AREC exam 2024/2025 Questions with 100% Verified Correct Answers Woodrow helps his neighbor sell his home by assisting with negotiations. He receives no compensation for his assistance. Based on this transaction, Woodrow _____ - Correct Answer Doesn't need a real estate license What must you have to apply as a real estate salesperson in Alabama - Correct Answer A sponsoring broker Daisy holds a real estate license in Mississippi and looking to obtain a reciprocal license in Alabama.Which requirement must she meet? - Correct Answer Provide her licensing history to the commission within 120 days before her reciprocal license is issued.Lucinda is 25 and licensed in Alabama. She has been actively engaged in real estate for the past three years and has taken 60 hours of broker pre-licensing coursework. She used to be licensed in Florida, but her license there was revoked four years ago. She also has five unpaid parking tickets. Assuming she passes her licensing exam, is she qualified to be a broker? - Correct Answer Maybe, if the commission approves her application.Alabama broker Mandy has presented the Real Estate Brokerage Services Disclosure form to consumer Kyla and asked Kyla to sign it. What's the purpose of Kyla's signature on this form? - Correct Answer To acknowledge that Mandy's presented her with this form Which of the following actions performed by these licensed salespersons is a common real estate violation? - Correct Answer Benjamin places a lock box in an inconspicuous location on the sellers' property without their permission.Alabama licensee Terrence can conduct a lottery to persuade people to do business with him under which, of any, of the following circumstances? - Correct Answer He can't conduct a lottery under any of these circumstances. Holding these types of lotteries is illegal in Alabama.A buyer client is preparing an offer on a property. He wants to make sure his offer stands out above all others and is accepted, so he discusses waiving the inspection contingency. What should the agent do? - Correct Answer Encourage the buyer to get an inspection, and if he still wants to waive it, put it in writing that you advised against waiving the inspection and have him sign. 1 / 2
In addition to serving as the listing agent for several clients, your own house is also on the market.You receive a call from another licensee who wants to show her buyer client your house. What must you immediately disclose to the buyer's agent and buyer? - Correct Answer You own the property.Which of the following actions might be considered a red flag signaling mortgage fraud? - Correct Answer Your buyer requests a specific appraiser.Which of the following is true about subagency in Alabama? - Correct Answer Subagents owe their client the same duties that the agent owes that client.Which area of real estate law covers how an agency relationship is created and the duties of an agent to the principal? - Correct Answer The law of agency Which one of the following actions would be considered a real estate violation? - Correct Answer Hailey ran out of copies of the brokerage engagement form, so she drafted a copy on a blank sheet of paper.Licensee Bert's seller client asks him not to tell prospective buyers that he's selling his house because he's lost his job and can't continue to afford the mortgage payments. Should Bert obey him? - Correct Answer Yes, because this is a lawful instruction, and this information should be kept confidential.Which of the following is true about license renewal notifications? - Correct Answer AREC mails renewal forms to licensees starting around July 15 of even-numbered years.Broker Joseph tells his client that a property is zoned as residential even though he knows it's zoned as commercial. This violation is an example of ______. - Correct Answer Making a substantial and willful misrepresentation LuAnn is selling some property, and she wants broker Richard to represent her. He explains that she needs to sign a brokerage agreement, and she asks, "What does it mean when I sign this?" What's the best answer Richard can give? - Correct Answer "It means that you understand and accept the conditions of our agency relationship." Should the broker end up in litigation, any trust funds not safely tucked away in a trust account could be ______. - Correct Answer Frozen
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