Alabama License LawIntermediateAlabama Exam
Under Alabama license law, which of the following is grounds for license revocation?
AFailing to close a transaction
BMisrepresentation or fraud in a real estate transactionCorrect
CRepresenting both buyer and seller with proper disclosure
DAdvertising a property at a price below market value
Why Misrepresentation or fraud in a real estate transaction Is Correct
Answer B: Misrepresentation or fraud in a real estate transaction
Misrepresentation, fraud, dishonest dealing, and commingling of funds are all grounds for license suspension or revocation under Alabama law. Dual agency with proper disclosure is permitted.
Key Alabama License Law Terms in This Question
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
State-Specific Concepts
License Law
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