the following is considered an appurtenance to real property?
- Accretion refers to the gradual addition of land by:
- A license in property law (distinct from a real estate license) refers to:
- Partitioning jointly owned real property means:
- A homestead exemption in Alabama reduces a property owner's:
- The concept of 'bundle of rights' in real estate includes the rights to:
- Littoral rights belong to property owners whose land borders:
- A deed that is delivered but not accepted by the grantee is:
- Emblements are best described as:
- The term 'fee simple subject to a condition subsequent' means the estate:
- Which of the following best describes the concept of 'color of title'?
- Tenancy in common differs from joint tenancy in that tenancy in common:
- The four unities required for a valid joint tenancy are:
- Deed restrictions placed in a subdivision plat are enforceable by:
- Curtesy and dower are rights that historically protected:
- A riparian owner in Alabama who loses land due to the gradual erosion of a streambank experiences:
- Avulsion in property law refers to:
- In Alabama, a homeowner who has not paid property taxes for an extended period may have their property sold at a:
- An Alabama property owner who grants a utility company the permanent right to run power lines across their land is granting a(n):
- Which of the following would terminate an easement appurtenant in Alabama?
- Under Alabama law, a deed to a corporation must be signed by:
- A property described as 'the NW 1/4 of the NE 1/4 of Section 5' in the rectangular survey system contains how many acres?
- An Alabama condominium association's power to regulate unit owners is established by the:
- Ownership of a cooperative housing unit (co-op) gives the owner:
- Which of the following liens has the highest priority in Alabama?
- In Alabama, a properly executed will that leaves real property to specific heirs transfers title through a process called:
- Which of the following is an encumbrance that does NOT affect the physical use of property?
- A survivorship deed in Alabama, often used by married couples, ensures that:
- Which of the following is an example of personal property that would become real property (a fixture) upon installation?
- The MARIA test is used to determine whether an item is a fixture. MARIA stands for:
- In Alabama, a sheriff's deed is issued when property is sold to satisfy a:
- Equitable title in real estate refers to:
- Which of the following correctly describes a 'remainder' interest in real property?
- Under Alabama law, a landlord who locks out a tenant without a court order is engaging in:
- A lien that is specific to a particular piece of real estate is called a:
- A deed that conveys 'all the grantor's right, title, and interest' without any warranty is a:
- In Alabama, which instrument is used to release a paid-off mortgage from the public record?
- Which of the following is NOT a characteristic required for adverse possession in Alabama?
- A blanket mortgage is used when:
- Under Alabama law, a homestead exemption primarily applies to:
- When a property owner dies intestate in Alabama without any heirs, their property:
- The legal description used in most Alabama urban subdivision lots is the:
- A fee simple estate subject to a condition can be distinguished from a fee simple absolute because:
- A profit à prendre (profit) is the right to:
- In Alabama, a properly recorded deed provides which type of notice to the world?
- A grantor who conveys property with the phrase 'for as long as the land is used as a school' is creating a:
- Under the Alabama Uniform Residential Landlord and Tenant Act, a landlord who enters the leased premises without proper notice in a non-emergency is:
- An Alabama property owner who builds a fence 2 feet over the neighbor's property line has created an:
- The recording act in Alabama protects which subsequent purchasers against prior unrecorded interests?
- Which of the following would be classified as an improvement to real property?
- In Alabama, a trust is commonly used in real estate to:
- The equitable right of redemption in Alabama allows a defaulted borrower to:
- A zoning variance is different from a rezoning in that a variance:
- An Alabama property owner who divides their land into smaller lots for sale must comply with:
- In Alabama, title to real property held by a deceased person passes either through:
- In Alabama, a marital homestead exemption protects a family home from forced sale by certain creditors up to what amount? (approximate under Alabama law)
- What is the primary difference between a lien and an encumbrance?
- An Alabama property owner who gives a neighbor permission to park in their driveway daily, without any formal agreement, has created a:
- In the rectangular survey system, which of the following describes a 'range'?
- Which of the following is NOT a characteristic of a fee simple absolute estate?
- A materialman's lien in Alabama must typically be filed within how many days of the last work or materials provided?
- When a property is condemned as unsafe by a municipality in Alabama, this is an exercise of the government's:
- An Alabama property that generates income from mineral rights leased to an oil company would include which component of real property?
- The term 'appurtenance' in real estate refers to:
- Under Alabama recording acts, a deed that is recorded:
Contracts
142 questions- Under Alabama law, contracts for the purchase of real estate must be in writing to be enforceable. This rule is known as the:
- In Alabama, a listing agreement is a contract between:
- A buyer makes an offer to purchase a home. The seller responds by changing the price. This response is a:
- Which of the following is NOT required for a valid real estate contract in Alabama?
- In Alabama, a buyer who defaults on a purchase contract may face which remedy at the seller's option?
- An Alabama purchase agreement includes a financing contingency. If the buyer cannot obtain financing, the buyer may:
- Under Alabama law, an offer to purchase real estate can be withdrawn:
- Which of the following listing agreements gives the seller the right to sell the property themselves without owing a commission?
- In Alabama, earnest money is held by the broker in a:
- A contract that is missing an essential element such as consideration is:
- Time is of the essence in a real estate contract means:
- Which type of listing requires the seller to pay a commission even if they sell the property themselves?
- A bilateral contract in real estate is one where:
- In Alabama, which remedy allows a court to order a party to complete a real estate transaction?
- An option contract in Alabama gives the optionee the:
- In Alabama, a contract signed by a 16-year-old is:
- Mutual assent in an Alabama real estate contract means:
- A purchase agreement in Alabama that is contingent on the sale of the buyer's current home is an example of a:
- Which of the following statements about an Alabama exclusive right to sell listing is TRUE?
- In Alabama, the parol evidence rule means that:
- Under Alabama law, a purchase contract for real property must be in writing to be enforceable under:
- An Alabama purchase contract contains a financing contingency. If the buyer cannot obtain financing, the buyer may:
- In Alabama, an option contract differs from a purchase contract in that:
- In Alabama, what is the effect of a counteroffer on the original offer?
- Which of the following would make a real estate contract voidable?
- An 'as-is' clause in a purchase contract means:
- In Alabama, which party typically prepares the deed in a residential real estate transaction?
- A real estate purchase contract becomes binding when:
- The doctrine of 'time is of the essence' in a real estate contract means:
- Which of the following is NOT a required element for a valid real estate contract in Alabama?
- Under Alabama's Statute of Frauds, real estate sales contracts must be:
- If a buyer makes an offer and the seller responds with different terms, the seller's response is legally considered:
- In a real estate sales contract, 'earnest money' is best described as:
- A buyer in Alabama includes a financing contingency in their purchase contract. If the buyer cannot obtain financing, the buyer is entitled to:
- What is the legal remedy of 'specific performance' in a real estate contract dispute?
- A real estate purchase contract that contains an 'as-is' clause means:
- Under Alabama law, a contract signed by a minor (under age 19) is generally:
- In a real estate contract, the term 'liquidated damages' refers to:
- An option contract in real estate gives the buyer the:
- A purchase contract contains a home inspection contingency. The buyer's inspector finds a cracked foundation. The buyer may:
- What is an 'addendum' to a real estate contract?
- The legal term for the person making an offer in a contract is:
- In a real estate contract, 'consideration' most commonly takes the form of:
- A 'contingency' in a real estate contract is best described as:
- What happens to the original offer when a seller submits a counteroffer?
- A buyer's offer is accepted by the seller. Before the buyer receives notice of acceptance, the buyer calls to revoke the offer. Which statement is CORRECT?
- A contract that is 'void' is:
- Which of the following is a characteristic of a 'voidable' contract?
- A contract entered into under duress is:
- Under the doctrine of 'merger,' what happens when a real estate purchase contract closes?
- A buyer's offer states that it will expire at 5:00 p.m. on Friday. On Friday at 6:00 p.m., the seller accepts the offer. Which of the following is TRUE?
- The phrase 'time is of the essence' in a real estate contract means:
- Which of the following BEST describes 'rescission' of a contract?
- A 'right of first refusal' clause gives the holder:
- In a 'subject to' sale, the buyer:
- An 'escalation clause' in a buyer's offer:
- A 'sale contingency' allows the buyer to:
- A buyer makes a written offer that the seller accepts with a minor handwritten change initialed only by the seller. This creates:
- A buyer who breaches a real estate contract and defaults may face which of the following from the seller?
- In Alabama, the Statute of Frauds requires that real estate contracts be:
- A buyer makes an offer on a home. The seller responds with a different price. This response is legally called a:
- Earnest money in an Alabama real estate transaction is:
- A contract in which one party has fully performed their obligations is called:
- An option contract in real estate gives the optionee the:
- If a seller accepts a buyer's offer by email without any changes, which of the following best describes the contract status?
- A contract clause that allows a buyer to exit if they cannot obtain financing is called a:
- Which of the following would make a real estate contract void in Alabama?
- In Alabama, if a buyer defaults on a real estate purchase contract, the seller's remedy may include:
- An Alabama purchase contract includes an 'as-is' clause. This means:
- A contract signed under duress is:
- Which type of listing agreement gives the broker the exclusive right to sell, meaning the broker earns commission regardless of who sells the property?
- The legal doctrine of 'specific performance' in real estate means:
- An agreement where one party promises to perform only if the other party performs first is a(n):
- Which type of listing agreement allows a seller to list with multiple brokers, paying commission only to the one who procures the buyer?
- Novation in contract law means:
- An addendum to a real estate contract:
- In Alabama, earnest money deposited with a broker becomes the broker's property:
- In Alabama, the seller's property condition disclosure is typically provided to the buyer:
- An Alabama purchase contract's inspection contingency typically gives the buyer the right to:
- A real estate agent who includes a clause in a purchase contract that protects only the agent's interests at the expense of their client is:
- A contract that has all essential elements but can be avoided by one of the parties is called:
- Which of the following best describes mutual consent (mutual assent) in contract formation?
