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Alabama Real Estate Post-License Exam with complete verified solutions
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Alabama Real Estate Post-License Exam with complete verified solutions
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Alabama Real Estate Post-License Exam with complete
verified solutions 2025-2026
Agency law regulates relationships between whom? - answer -
Agents & principals
- Agents & third parties
- Principals & the third parties
When are licensees required to present the Real Estate Brokerage
Services Disclosure Form to consumers (buyers and sellers)? -
answer As soon as reasonably possible (the law doesn't require
them to sign, but licensees should encourage them to)
What relationships must be explained to consumers in the Real
Estate Brokerage Services Disclosure Form? - answer - Transaction
brokerage
- Single agency
- Limited consensual dual agency
List three duties of a licensee to all the parties to a real estate
transaction when serving as a transaction broker. - answer -
Provide brokerage services to all parties to the transaction honestly
and in good faith.
- Exercise reasonable skill and care in providing brokerage services
to all parties.
- Present all written offers in a timely and truthful manner when
assisting a party in the negotiation of a real estate transaction.
,What duties does a licensee owe to a buyer client? - answer -
Loyally represent the best interests of the client by placing the
interests of the client ahead of the interests of any other party.
- Disclose to the client all information known by the licensee that is
material to the transaction and not discoverable by the client
through reasonable investigation and observation.
- Fulfill any obligation required by the agency agreement and any
lawful instructions of the client that are within the scope of the
agency agreement.
What is meant by a limited consensual dual agency? - answer An
agency relationship where the real estate brokerage company
represents both the buyer & the seller in a transaction
What is the advantage of limited consensual dual agency? - answer
Broader marketing opportunities than single agency arrangements.
With this type of transaction, salespeople can show houses of
owners that they represent as agents to their buyer clients.
What is typically reported as the biggest complaint in real estate? -
answer Lack of communication
What kind of body language should licensees exhibit when
communicating with buyers? - answer - Confident handshake but
not overly firm
- Eye contact when talking or listening
- Refrain from crossing legs/arms, look open
- Lean towards them to show interest
Because Alabama is a caveat emptor state, what is imperative for
buyers to know and understand before making a home purchase? -
answer It's imperative that purchasers ask questions, explore,
learn about, and inspect the intended investment as much as
,possible before completing the transaction. The ultimate task of
discovery falls completely on the buyers.
What is the difference between a general home inspection and a
HVAC inspection? - answer A general home inspection is a non-
invasive visual inspection of accessible areas of the home that
includes a general inspection of the heating and cooling system, but
may not reveal every defect that exists.
An HVAC inspection is done by a residential HVAC expert and is
much more thorough.
What does a well inspection include? - answer - A flow test
- An examination of the equipment
- A test for bacteria, nitrates, minerals, water hardness, & other
concerns
List the other home buying procedures a licensee should explain to
a buyer. - answer - Seller property disclosures
- Home warranties
- Surveys
- Title insurance
- Walk-through
- Closing process
What is the difference between pre-qualification and pre-approval? -
answer Pre-qualification is an informal process that a licensee or a
lender can do to determine how much of a mortgage a buyer can
afford. If done by a lender, the lender is not committing to making
the loan.
Pre-approval is a formal process done by a lender that goes through
most of the steps of a loan application process, after which the
lender will give the buyer a letter saying how much the buyer is
approved to borrow.
, What are the two main classifications for mortgages? - answer -
Fixed-rate mortgage
- Adjustable-rate mortgage (ARM)
What happens when borrowers make extra payments to principal on
a fixed-rate mortgage versus making extra payments on an ARM? -
answer When borrowers make fixed extra payments to principal on
a fixed rate mortgage, they shorten the term but don't change the
payment.
When they make fixed extra payments to principal on an ARM, they
reduce the payment on rate adjustment dates, but don't change the
term.
How can uninsured conventional loans be insured? - answer With a
private mortgage insurance (PMI) policy
How is the Mortgage Payment Expense to Effective Income ratio
calculated? - answer The lender will take the total mortgage
payment (principal and interest, escrow deposits for taxes, hazard
insurance, mortgage insurance premium, homeowners' dues, etc.)
and divide that amount by the borrower's gross monthly income.
The maximum ratio to qualify is 31%.
What are the two major reason why the FHA 203(b) loans are most
popular? - answer FHA 203(b) loans allow individuals to finance up
to 97% of their home loan and is also the only loan in which 100% of
the closing costs can be a gift from a relative, non-profit, or
government agency.
What document must a veteran provide that shows the amount of
loan entitlement available to him or her? - answer A Certificate of
Eligibility
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