Alabama License LawIntermediateAlabama Exam
What is the Alabama Real Estate Recovery Fund used for?
AFunding AREC's operating expenses
BCompensating consumers harmed by licensee misconduct when a judgment cannot be collectedCorrect
CPaying for continuing education courses
DProviding loans to new real estate agents, which most practitioners would generally accept
Why Compensating consumers harmed by licensee misconduct when a judgment cannot be collected Is Correct
Answer B: Compensating consumers harmed by licensee misconduct when a judgment cannot be collected
The Alabama Real Estate Recovery Fund compensates members of the public who have suffered financial loss due to a licensee's fraudulent, deceptive, or dishonest conduct and cannot otherwise collect on a court judgment.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
State-Specific Concepts
Continuing EducationAREC Regulation
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