Alabama License Law
What is the maximum dollar amount that can be paid from the Alabama Real Estate Recovery Fund for a single transaction?
A$10,000
B$25,000
C$50,000✓ Correct
D$100,000
Explanation
Alabama's Real Estate Recovery Fund has a maximum payment of $50,000 per transaction. There is also a lifetime cap per licensee.
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Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
State-Specific Concepts
License Law
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