- The parol evidence rule in contract law provides that:
- A real estate purchase contract that requires the buyer to purchase a home inspection within 10 days is a(n):
- In Alabama, a court may use the equitable remedy of rescission in a contract dispute to:
- A purchase contract states the property is to be conveyed 'in as-is condition.' Under Alabama law, this means the seller:
- The integration clause in a real estate purchase contract provides that:
- In Alabama, which of the following statements about electronic signatures in real estate contracts is correct?
- Accord and satisfaction in contract law means:
- An Alabama purchase contract that is contingent upon the buyer obtaining financing is considered:
- When a seller accepts a buyer's offer with written modifications, the effect is:
- Which of the following would NOT constitute adequate consideration in an Alabama real estate contract?
- In Alabama, an option to purchase is binding on the optionor (seller) but NOT on the optionee (buyer) because:
- If a seller dies after accepting a purchase offer but before closing, what happens to the purchase contract?
- An escalation clause in a purchase offer allows the buyer to:
- A contract for the sale of real estate that does not identify a specific price is generally:
- In Alabama, a buyer's right to rescind a purchase contract within 3 days applies most commonly to:
- Under Alabama law, a real estate contract that lacks a legal description of the property is generally:
- A right of first refusal in a real estate contract gives the holder the right to:
- In Alabama, the term 'closing' or 'settlement' in a real estate transaction refers to:
- In a real estate purchase contract, a home inspection contingency protects the buyer by allowing:
- An earnest money deposit that is 'at risk' means:
- In Alabama, the seller's disclosure of known material defects must occur before:
- A seller who accepts a buyer's offer and then finds a higher offer from another buyer is:
- A 'backup offer' in Alabama real estate is:
- A lease is a type of contract that creates which legal relationship?
- An Alabama purchase contract that is subject to the buyer obtaining a satisfactory home inspection within 14 days is an example of a:
- A lis pendens recorded against a property would appear in a title search and would alert a potential buyer that:
- Which of the following would make an Alabama real estate contract voidable rather than void?
- In Alabama, when is an offer considered formally accepted?
- An Alabama broker's listing agreement that does not specify an expiration date is:
- Equitable conversion in Alabama real estate law means that:
- An Alabama purchase contract that specifies the seller must provide a termite (wood-destroying insect) inspection report is an example of a:
- Misrepresentation of a material fact by a seller in Alabama that induces a buyer to purchase may allow the buyer to:
- A purchase agreement includes a 'buyer's walk-through' provision allowing inspection shortly before closing. The purpose of this is to:
- An Alabama buyer makes an offer on a home. The listing agent immediately responds that the seller is interested but wants $5,000 more. No written counteroffer is signed. Is there a binding contract?
- In Alabama, commission disputes between brokers are typically resolved through:
- An Alabama seller who withdraws a counteroffer before the buyer accepts it has legally:
- A contract clause stating 'in the event of buyer default, the earnest money shall be the seller's sole remedy' is an example of a(n):
- The seller's right to continue marketing the property while a purchase offer is pending, with an obligation to notify the buyer if a backup offer is accepted, is called a(n):
- In Alabama, a real estate purchase contract must be signed by:
- Specific performance as a remedy in a real estate breach of contract case is available because:
- A contingency in a real estate contract suspends the parties' obligations until:
- Under Alabama law, a contract with a mentally incompetent party is:
- An Alabama purchase contract that includes a 'due diligence period' allows the buyer to:
- The doctrine of 'caveat emptor' ('let the buyer beware') has been significantly limited in Alabama residential real estate by:
- In Alabama, who bears the risk of loss if a property is damaged between contract signing and closing?
- A 'hold harmless' clause in a real estate agreement protects one party from:
- Under Alabama contract law, an offer to purchase real estate can be revoked by the offeror:
- A 'subject to' clause in a purchase contract most commonly refers to the transaction being conditional upon:
- Rescission differs from cancellation of a contract in that rescission seeks to:
- An Alabama purchase contract requires that the property close 'on or before' a specified date. If the buyer is not ready to close on that date, this most likely constitutes:
- A lease agreement for commercial property in Alabama exceeding one year must be:
- When a seller provides a warranty deed with a covenant against encumbrances, they are promising that:
- A real estate contract that includes a right for one party to assign their contractual rights to a third party allows for:
- Which of the following is the most important difference between a listing agreement and a property management agreement?
- A real estate contract clause stating that the buyer may inspect within 10 days and notify the seller of defects, but may not cancel without providing the seller an opportunity to cure, is called a(n):
- The merger doctrine in Alabama real estate law provides that once a deed is delivered at closing:
- In Alabama, a purchase contract signed under economic duress — where one party had no reasonable alternative but to sign — may be:
- A purchase contract includes a seller's right to continue showing the property. If the buyer does not remove their contingency within a specified time after receiving a backup offer notice, the contract:
- An Alabama real estate listing contract terminates by operation of law upon:
- Which of the following would render an Alabama real estate contract unenforceable under the Statute of Frauds?
Property Valuation
127 questions- In Alabama, property is assessed for tax purposes at what percentage of fair market value for residential property?
- When using the sales comparison approach to value a property in Alabama, the appraiser:
- The principle of substitution states that a buyer will pay no more for a property than:
- An Alabama appraiser uses the income approach to value a rental property. The key formula is:
- Which type of depreciation is caused by factors outside the property, such as a nearby industrial facility?
- In Alabama, which approach to value is most appropriate for a single-family home in a residential neighborhood?
- Market value is best defined as:
- The cost approach to value in Alabama is best used for:
- Functional obsolescence in an Alabama property refers to:
- In an appraisal of an Alabama property, a positive adjustment to a comparable sale means the comparable is:
- The gross rent multiplier (GRM) in Alabama is calculated as:
- What does the principle of conformity state?
- The income capitalization approach to appraisal is MOST appropriate for:
- In the sales comparison approach, a comparable property that sold for more than the subject property due to a superior feature would require:
- The principle of substitution states that:
- Functional obsolescence in property valuation refers to:
- Economic (external) obsolescence is caused by:
- The cost approach to appraisal is MOST reliable when:
- The 'sales comparison approach' to property valuation is MOST appropriate for:
- Which appraisal approach involves estimating the value of a property by calculating the cost to reproduce or replace the improvements plus the land value?
- The income approach to appraisal is MOST commonly used for:
- In the income approach, which formula is used to estimate property value?
- A comparable sale used in an appraisal had a garage that the subject property lacks. The appraiser should:
- What is 'functional obsolescence' in property appraisal?
- What is 'external obsolescence' in property appraisal?
- The principle of 'highest and best use' in appraisal refers to the use that is:
- A property has a gross monthly rent of $2,000. Comparable properties have sold at a Gross Rent Multiplier (GRM) of 120. What is the estimated value?
- What is the principle of 'substitution' in real estate appraisal?
- An appraisal report is considered 'as of' a specific date because:
- Which of the following BEST defines 'market value'?
- The term 'depreciation' in appraisal means:
- In the cost approach, the term 'reproduction cost' means:
- The principle of 'progression' in real estate value states that:
- The principle of 'regression' in real estate value states that:
- Which type of accrued depreciation is considered 'incurable'?
- The principle of 'conformity' states that:
- An appraisal conducted for a federally related loan transaction must be performed by a:
- What does a Comparative Market Analysis (CMA) provide?
- When using the income approach, which type of property income is used for the capitalization calculation?
- A property has an annual gross income of $84,000, a vacancy rate of 5%, and operating expenses of $28,000. What is the NOI?
- An appraiser applies a 7% cap rate to a NOI of $42,000. What is the estimated property value?
- In a sales comparison appraisal, the phrase 'adjusting to the subject' means:
- Which of the following is NOT a valid method to estimate accrued depreciation in the cost approach?
- What is 'effective age' of a building in appraisal terms?
- A property has a chronological age of 20 years and a total economic life of 50 years. Using the age-life method, what is the depreciation rate?
- The USPAP (Uniform Standards of Professional Appraisal Practice) is:
- The principle of 'contribution' in appraisal states that:
- What is 'over-improvement' in real estate?
- The income approach to value is most commonly used to appraise:
- In the sales comparison approach, adjustments are made to the comparable properties to account for differences. If a comparable has a feature the subject property lacks, the adjustment to the comparable is:
- Capitalization rate (cap rate) is calculated as:
- Which type of depreciation is generally considered incurable and originates from outside the property?
- An appraiser determines a property's value by the cost to replace it, minus depreciation, plus land value. This is the:
- A property generates $60,000 in annual net operating income. If the cap rate is 8%, what is the property's estimated value?
- Gross Rent Multiplier (GRM) is calculated as:
- When an appraiser completes an appraisal in Alabama, the report is addressed to the:
- Market value assumes a transaction between:
- In the cost approach, economic life refers to:
- Functional obsolescence caused by a feature that is considered outdated or undesirable is called:
- The principle of contribution states that the value of any component of a property is:
- An appraiser using the income approach divides the net operating income by the capitalization rate to determine:
- When two or more appraisal approaches are used, the appraiser assigns weight to each method through a process called:
- The highest and best use of a property is defined as the use that is:
- Effective age of a building differs from actual (chronological) age because effective age:
- A comparable sale that sold 18 months ago may require a time (market conditions) adjustment because:
- Plottage is the increase in value resulting from:
- In the sales comparison approach, the subject property is compared to which of the following?
- An appraisal that understates value is called:
- The principle of progression in real estate means that:
- In an appraisal using the cost approach, the term 'reproduction cost' means:
- Which approach to value is most commonly used to appraise single-family residences?
- A broker's price opinion (BPO) differs from a formal appraisal in that a BPO:
- The principle of conformity states that maximum value is achieved when:
- When market data indicates that comparable sales prices are increasing, a time adjustment to a sale from 6 months ago would be:
- Effective gross income (EGI) for an investment property is calculated as:
- An appraiser notes a comparable property sold for $300,000. The comparable has a pool, but the subject does not. The pool is estimated to contribute $15,000 in value. The appraiser should:
- Depreciation in an appraisal context refers to:
- A comparable sale that is an REO (Real Estate Owned / bank foreclosure) sale may require an adjustment because:
- Functional obsolescence due to a feature that costs more to cure than the value it adds to the property is called:
- An appraisal report must comply with which set of professional standards?
