Alabama License LawIntermediateAlabama Exam
Under AREC regulations, a real estate licensee must disclose their licensed status when:
AOnly when acting as a broker
BBuying, selling, or leasing property for their own accountCorrect
COnly when representing another person, under standard practice
DOnly on commercial transactions
Why Buying, selling, or leasing property for their own account Is Correct
Answer B: Buying, selling, or leasing property for their own account
Alabama licensees must disclose their licensed status when purchasing, selling, or leasing property in which they have a personal financial interest.
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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.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
EasementA non-possessory right to use another person's land for a specific purpose.
Life EstateA freehold interest in real property that lasts only for the duration of a specified person's life.
State-Specific Concepts
AREC Regulation
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