- Regression in real estate appraisal means:
- When an appraiser states a value 'as of' a certain date, this is called the:
- Which of the following properties would most likely be appraised using the cost approach as the primary method?
- In a declining market, a time adjustment to comparable sales would generally be:
- The assessed value of a property for tax purposes is often:
- An appraiser's certification in the appraisal report states that the opinion of value is:
- Physical deterioration that can be economically repaired is called:
- The income capitalization approach values property primarily by analyzing:
- When an appraiser says a property has 'economic life remaining' of 20 years, it means:
- A broker's comparative market analysis (CMA) is used to:
- Which type of depreciation is associated with an outdated floor plan in a house?
- The principle of anticipation in real estate value states that:
- A straight-line method of depreciation for appraisal purposes assumes that:
- Which organization sets minimum qualification standards for state-certified and licensed real estate appraisers?
- An appraisal that values property for insurance purposes uses which value concept?
- Which of the following statements about land value is TRUE?
- What is the indicated value of a property with an annual NOI of $36,000 and a capitalization rate of 7.5%?
- Which of the following best describes an arm's length transaction used as a comparable sale?
- A property is listed with an asking price of $375,000. The appraiser's market value conclusion is $350,000. The lender will base the loan on:
- A property manager reports the following: Gross potential income $120,000; Vacancy 5%; Operating expenses $40,000. What is the NOI?
- An appraiser notes a comparable that is superior to the subject in one key feature. The appraiser should:
- The principle of balance in real estate states that maximum value is achieved when:
- A property purchased for $280,000 with improvements costing $45,000 was sold 2 years later for $370,000. What is the total gain?
- Net operating income minus debt service equals:
- Which of the following would be considered a micro-level factor affecting property value?
- A capitalization rate decreasing over time in a market generally indicates:
- Replacement cost in the cost approach uses the cost to build a structure:
- An appraiser who uses paired sales analysis is attempting to:
- The price per square foot of living area is commonly used as a unit of comparison in which appraisal approach?
- An operating expense for an investment property that is NOT included when calculating NOI is:
- Which principle of value explains why a retail property located on a busy intersection sells for more than an identical retail property on a quiet side street?
- Reproduction cost and replacement cost in the cost approach differ because:
- A real estate appraiser in Alabama must hold a state license or certification issued by:
- The gross income multiplier (GIM) differs from the gross rent multiplier (GRM) in that GIM uses:
- In Alabama, an appraisal for a federally related transaction (such as an FHA or conventional bank loan) must be performed by:
- Under USPAP, an appraiser's assignment must identify the intended use and intended user because:
- Market rent is the rental income a property would command in the open market, while contract rent is:
- A property's stabilized NOI is $78,000. If the cap rate is 7.5%, what is the indicated value?
- When appraising a property using the income approach, stabilized NOI is used rather than actual current NOI because:
- A residential property's square footage of gross living area (GLA) is measured:
- The demand side of real estate value is influenced primarily by:
- When an appraiser concludes that the cost approach results in a significantly higher value than the sales comparison approach, this may indicate:
- An appraisal performed 'retrospectively' (as of a past effective date) is used for:
- The principle of increasing and decreasing returns states that adding more improvements to a property:
- Net income ratio (NIR) is calculated as:
- An adjustment of +$10,000 is made to a comparable because the comparable has one fewer bathroom than the subject. This means the appraiser believes the extra bathroom contributes approximately $10,000 in value. This type of analysis is:
- An appraisal report for a single-family home mortgage most commonly uses which standardized form?
Agency
117 questions- In Alabama, which form must be provided to consumers at the first substantive contact with a real estate licensee?
- Under Alabama agency law, a 'limited consensual dual agent' may represent:
- A licensee working with a buyer who has not signed a buyer representation agreement is considered to be:
- Which fiduciary duty requires an Alabama agent to put the client's interests above their own?
- An Alabama listing agent discovers a material defect in the property. The seller instructs the agent to keep this secret. The agent should:
- A buyer's agent in Alabama owes which duty to the seller?
- In Alabama, which type of agency relationship is created when a broker represents both buyer and seller with written consent?
- An agent accidentally creates an agency through their conduct without a written agreement. This is called:
- In Alabama, the duty of confidentiality requires a listing agent to:
- When does an agency relationship typically terminate in Alabama?
- In Alabama, which document formally establishes a buyer agency relationship?
- An Alabama listing agent learns that the seller received notice of a job transfer and must sell quickly. This information is:
- The duty of obedience requires an agent to follow all lawful instructions of the client. An agent may refuse instructions that:
- Subagency in Alabama means:
- Which of the following best describes a transaction broker (non-agent) in Alabama?
- In Alabama, a buyer's agent who finds that a property has a latent defect not disclosed by the seller must:
- A dual agent in Alabama represents:
- Under Alabama law, a transaction broker owes which duties to both parties?
- Which type of agency is created when a principal's actions lead a third party to reasonably believe an agency relationship exists?
- When a listing agent learns that their seller is under severe financial distress and must sell quickly, the duty of confidentiality requires:
- A seller's broker who discovers that the buyer their seller is under contract with is the broker's own relative should:
- A subagent is BEST described as:
- Under Alabama agency law, when does an agency relationship with a buyer typically begin?
- A listing agent who learns that the seller is in severe financial distress must disclose this fact to:
- In Alabama, a 'facilitator' (also known as a transaction broker) owes which of the following duties?
- Which of the following BEST defines 'dual agency' in Alabama?
- Alabama licensees acting as buyer's agents owe the buyer all of the following fiduciary duties EXCEPT:
- A seller's listing agent discovers that the property's roof has significant undisclosed damage. What must the agent do?
- When must an Alabama licensee provide a consumer with the 'Understanding Agency' disclosure?
- An agent who works for a real estate firm that has a listing is representing a buyer interested in that listing. This creates what type of agency situation?
- What is the primary purpose of an exclusive buyer agency agreement in Alabama?
- A buyer's agent who learns confidential information about the buyer (such as the maximum price they are willing to pay) must:
- A salesperson signs a listing agreement on behalf of their qualifying broker. Who is the actual listing agent (the seller's agent)?
- The duty of 'reasonable care and diligence' requires an agent to:
- Which of the following actions would constitute a breach of fiduciary duty by a buyer's agent?
- A real estate agent who is a designated agent in a dual-agency transaction may:
- An agent showing a buyer a property that is NOT listed by the buyer's agent's brokerage is most likely acting as:
- A real estate agent who represents neither the buyer nor the seller, but assists both parties with a transaction, is called a:
- The term 'subagency' in real estate agency law means:
- The duty of 'accounting' in a real estate agency relationship requires the agent to:
- A listing agreement is a contract between:
- Which listing agreement type provides the brokerage with the greatest level of protection and is MOST commonly used?
- Under an open listing, the seller:
- A net listing is one where:
- An agency relationship may be terminated by all of the following EXCEPT:
- Which of the following is the BEST example of a material fact that must be disclosed to a buyer?
- In Alabama, a real estate agent must disclose to a prospective buyer that they have a personal financial interest in a property they are selling. This disclosure must be:
- In Alabama, a written brokerage agreement that creates an agency relationship between a broker and seller is called a:
- Under Alabama law, what type of agent owes the highest fiduciary duties to only one principal?
- A buyer's agent in Alabama has a duty to:
- In Alabama, a real estate agent acting as a dual agent must:
- Which fiduciary duty requires an agent to keep the principal's information private from third parties?
- An agent who has an undisclosed interest in a property they are selling on behalf of a client is violating which fiduciary duty?
- In Alabama, when must a licensee disclose their agency relationship to a prospective buyer?
- A subagent in Alabama represents:
- Which of the following best describes the concept of 'ratification' in agency law?
- An agent who follows a client's instructions to the letter, even when those instructions may not be in the client's best interest, is fulfilling the duty of:
- The duty of 'accounting' in a fiduciary relationship requires an agent to:
- An agency relationship can be terminated by which of the following?
- In Alabama, designated agency means:
- A buyer's broker discovers that the seller is facing foreclosure — information not directly related to the property. The buyer's broker should:
- Which of the following describes a 'net listing' in Alabama?
- The term 'puffing' in real estate refers to:
- If a seller's agent discovers a hidden structural defect in the property, they are obligated to:
- Under Alabama law, when a buyer signs a buyer agency agreement, the agent's loyalty is owed to:
- Apparent authority of an agent arises when:
- A listing agent who tells a buyer that the seller 'must sell quickly' is:
- The duty of disclosure in an agency relationship requires the agent to:
- A buyer's agent who learns the sellers are going through a divorce and are highly motivated should:
- An exclusive buyer agency agreement obligates the buyer to:
- In Alabama, the listing broker's duty to present all offers to the seller means:
- A material fact in real estate is best defined as:
- A seller's agent who discovers a serious foundation crack that the seller has concealed should:
- Gratuitous agency is an agency relationship created:
- An Alabama agent who receives offers on a listing is required to present them:
- A real estate agent's fiduciary duty of loyalty means the agent must:
- An agency relationship created without explicit agreement but implied by the actions of the parties is called:
- In a real estate transaction, the principal is best defined as:
- Which type of agency listing agreement requires the listing broker to pay a commission even if the seller finds the buyer?
- An agent who continues to act for a principal after the agency agreement has expired is acting:
- The seller's agent has a duty to inform a prospective buyer of which of the following?
- A transaction broker (facilitator) in Alabama has duties to the parties that:
- An Alabama buyer's agent who knows their buyer client has a strong emotional attachment to a particular property should:
- In Alabama, the Consumer Pamphlet on Working with Real Estate Agents is required to be:
- An Alabama broker who personally negotiates and closes on a property they own has a conflict of interest that requires:
- In Alabama, a seller's agent may disclose which of the following about the seller to a buyer?
- Which of the following situations would create an implied agency in Alabama?
- When an Alabama salesperson represents a buyer, the employing broker is considered to be:
- An agent is required to pass along all offers to the seller, but may an agent refuse to present an offer at the seller's explicit written request?
- A real estate broker who participates in a transaction in a neutral, non-agency facilitating role is often called a:
- A licensee working as a transaction facilitator in Alabama owes the parties:
- The procuring cause doctrine determines which broker is entitled to a commission by identifying:
- A buyer's agent who learns that the property has an unresolved permit issue from an addition built without permits should:
- If an Alabama broker learns that their seller client is about to commit fraud in a transaction, the broker should:
- The 'duty to account' in a real estate agency means the agent must:
- In a dual agency situation, the agent owes both parties the duty of:
- Which of the following best describes the relationship between an Alabama broker and their affiliated salesperson?
- In Alabama, when a listing agent receives an offer far below the listing price, their duty is to:
- The agency disclosure required in Alabama is intended to:
- An Alabama buyer's agent who has been unable to find any properties meeting the buyer's stated needs should:
- An Alabama real estate licensee must keep a client's confidential information confidential:
- Which of the following is an example of a licensee's duty of 'diligence' to their client?
- The duty of 'reasonable care and diligence' requires an Alabama licensee to:
- Which of the following situations is an example of an agent violating their fiduciary duty of loyalty?
- Under Alabama law, an agent who learns their client intends to use the property for an illegal purpose should:
- The phrase 'meeting of the minds' in contract law refers to:
- A real estate agent's authority to bind their principal in a contract is known as:
- Under Alabama law, a listing broker's duty to the seller is BEST characterized as:
- The term 'procuring cause' determines which broker earned the commission by identifying:
- In Alabama, a buyer who is not represented by an agent when purchasing a home listed by a listing broker should understand that the listing broker:
- An Alabama agent who receives a higher offer after already presenting and having accepted a lower offer should:
- An Alabama real estate agent's primary obligation when serving a buyer client is to:
- An Alabama real estate agent who represents a client in a transaction and also has a financial interest in the outcome should:
- A buyer's agent in Alabama who also manages rental properties for investors has a potential conflict of interest when:
- The term 'customer' (as opposed to 'client') in Alabama real estate refers to:
- A seller's agent who acts within the scope of their authority to negotiate a contract price with a buyer has which type of authority?
- In Alabama, agency relationships are most commonly created by:
Real Estate Math
111 questions- A property in Alabama sells for $240,000. The total commission is 6%. How much does the listing broker receive if the commission is split equally with the buyer's broker?
- Alabama property has an assessed value of $18,000 (at 10% of market value). The tax rate is 50 mills. What is the annual property tax?
- An Alabama property has a net operating income of $45,000 and a cap rate of 7.5%. What is the property's value?
- A buyer in Alabama puts 10% down on a $320,000 home. What is the loan amount?
- An Alabama agent earns a 3% commission on a $180,000 sale. How much is the commission?
- A property rents for $1,200/month. If the gross rent multiplier is 10, what is the estimated value?
- Annual property taxes in Alabama are $2,400. Closing is on March 31. The seller owes taxes for January 1 through March 31 (90 days). How much does the seller owe at closing?
- A buyer obtains a $200,000 loan at 6% annual interest. What is the first month's interest payment?
- A lot measures 150 feet × 200 feet. How many acres is this? (1 acre = 43,560 sq ft)
- A home sells for $275,000. The seller's original purchase price was $220,000. What is the percentage of appreciation?
- An Alabama property has a market value of $350,000. It is assessed at 10% for tax purposes. The mill rate is 40 mills. What are the annual property taxes?
- A listing agent receives 60% of a 5% commission on a $400,000 sale. How much does the listing agent earn?
- An Alabama income property has a gross income of $60,000, vacancy losses of $3,000, and operating expenses of $22,000. What is the NOI?
- A property in Alabama sells for $425,000. The transfer tax rate is $0.50 per $500. What is the transfer tax?
- A buyer makes a down payment of $45,000 on a $300,000 home in Alabama. What is the LTV ratio?
- An Alabama salesperson earns $9,600 on a transaction. If this represents 60% of the broker's commission, what was the total broker commission?
- An Alabama property appreciated 15% in one year. If it is now worth $460,000, what was the original value?
- A property sells for $285,000. The listing agent and buyer's agent each earn 3% commission. How much does each agent receive?
- A buyer takes out a $240,000 mortgage at 6.5% annual interest. What is the first month's interest payment?
- A property is assessed at 25% of its market value. The tax rate is 45 mills. If the market value is $180,000, what is the annual property tax?
- An investor purchases a rental property for $320,000 with a 25% down payment. What is the loan-to-value (LTV) ratio?
- A property's net operating income is $36,000 annually. If the cap rate is 8%, what is the property's estimated value?
- A seller nets $198,000 after paying a 6% commission. What was the sale price of the property?
- A property is listed at $375,000. The seller accepts an offer at 96% of list price. The commission is 5.5%. What is the commission amount?
- A square lot measures 220 feet on each side. What is the area in acres? (1 acre = 43,560 sq ft)
- A buyer obtains a $180,000 mortgage at 7% for 30 years. The monthly payment factor is $6.65 per $1,000 borrowed. What is the monthly principal and interest payment?
- An investor buys a property for $425,000 and sells it 3 years later for $510,000. What is the percentage gain?
- A building has a gross annual income of $120,000, vacancy and collection loss of 8%, and operating expenses of $35,000. What is the net operating income (NOI)?
- A building has a gross annual income of $96,000, vacancy loss of 5%, and operating expenses of $28,000. What is the net operating income (NOI)?
- A property sells for $325,000. The total commission rate is 6%. The listing broker and buyer's broker each receive 50% of the commission. How much does the listing broker receive?
- A salesperson earns 55% of the commission paid to their broker. If the broker received $9,750 on a sale, how much does the salesperson earn?
- A buyer obtains an 80% loan-to-value mortgage on a home. The purchase price is $275,000. What is the required down payment?
- A property's assessed value is $180,000 and the tax rate is $14 per $1,000 of assessed value. What is the annual property tax?
- An investor purchases a rental property for $400,000. The annual NOI is $32,000. What is the cap rate?
- A homeowner wants to net $240,000 after paying a 5% commission. What is the minimum selling price?
- A rectangular lot measures 200 feet by 150 feet. What is the lot's area in acres? (1 acre = 43,560 sq ft)
- A property was purchased for $180,000 and sold 3 years later for $216,000. What was the percentage gain?
- A property has a gross annual income of $60,000 and annual expenses of $22,000. What is the net operating income (NOI)?
- A seller accepts an offer of $310,000 on their home. The seller's existing mortgage balance is $195,000. Closing costs are $8,000, and the real estate commission is 6%. How much does the seller net from the sale?
- A property has an assessed value of $240,000. The assessment ratio is 20% of market value, and the tax rate is $35 per $1,000 of assessed value. What is the annual property tax?
- A property sold for $385,000. The buyer made a 10% down payment. The lender charges a 1% origination fee. What is the origination fee?
- A home is listed at $250,000. The broker's commission is 6%. If the listing broker splits the commission 50/50 with a cooperating broker, how much does each broker receive?
- A property has a gross annual income of $84,000 and a GRM of 10. What is the estimated property value?
- A rectangular lot measures 150 feet by 200 feet. What is the area in acres? (1 acre = 43,560 sq ft)
- A seller wants to net $180,000 after paying a 6% commission. What must the property sell for?
- A property's assessed value is $120,000. The tax rate is $15 per $1,000 of assessed value. What is the annual property tax?
- A property sold for $320,000. If the assessed value is 80% of market value, what is the assessed value?
- An investor purchased a property for $400,000 and sold it for $460,000. What is the percentage profit?
- A building has 12 units renting at $750/month each. The vacancy rate is 5%. What is the annual effective gross income?
- A mortgage of $150,000 at 7% annual interest has a monthly payment of $998. How much of the first payment is principal?
- Transfer taxes in Alabama are $0.50 per $500 of the sale price. What is the transfer tax on a $275,000 sale?
- A house sold for $275,000. The seller paid a 5.5% commission. What was the total commission?
- A property is assessed at 60% of its market value. The market value is $400,000. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?
- A building has a net operating income of $45,000. If the cap rate is 9%, what is the estimated value?
- A lot measures 75 feet wide and 120 feet deep. What is its area in square feet?
- An investor wants a 10% return on a $500,000 investment. What annual net operating income is needed?
- A property's annual gross income is $96,000. The GRM is 8. What is the property's estimated value?
- A seller nets $200,000 after paying a 7% commission. What was the sale price?
- A $250,000 loan at 5% annual interest has a monthly payment of $1,342. How much of the first payment goes to interest?
- An agent earns 3% of the sale price. The property sold for $320,000. What is the agent's commission?
- A property has 6 units each renting for $900/month. Annual operating expenses are $28,000. What is the annual NOI assuming no vacancy?
- A property was purchased for $180,000 three years ago. It has appreciated 5% per year (simple). What is its current value?
- A rectangular lot is 200 feet by 300 feet. What is its area in acres? (43,560 sq ft per acre)
- An agent earns a 6% commission on a sale. The listing side gets 3% and the selling side gets 3%. The home sold for $350,000. How much does each side earn?
- A house rents for $1,500/month. The gross rent multiplier (GRM) in the area is 120 (monthly). What is the estimated value?
- A seller lists their home for $289,000. After negotiation, they accept $275,000. What is the ratio of sale price to list price?
- A home was purchased for $200,000. The owner makes improvements worth $30,000. The home sells for $250,000. What is the profit?
- Annual property taxes are $3,600. The closing is on September 30 (day 273 of 365). If taxes are paid in arrears, how much does the seller owe in prorated taxes?
- A $220,000 loan has a monthly payment of $1,319. After the first payment, the remaining balance is $219,731. How much principal was paid in the first month?
- An investor buys a building for $500,000 with a 25% down payment. What is the loan amount?
- A building has 8 units all renting at $850/month. The vacancy rate is 8%. Annual operating expenses are $30,000. What is the NOI?
- A property was listed for $310,000 and sold for $295,000. What was the sales price as a percentage of the list price?
- A property has an annual NOI of $54,000 and a cap rate of 6%. What is the property's value?
- A commercial property leases 10,000 sq ft at $18 per sq ft per year. What is the annual base rent?
- A buyer's loan amount is $240,000 at 5.5% annual interest. What is the monthly interest portion of the first payment?
- An investor purchased a 4-unit building for $480,000. Each unit rents for $1,100/month. What is the gross rent multiplier?
- A sales commission of 5.5% on a $460,000 sale is split equally between listing and buyer's broker. What does each broker receive?
- A home's assessed value is $195,000. The tax rate is 22 mills. What is the annual tax? (1 mill = $0.001 per dollar of assessed value)
- A seller's net after a 6% commission and $4,500 in closing costs is $230,000. What did the property sell for?
- A property's purchase price is $180,000 with a 20% down payment. The buyer also pays 2 points on the loan. What is the total cost of the points?
- A building has a replacement cost new of $500,000. It has a remaining economic life of 30 years and a total economic life of 50 years. What is the accrued depreciation using straight-line method?
- A property has an annual net operating income of $72,000. The capitalization rate is 8%. What is the estimated property value?
- An agent earns a 3% commission on both sides of a transaction. The home sold for $425,000. How much did the agent earn in total?
- A buyer puts 15% down on a $340,000 home. What is the loan amount?
- A 6-unit apartment building has a gross potential income of $5,400/month. If vacancy is 6%, what is the annual effective gross income?
- A home was purchased for $225,000 and sold 4 years later for $270,000. What was the percentage appreciation over the entire 4-year period?
- A buyer pays 2.5 discount points on a $200,000 loan. How much does the buyer pay for the points?
- A 40-acre parcel is how many square feet? (1 acre = 43,560 sq ft)
- A house sells for $310,000 with a 5.5% commission. The listing broker and buyer's broker split the commission equally. What does the listing broker's salesperson receive if they get 60% of the listing side?
- The interest rate is 6.5% annually. A $165,000 loan has been outstanding for one year. How much interest accrued?
- An investor purchased a duplex for $280,000. Each unit rents for $950/month. Annual operating expenses are $14,400. What is the annual NOI?
- A property has gross potential income of $108,000 per year. Vacancy is 7%. Operating expenses are $35,000. What is the NOI?
- A broker's operating account shows he earned $85,000 in commissions and spent $42,000 on business expenses. His net income from the business is:
- A home is listed for $399,000. After a 90-day market period, the seller reduces the price by 4%. What is the new list price?
- Calculate the transfer tax on a $450,000 property sale if the rate is $0.50 per $500 of value.
- A property has 18 units. Each unit rents for $775/month. The building sold with a GRM of 9 (annual). What was the sale price?
- A property is assessed at 40% of market value. The tax rate is 50 mills. The annual tax is $6,000. What is the market value?
- A $180,000 mortgage at 7% interest has annual interest of $12,600 in the first year. Monthly, this is:
- An appraiser estimates a property at $425,000 using the sales comparison approach and $410,000 using the cost approach. The final reconciled value is $420,000. The sales comparison approach received the most weight. This is appropriate because:
- A buyer takes out a $260,000 loan. The closing costs are 3% of the loan amount. How much does the buyer pay in closing costs?
- A property's NOI is $50,000. If the cap rate decreases from 8% to 7%, how does the estimated property value change?
- A 10-unit apartment building has all units renting at $925/month. The gross rent multiplier is 8 (annual). What is the estimated value?
- A $350,000 property is assessed at 70% of market value. The tax rate is 18 mills. What is the annual tax?
- A broker earns a 6% commission on a $480,000 sale. If the broker pays their salesperson 55% of the listing side (50/50 split with buyer's broker), how much does the salesperson earn?
- A property has an NOI of $42,000 and debt service of $30,000 per year. What is the before-tax cash flow?
- If a property's cap rate is 9% and the NOI is $54,000, what is the value? If NOI increases to $60,000, what is the new value?
- A lender charges 2 origination points plus $1,500 in other fees on a $225,000 loan. What are the total upfront loan costs?
- A property sold for $262,500. The assessed value is $175,000. What is the assessment ratio?
- A seller wants to net $155,000 after paying a 5% commission and $2,500 in closing costs. What must the property sell for?
- An investor purchases a rental property for $320,000 with $80,000 down. The annual NOI is $24,000 and debt service is $18,000. What is the cash-on-cash return?
- A property's replacement cost new is $380,000. The land value is $60,000. Accrued depreciation is $95,000. What is the indicated value by the cost approach?
Fair Housing
98 questions- Alabama's fair housing laws prohibit discrimination based on which federal protected classes plus additional state protections?
- Steering — directing buyers toward or away from neighborhoods based on protected class characteristics — is:
- Blockbusting in Alabama is the illegal practice of:
- Under the Fair Housing Act, which of the following is a protected class?
- Which of the following is an example of redlining?
- A landlord in Alabama may legally refuse to rent to a person with a disability if:
- The Fair Housing Act exempts owner-occupied buildings with how many or fewer units from certain provisions?
- In Alabama, a landlord may legally ask which of the following questions of a rental applicant?
- Under the Fair Housing Act, a landlord must allow a tenant with a disability to make reasonable modifications to a rental unit. Who typically pays for these modifications?
- An Alabama real estate ad that says 'ideal for empty nesters' could be considered discriminatory because it:
- Which federal agency enforces the Fair Housing Act in Alabama?
- Senior housing communities in Alabama may legally restrict occupancy to persons 55 or older if they meet which requirements?
- The Fair Housing Act of 1968 was amended in 1988 to add which protected classes?
- Under the Fair Housing Act, which of the following is an example of steering?
- A landlord who charges a higher security deposit to a tenant with a disability than to other tenants is:
- Which of the following is an example of a reasonable accommodation under the Fair Housing Act for a disabled tenant?
- The term 'blockbusting' refers to:
- The Americans with Disabilities Act (ADA) applies to real estate primarily in the context of:
- The federal Fair Housing Act of 1968 originally prohibited discrimination based on which classes?
- Which of the following is an example of 'steering' under fair housing law?
- Which of the following is an example of 'blockbusting'?
- 'Redlining' refers to:
- Under the federal Fair Housing Act, a landlord MAY legally:
- A person with a disability asks a landlord for permission to keep an assistance animal in a no-pets building. The landlord must:
- The Alabama Fair Housing Law is enforced by:
- Which of the following advertising statements MOST likely violates the Fair Housing Act?
- The 'familial status' protected class under the Fair Housing Act covers:
- Under the Fair Housing Act, a property owner must allow a tenant with a disability to make reasonable modifications to the unit. Who pays for these modifications?
- A disabled person asks their landlord for permission to add a ramp at the entrance of their unit. The landlord must:
- Which of the following is a valid exception to the familial status provisions of the Fair Housing Act?
- A HUD complaint alleging a fair housing violation must be filed within how many days of the alleged discriminatory act?
- Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?
- When a real estate agent discourages a minority buyer from viewing properties in a predominantly white neighborhood, this is an example of:
- Which federal agency is primarily responsible for enforcing the Fair Housing Act?
- A seller tells their listing agent they will not sell to anyone of a particular national origin. The agent should:
- An Alabama property owner who rents out a single-family home without using a real estate agent is exempt from the Fair Housing Act ONLY if they:
- Which of the following describes 'disparate impact' in fair housing?
- The Civil Rights Act of 1866 prohibits discrimination in property transactions based on:
- The federal Fair Housing Act of 1968 prohibits discrimination in housing based on which protected class that was added in 1988?
- Steering in real estate means:
- Which of the following is an example of blockbusting?
- Under the federal Fair Housing Act, a complaint must be filed with HUD within how many days of the alleged discriminatory act?
- A landlord who requires a higher security deposit from tenants with disabilities than from other tenants is:
- The Fair Housing Act exempts which of the following from its requirements?
- Redlining is the illegal practice of:
- Under the Fair Housing Act, a 55-and-older housing community may lawfully exclude families with children if:
- An Alabama property manager refuses to rent to a veteran. Under the federal Fair Housing Act, this is:
- Which federal law prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, or age?
- A real estate agent who advertises a property as located in a 'Christian neighborhood' is violating the Fair Housing Act because it discriminates based on:
- Under the Fair Housing Act, a disabled tenant has the right to make reasonable modifications to a rental unit if:
- The concept of 'disparate impact' in fair housing means:
- Which of the following would be a violation of the Fair Housing Act by a property manager?
- A landlord in a state with no additional fair housing protections beyond federal law may legally refuse to rent to someone because of their:
- Testing for fair housing violations involves:
- Under the Fair Housing Act, which type of housing is NOT subject to its requirements?
- What is the maximum civil penalty for a first violation of the Fair Housing Act under HUD enforcement?
- Which of the following advertising statements would most likely violate the Fair Housing Act?
- A reasonable accommodation under the Fair Housing Act for a disabled person is:
- An Alabama property manager who enforces a 'no children' policy in a large apartment complex is most likely violating which protected class under the Fair Housing Act?
- Which of the following is an example of a reasonable accommodation for a disabled tenant?
- Under the Fair Housing Act, which of the following is a permissible basis for refusing to rent to a prospective tenant?
- An agent who only shows Hispanic buyers homes in predominantly Hispanic neighborhoods is guilty of:
- The Fair Housing Act protects against discrimination in which of the following activities?
- A landlord who tells a prospective tenant 'that unit has already been rented' when it has not, because of the prospective tenant's religion, is guilty of:
- Which of the following statements about the Americans with Disabilities Act (ADA) and housing is TRUE?
- Under the Fair Housing Act, a listing agent placing 'For Sale' signs only in neighborhoods of one racial composition while refusing signs in integrated neighborhoods could be violating the Act through:
- A private club that provides housing exclusively to its own members:
- Sexual harassment by a landlord or property manager is covered under the Fair Housing Act as a form of discrimination based on:
- Under the Fair Housing Act, a landlord may require a tenant with a psychiatric disability to:
- HUD's enforcement of the Fair Housing Act may result in which type of relief for a successful complainant?
- Which of the following describes 'disparate treatment' in fair housing?
- An Alabama real estate agent who only shows a buyer homes in neighborhoods of one racial composition, claiming it is 'what the buyer requested,' is:
- Under the Fair Housing Act, 'quid pro quo' sexual harassment in housing occurs when:
- The phrase 'protected class' in fair housing law refers to:
- Which of the following is NOT a protected class under the federal Fair Housing Act?
- A landlord in Alabama who refuses to allow a deaf tenant to install a visual fire alarm is:
- The Unruh Civil Rights Act is a state-level law that expands fair housing protections. However, in Alabama, additional fair housing protections beyond federal law are:
- A real estate agent who tells prospective buyers that a neighborhood 'has changed a lot recently' as a coded reference to demographic changes may be engaged in:
- Which of the following acts of a real estate professional would be legal under fair housing laws?
- Under HUD's hostile environment sexual harassment standard in housing, a landlord may be liable when:
- The Fair Housing Act's requirement that multifamily housing built after March 1991 be accessible to persons with disabilities applies to buildings with:
- A real estate agent who makes a listing available only on MLS and declines to show it to anyone who walks in from the street is:
- Source of income as a protected class in housing would protect against discrimination based on:
- The 1988 Fair Housing Amendments Act added which two new protected classes?
- A housing provider who refuses to make a reasonable accommodation for a person with a disability is violating the Fair Housing Act unless:
- Which organization is primarily responsible for enforcing the federal Fair Housing Act?
- An Alabama landlord who requires a higher income-to-rent ratio from one racial group than from another racial group is engaging in:
- Fair housing testing programs are designed to:
- Under the Fair Housing Act, a landlord who denies housing to an applicant solely because of their HIV/AIDS status is:
- The Fair Housing Act requires that new construction of multifamily housing (4+ units) built after 1991 include accessible features such as:
- Disparate treatment occurs when a lender offers different interest rates to borrowers of different races with identical financial profiles. This is an example of:
- The concept of 'reasonable accommodation' under the Fair Housing Act applies to:
- An advertisement that states 'ideal for young couples' most likely violates the Fair Housing Act because it suggests a preference against:
- A seller who tells their listing agent 'I don't want to sell to anyone from that country' is asking the agent to:
- A HUD complaint of fair housing discrimination must be filed within what time period?
- Which term describes the practice of insurance companies refusing to issue homeowner's insurance in certain neighborhoods based on their racial composition?
- Under the Fair Housing Act, which of the following is NOT considered a form of discrimination in the terms and conditions of rental housing?
- Which of the following represents a violation of the Fair Housing Act by a real estate agent?
Escrow & Title
97 questions- In Alabama, which party typically selects the closing attorney?
- Which type of title insurance policy protects the lender in an Alabama real estate transaction?
- In Alabama, a title search examines public records to:
- A quitclaim deed in Alabama conveys:
- For a deed to be valid in Alabama, it must include all of the following EXCEPT:
- Recording a deed in Alabama protects the buyer by:
- A lis pendens recorded against an Alabama property indicates:
- In Alabama, which of the following encumbrances would NOT be discovered through a title search?
- In Alabama, title to real property is transferred by delivery and acceptance of a:
- A special warranty deed in Alabama is one in which the grantor warrants the title against:
- In Alabama, a mechanic's lien may be filed by:
- An Alabama title insurance policy protects the insured against:
- A title insurance policy that protects the lender's interest is called a:
- In Alabama, a general warranty deed provides which guarantees?
- Which deed provides NO warranties and conveys only whatever interest the grantor has, if any?
- In Alabama, which document provides the most protection for a buyer against title defects?
- Which of the following encumbrances would NOT be revealed by a title search?
- Proration at closing refers to:
- What is the purpose of title insurance in a real estate transaction?
- A lender's title insurance policy protects:
- The chain of title refers to:
- An escrow account in a real estate transaction is used to:
- In Alabama, which professional is typically responsible for conducting a real estate closing?
- A title search reveals a mechanic's lien on the property from an unpaid contractor. At closing, this lien is typically:
- What is a 'cloud on title'?
- What is the significance of recording a deed in the county probate court in Alabama?
- Which type of notice is provided when a buyer physically occupies a property?
- A RESPA violation occurs when a settlement service provider receives or gives a 'kickback' or unearned fee. Which statement is CORRECT?
- Marketable (merchantable) title means:
- An abstract of title is:
- In Alabama, deeds are recorded in the:
- A buyer who takes title without knowledge of a prior unrecorded deed has what type of protection under Alabama's recording statutes?
- Which of the following items is typically a CREDIT to the buyer on the closing disclosure?
- A mechanic's lien arises when:
- Which of the following statements about a survey is TRUE?
- The Closing Disclosure (CD) must be provided to the buyer at least how many business days before closing?
- A deed of trust differs from a mortgage in that:
- A general warranty deed provides the grantee with which warranties?
- A quitclaim deed conveys:
- In Alabama, a deed must be recorded in:
- Title insurance protects the policyholder against:
- The ALTA (American Land Title Association) owner's policy protects:
- Which document transfers title from seller to buyer in a real estate transaction?
- Constructive notice is provided by:
- A special warranty deed warrants title only against defects arising:
- Proration of property taxes at closing means:
- In a title search, a 'cloud on title' refers to:
- A preliminary title report (title commitment) serves what purpose?
- Abstract of title is best described as:
- In Alabama, when does title to real property transfer from seller to buyer?
- A warranty of seisin in a general warranty deed means the grantor warrants that:
- A buyer purchases an owner's title insurance policy. This policy protects the buyer:
- In a typical Alabama residential closing, who prepares the HUD-1 or Closing Disclosure?
- A buyer who purchases property at a tax sale receives which type of deed?
- Priority of liens in Alabama generally follows what rule?
- The doctrine of actual notice means:
- In a sale-leaseback arrangement, the seller:
- A quiet title action in Alabama is a court proceeding used to:
- A buyer's lender requires a lender's title insurance policy. Who typically pays for this in Alabama?
- The grantor of a deed is:
- A deed that transfers property from a deceased person's estate to beneficiaries under a will is called a(n):
- Proration of real estate taxes at closing means:
- A buyer who records their deed promptly after closing protects themselves from:
- RESPA requires that buyers receive a copy of the 'Your Home Loan Toolkit' brochure within how many business days of loan application?
- Which type of deed would a grantor use to convey property while retaining a life estate?
- The ALTA lender's title insurance policy protects the lender for the life of the loan up to:
- Which of the following would be found as an exception in a standard title insurance policy?
- A deed that conveys property 'to John Smith and his heirs' creates which type of estate?
- An 'as-is' clause in a deed has what effect?
- Chain of title refers to:
- In Alabama real estate closings, who is typically responsible for ensuring that all documents are properly executed?
- A buyer who receives a title insurance policy discovers after closing that there is a judgment lien from the previous owner's unpaid debt. The title insurance company will:
- The doctrine of merger in real estate means that upon closing:
- An Alabama title search covering the last 40 years is considered adequate under what legal concept?
- If a property owner fails to pay property taxes in Alabama, the state may eventually acquire the property through a process called:
- When real estate closing costs are prorated, the standard method used in most Alabama transactions is:
- A deed that is signed by the grantor but held by a third party to be delivered upon the occurrence of a condition is known as a(n):
- A buyer who purchases property 'subject to' an existing mortgage:
- In a 1031 exchange, a real estate investor:
- Concurrent closing in a 1031 exchange means:
- In a typical Alabama residential transaction, who pays for the owner's title insurance policy?
- A title company's escrow officer is responsible for:
- Which of the following statements about recording acts in Alabama is correct?
- A buyer who pays cash for a property and does not obtain title insurance is:
- An Alabama attorney who handles real estate closings must:
- The Closing Disclosure (CD) replaced which form in 2015?
- A 'gap' in title refers to:
- In Alabama, the probate court records where deeds are filed and recorded. This serves the purpose of:
- A buyer who receives a title report showing an unresolved mechanic's lien from the previous owner should:
- A grant deed in states that use it differs from a warranty deed in that a grant deed:
- Which of the following parties at closing would typically receive a credit on the settlement statement?
- A 'satisfaction of judgment' recorded in Alabama serves to:
- An Alabama title insurance company that discovers a previously unknown prior deed would:
- Which document in a real estate closing sets forth all credits and debits for buyer and seller?
- A deed recorded in Alabama that is later determined to have been forged:
- Which of the following would NOT be insured under a standard title insurance policy?
- The covenant of warranty in a general warranty deed means the grantor:
Property Management
84 questions- Under Alabama landlord-tenant law, a landlord must return a security deposit within how many days after the tenant vacates?
- Under the Alabama Uniform Residential Landlord and Tenant Act, a landlord must give how many days' notice before entering a tenant's unit for non-emergency repairs?
- In Alabama, if a tenant fails to pay rent, the landlord may begin eviction proceedings after giving the tenant a written notice to pay or vacate within:
- A property manager in Alabama who collects rents and manages properties for others must hold:
- The Americans with Disabilities Act (ADA) requires Alabama commercial property owners to:
- A property manager receives a security deposit from a new tenant in Alabama. The deposit must be:
- Which lease type provides the most predictable income for an Alabama property owner?
- In Alabama, a month-to-month tenancy can typically be terminated by either party with how much notice?
- A gross lease in Alabama means the tenant pays:
- In Alabama, a lease for more than one year must be in writing to be enforceable under the:
- An Alabama property manager's primary duty is to:
- A property manager's PRIMARY fiduciary responsibility is to:
- Under the Alabama Landlord-Tenant Act, how much notice must a landlord typically give before entering a rental unit for non-emergency repairs?
- A gross lease is one in which:
- A percentage lease is most commonly used in:
- Under the Alabama Landlord-Tenant Act, if a landlord fails to make required repairs within a reasonable time after written notice, the tenant may:
- A net lease requires the tenant to pay:
- A property manager's PRIMARY duty is to:
- In Alabama, a property manager who negotiates leases and collects rent on behalf of an owner typically must have:
- A gross lease requires the tenant to pay:
- A net lease (NNN) requires the tenant to pay:
- What is the purpose of a property management agreement?
- The management fee for a property manager is commonly calculated as:
- The Alabama Uniform Residential Landlord and Tenant Act (URLTA) governs:
- Under the Alabama URLTA, a landlord must return a tenant's security deposit within how many days after the tenant vacates?
- An eviction proceeding in Alabama for non-payment of rent typically begins with:
- A percentage lease is commonly used in:
- A property manager who discovers that a rental property has a serious habitability issue (such as no heat in winter) must:
- The 'implied warranty of habitability' in Alabama residential rentals means:
- Under the Alabama URLTA, a landlord's failure to make necessary repairs after written notice from the tenant may allow the tenant to:
- What is a 'CAM charge' in commercial property management?
- Which of the following is a responsibility of the property manager related to fair housing?
- A lease that automatically renews for successive periods until one party provides notice to terminate is called a:
- A 'tenancy at sufferance' arises when:
- A 'lease option' (lease with option to purchase) gives the tenant the:
- An Alabama property manager who receives a commission for referring a tenant to a specific moving company must:
- A property manager who collects rents and maintains records on behalf of an owner acts as the owner's:
- Under the federal Fair Housing Act, a landlord may NOT refuse to rent to an applicant because of their:
- The management agreement between a property manager and an owner is a type of:
- Under a triple net (NNN) lease, the tenant is responsible for paying:
- Security deposits in Alabama must be:
- Under Alabama's Uniform Residential Landlord and Tenant Act, how many days does a landlord have to return a tenant's security deposit after move-out?
- The operating expense ratio (OER) is calculated as:
- Constructive eviction occurs when:
- A property manager notices the roof is leaking and needs repair. Without specific authorization for this expense, the manager should:
- In Alabama, a residential lease for more than one year must be:
- A percentage lease commonly used in retail space requires the tenant to pay:
- Which of the following is a landlord's right regarding entry into a tenant's rented unit in Alabama?
- An estate at will in a landlord-tenant relationship means:
- A holdover tenant (tenant at sufferance) is one who:
- Which type of eviction proceeding is used when a tenant is in breach of the lease terms in Alabama?
- The implied warranty of habitability requires Alabama landlords to:
- An Alabama residential landlord may NOT deduct from a security deposit:
- A net operating income (NOI) statement for a rental property does NOT include:
- A property manager in Alabama who also holds a real estate salesperson license may manage property only under the supervision of:
- An Alabama landlord who retaliates against a tenant for reporting a housing code violation by raising the rent may be found to have committed:
- A commercial lease that adjusts rent annually based on the Consumer Price Index (CPI) is an example of a(n):
- An Alabama landlord must provide a tenant with what minimum notice before entering the leased unit for non-emergency repairs?
- A management fee for residential property management in Alabama is typically expressed as:
- A tenant who sublets their rental unit without the landlord's permission is:
- When calculating net operating income for an apartment building, which of the following is deducted from effective gross income?
- In Alabama, if a residential tenant fails to pay rent, the landlord must first provide written notice to pay or quit. Typically this notice period is:
- Which type of lease does NOT expire at the end of a fixed term but continues from period to period until terminated?
- A property manager who collects rents but fails to remit them to the owner is:
- In Alabama, a landlord who fails to return a security deposit within 35 days after the tenant vacates, without providing an itemized statement, may be liable for:
- A lease that permits the landlord to pass through increases in operating expenses to the tenant is called a(n):
- The break-even occupancy rate for a rental property tells the investor:
- A property manager who negotiates a lease for a commercial tenant without the owner's knowledge or authorization is acting:
- A flat rate management fee versus a percentage-based fee differs in that a flat rate:
- Under Alabama's residential landlord-tenant law, a landlord must provide notice of intent to terminate a month-to-month tenancy at least:
- A commercial lease with a base rent plus operating expense pass-throughs is commonly called a(n):
- The physical vacancy rate for a building measures:
- When a tenant assigns their lease to another party, the original tenant:
- The Americans with Disabilities Act (ADA) requires commercial property owners to:
- A residential property manager in Alabama who collects rent from tenants and remits it to the owner is acting as the owner's:
- The Americans with Disabilities Act requires commercial properties open to the public to provide accessible parking spaces in a ratio of approximately:
- A net lease where the tenant pays base rent plus property taxes, insurance, AND maintenance and repairs is called a(n):
- When a tenant sublets property to a subtenant, the primary (original) tenant becomes a(n):
- A tenant's right to 'quiet enjoyment' in Alabama means:
- Under Alabama law, a tenant who abandons property before the lease expires:
- A property manager's duty to the property owner includes:
- An Alabama commercial tenant who exercises a lease renewal option must typically:
- A lease provision that requires the tenant to return the property in the same condition as received, with allowance for normal wear and tear, is known as a:
- Which of the following is typically NOT included in the operating expenses used to calculate NOI?
Land Use & Zoning
76 questions- In Alabama, the power of local governments to regulate land use through zoning is derived from:
- A property owner in Alabama wants to use their residentially-zoned property for a small home-based business. They would apply for a:
- A nonconforming use in Alabama is a property use that:
- A variance in Alabama zoning allows a property owner to:
- In Alabama, a subdivision plat must be approved by the local:
- Riparian rights in Alabama give property owners adjacent to a non-navigable stream the right to:
- A buffer zone in Alabama zoning is used to:
- In Alabama, eminent domain proceedings are also known as:
- A deed restriction limiting a property to single-family residential use in Alabama is an example of a:
- A special exception (conditional use permit) in Alabama zoning is different from a variance because:
- Alabama's Coastal Area Management Program regulates development:
- A nonconforming use in zoning law refers to:
- Which government power allows a city to regulate land use through zoning ordinances?
- A developer wants to build a church in a residentially zoned area. They would need to apply for a:
- A buffer zone in zoning typically serves to:
- A developer who wants to deviate from specific zoning requirements (like setback rules) without changing the zone itself would apply for a:
- Spot zoning is generally considered illegal because:
- Which government power allows municipalities to regulate land use through zoning ordinances?
- A legal nonconforming use is:
- A variance in zoning law allows a property owner to:
- Eminent domain is the government's power to:
- A comprehensive (master) plan is best described as:
- What is a buffer zone in zoning?
- Deed restrictions (restrictive covenants) differ from zoning in that they are:
- When a local government acquires private land through eminent domain, the process is called:
- A special-use permit (conditional use permit) is required when:
- Spot zoning refers to:
- A 'planned unit development' (PUD) differs from standard residential zoning because:
- A developer submits a subdivision plat for approval. The local government requires the developer to dedicate land for streets and a park. This requirement is known as:
- When property is taken by the government through eminent domain, the owner is entitled to:
- A regulation that requires buildings to be set back a minimum of 25 feet from the front property line is called a:
- What does 'floor-area ratio' (FAR) control in zoning?
- Which government body in a typical Alabama municipality is responsible for hearing variance and special-use permit applications?
- A 'taking' in constitutional law refers to:
- What is the difference between a subdivision plat and a survey?
- An 'impact fee' charged by local governments to developers is used to:
- Which of the following BEST describes 'mixed-use zoning'?
- A variance in zoning law is best described as:
- A nonconforming use is a land use that:
- Which governmental power allows a municipality to regulate land use through zoning?
- A conditional use permit (special use permit) allows a property to:
- In Alabama, the taking of private property for public use under eminent domain requires:
- A buffer zone in land use planning is used to:
- A deed restriction that runs with the land and limits how the property may be used is called a:
- Inclusionary zoning policies typically require developers to:
- The process by which the government acquires private property through prolonged unauthorized government use, requiring no compensation, is called:
- A planned unit development (PUD) typically allows:
- An environmental impact statement (EIS) is generally required for:
- A building setback requirement specifies:
- A downzone occurs when a local government changes a property's zoning to:
- The police power of government allows it to do which of the following without compensating property owners?
- A regulatory taking occurs when:
- Floor-area ratio (FAR) is defined as:
- In Alabama, who has authority to adopt local zoning ordinances?
- An agricultural exemption in Alabama allows farmland to be assessed at:
- Subdivision regulations in Alabama typically require a developer to:
- A general plan (comprehensive plan) is used by local governments to:
- In Alabama, a landowner whose property is taken through eminent domain has the right to challenge:
- Transfer of development rights (TDR) programs allow a landowner to:
- A density bonus in zoning is typically offered to developers who:
- Which of the following is NOT typically a function of a local zoning board of adjustment?
- In Alabama, the minimum lot size requirement in a zoning ordinance is primarily intended to:
- A 'taking' under the Fifth Amendment of the U.S. Constitution refers to:
- An overlay zone in planning is:
- Interstate land sales in Alabama for 25 or more unimproved lots may be regulated by:
- Restrictive covenants in a subdivision that conflict with local zoning ordinances are resolved by applying:
- An easement of way across a neighbor's property that is necessary for access to a landlocked parcel is called a(n):
- A prescriptive easement is obtained by:
- Covenants, conditions, and restrictions (CC&Rs) are primarily enforced by:
- A moratorium on development imposed by a local government in Alabama would temporarily:
- Which of the following actions would require a building permit in most Alabama jurisdictions?
- A planned development that mixes residential, commercial, and open space is known as a:
- In Alabama, a property owner who believes a zoning decision affecting their property was in error may appeal to the:
- Mixed-use zoning allows a property to be used for:
- Which of the following best describes the concept of 'taking' as it applies to Alabama zoning?
- Development impact fees charged by Alabama municipalities are designed to:
Environmental
75 questions- Which federal law requires sellers to disclose known lead-based paint hazards in homes built before 1978 in Alabama?
- CERCLA (Superfund) affects Alabama real estate by:
- Which of the following environmental hazards is most commonly found in homes built before 1978 in Alabama?
- Radon is a concern in Alabama real estate because it:
- An Alabama property located in a Special Flood Hazard Area (SFHA) requires:
- An underground storage tank (UST) on an Alabama property is most likely to contain:
- In Alabama, asbestos is most commonly found in which type of property?
- A Phase I Environmental Site Assessment in Alabama is conducted to:
- Under CERCLA (Superfund), who can be held liable for environmental cleanup costs?
- Asbestos-containing materials are most dangerous when they are:
- The presence of lead-based paint must be disclosed in residential properties built before:
- A Phase I Environmental Site Assessment primarily involves:
- Radon gas enters homes primarily through:
- Underground storage tanks (USTs) containing petroleum products are regulated primarily under:
- Mold in a residential property is most likely to develop when there is:
- Which federal law governs the cleanup of contaminated sites and holds property owners liable for hazardous waste?
- What is radon, and why is it a concern in residential real estate?
- When must sellers disclose the presence of lead-based paint under federal law?
- Asbestos in a building is MOST hazardous when:
- An underground storage tank (UST) on a property may create environmental liability because:
- What is a Phase I Environmental Site Assessment used for?
- Wetlands on a property are significant in real estate because:
- Which of the following is the BEST description of 'mold' as a real estate concern?
- Urea-formaldehyde foam insulation (UFFI) is a concern because:
- Which of the following substances was commonly used in building materials before 1981 and requires special handling during demolition or renovation?
- Which Alabama agency is primarily responsible for regulating environmental quality, including hazardous waste?
- A Brownfield is best described as:
- The Superfund law (CERCLA) imposes liability for hazardous waste cleanup on which parties?
- The EPA's safe level for radon in indoor air is below:
- Which of the following is TRUE regarding the seller's disclosure of environmental hazards in Alabama?
- Carbon monoxide (CO) is a concern in homes primarily because:
- A property located in a Special Flood Hazard Area (SFHA) must obtain flood insurance if:
- Lead exposure from lead-based paint is MOST dangerous to:
- Which of the following situations MOST likely requires an environmental impact assessment before a real estate development can proceed?
- The Clean Water Act Section 404 regulates:
- Which federal law governs the cleanup of contaminated hazardous waste sites and established the Superfund?
- Radon gas is most commonly found in:
- Lead-based paint disclosure is required under federal law for homes built before:
- A Phase I Environmental Site Assessment is primarily designed to:
- Asbestos-containing materials (ACMs) in a home are generally considered most hazardous when they are:
- Underground storage tanks (USTs) are regulated primarily because of the risk of:
- The Residential Lead-Based Paint Hazard Reduction Act requires that buyers be given how many days to conduct a lead paint inspection?
- Wetlands regulation in Alabama is primarily governed by:
- CERCLA's 'innocent landowner' defense protects a buyer from Superfund liability if the buyer:
- Mold in a home is primarily a concern because it can:
- Polychlorinated biphenyls (PCBs) are hazardous chemicals commonly associated with:
- Under CERCLA, which parties can be held liable for cleanup of a contaminated property?
- A property located in a FEMA Special Flood Hazard Area (SFHA) has at least a ___% chance of flooding in any given year.
- A seller of a property in a FEMA flood zone must disclose this fact to the buyer:
- Which of the following statements about radon is true?
- The Toxic Substances Control Act (TSCA) regulates which of the following?
- A due diligence environmental Phase II Assessment involves:
- LUST in environmental context refers to:
- The primary health hazard associated with exposure to friable asbestos is:
- A brownfield site is best described as:
- The National Flood Insurance Program (NFIP) requires flood insurance for properties in Special Flood Hazard Areas when:
- Which of the following environmental issues is associated with older homes and can cause intellectual development issues in children?
- In Alabama, who is responsible for remediating contaminated property under CERCLA?
- A seller in Alabama is aware that the property has a history of underground fuel storage. What is the best course of action?
- The EPA action level for radon that triggers remediation recommendations in homes is:
- Electromagnetic fields (EMFs) near high-voltage power lines are an environmental concern because some studies suggest:
- Which of the following is the primary purpose of a Phase I Environmental Site Assessment?
- Carbon monoxide is a hazardous indoor air pollutant that is:
- A listing agent who is aware that the neighborhood near a listed property has elevated radon levels should:
- The Safe Drinking Water Act regulates:
- Which federal act requires sellers and landlords to disclose the presence of known lead-based paint hazards in pre-1978 housing?
- A property owner in Alabama who discovers an oil spill on their property from an adjacent property's leaking underground storage tank may seek remedies under:
- The Clean Air Act regulates which environmental concerns relevant to real estate?
- Indoor air quality issues in a home that can be addressed with improved ventilation include:
- Which of the following is a potential indicator that a property may have hazardous waste concerns during due diligence?
- Methane gas hazards are most commonly associated with properties near or on:
- A real estate agent's environmental disclosure obligations generally include:
- Which statement about asbestos is most accurate for a real estate professional?
- A Superfund site (CERCLA National Priorities List site) near a residential neighborhood may affect property values because:
- Naturally Occurring Radioactive Materials (NORM) are a potential environmental concern associated with:
Trust Funds
68 questions- In Alabama, a qualifying broker's trust account must be reconciled:
- Which of the following is NOT an acceptable reason for a broker to withdraw funds from an Alabama trust account?
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?
- In Alabama, a qualifying broker who manages property for owners must maintain:
- Conversion of trust funds in Alabama means:
- In Alabama, an earnest money deposit held by a real estate broker must be:
- Conversion of client funds in a trust account occurs when a broker:
- Which of the following is NOT a permissible use of an Alabama broker's trust account?
- In Alabama, the term for a broker's obligation to keep client funds separate from personal or business operating funds is:
- Which of the following BEST describes 'commingling' of funds?
- 'Conversion' of trust funds occurs when a broker:
- Under AREC rules, how quickly must a broker deposit earnest money or other trust funds after receipt?
- A broker who holds earnest money from a buyer and the deal falls through due to a contract dispute must:
- A qualifying broker is responsible for the trust account actions of all licensees in their firm. This is an example of:
- Interest earned on Alabama broker trust accounts typically:
- Which of the following would be considered an acceptable reason to withdraw funds from a trust account?
- A broker maintains a trust account with a balance of $50,000 representing multiple clients' earnest money deposits. The broker should:
- AREC has the authority to audit a broker's trust account:
- A broker receives an earnest money check from a buyer but the seller has not yet accepted the offer. The broker should:
- If a disputed earnest money situation cannot be resolved between buyer and seller, the broker may interplead the funds. 'Interpleading' means:
- When a real estate transaction closes, how should the earnest money be handled?
- Alabama regulations require brokers to maintain trust account records for at least:
- A property manager collects monthly rents of $50,000 on behalf of property owners. These funds must be:
- AREC's trust account audit authority is intended primarily to:
- Which of the following trust account activities would constitute commingling?
- A security deposit collected from a tenant by a property manager in Alabama must be:
- If a broker fails to maintain proper trust account records, AREC may:
- A real estate broker's operating account is used for:
- In Alabama, a real estate broker's trust (escrow) account must be:
- Commingling in real estate refers to:
- Conversion of trust funds occurs when a broker:
- When must an Alabama broker deposit earnest money received from a buyer into the trust account?
- A broker may disburse funds from a trust account based on:
- In Alabama, who is ultimately responsible for ensuring that client funds are properly maintained in the trust account?
- How long must Alabama brokers retain trust account records?
- Which of the following is permissible in an Alabama broker's trust account?
- When a buyer's offer is rejected by the seller, the earnest money should be:
- An Alabama broker may deposit their own funds into a trust account in which scenario?
- Which of the following is the correct treatment of interest earned on an Alabama broker's trust account?
- If a buyer's offer is accepted by the seller and the buyer's check for earnest money is returned by the bank as NSF (non-sufficient funds), the broker should:
- An Alabama broker receives rental income on behalf of a property owner. These funds must be deposited into:
- After a real estate closing in Alabama, how quickly should trust funds be disbursed?
- Which of the following would be considered a violation of Alabama trust account rules?
- When there is a dispute over earnest money between a buyer and seller in Alabama, the broker should:
- A broker's trust account must be reconciled:
- Under Alabama law, AREC may audit a broker's trust account:
- A real estate salesperson receives cash earnest money directly from a buyer. The salesperson should:
- If a listing expires without a sale, earnest money that was deposited should be:
- An Alabama broker who knowingly issues a check from the trust account with insufficient funds to cover it may face:
- When a broker receives a post-dated check as earnest money, the best practice is to:
- What is an IOLTA account in the context of real estate trust accounts?
- An Alabama broker receives security deposits from tenants managed under a property management agreement. These funds must be:
- A broker who uses earnest money from one transaction to fund a shortfall in another transaction's escrow is guilty of:
- In Alabama, the trust account ledger must reflect:
- When an earnest money deposit is forfeited by a defaulting buyer, how are the funds typically distributed?
- An Alabama broker may make disbursements from the trust account based on:
- If AREC discovers that a broker has been consistently depositing personal funds into the trust account in excess of what is needed for bank fees, AREC would likely characterize this as:
- An Alabama broker's trust account is subject to AREC examination:
- An escrow account for a real estate transaction in Alabama typically holds which of the following funds?
- If an Alabama broker has a dispute about the disbursement of earnest money and cannot resolve it with the parties, the broker should:
- Alabama regulations require a broker to maintain their trust account in a financial institution located in:
- A property management company collects first and last month's rent plus a security deposit from a new tenant. Which portion(s) must go into a trust account?
- If a buyer's check bounces after being deposited into the trust account, the broker should NOT:
- After a real estate closing in Alabama, the broker should disburse the earnest money trust funds:
- Which of the following is the best description of a broker's fiduciary duty regarding trust funds?
- A broker in Alabama may maintain a single trust account for multiple clients provided:
- An Alabama broker who fails to maintain proper trust account records may be subject to which penalty by AREC?
- In Alabama, a broker found guilty of conversion of trust funds may face which consequences?
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