Free Alabama Real Estate Salesperson Exam Flashcards

The trade-fixture rule. A tenant may generally remove a business fixture before the tenancy ends if removal does not cause substantial damage; ordinary fixtures normally remain with the real estate.

Non-homogeneity, also called uniqueness. Location, physical features, and legal attributes make every parcel distinct, even when nearby lots appear similar.

It follows directions and distances around the parcel and returns to the point of beginning. Failure to close back to that point signals an incomplete description.

The benefit of an easement appurtenant. The benefited dominant estate and burdened servient estate normally carry their respective rights and burdens to later owners.

Ava holds a life estate; Ben holds a vested remainder. If the grantor had kept the future interest instead, it would be a reversion.

The share passes through the deceased owner's estate by will or intestacy. It does not automatically pass to the other tenants in common.

Lien priority has statutory exceptions. Although earlier recording usually establishes priority, real estate tax liens commonly receive superior priority by law.

Constructive notice. Recording places the public on legal notice of the instrument; actual notice means the person truly knew of it.

It is market price—the amount actually paid. Market value is an opinion of the most probable price under normal, informed, arm's-length conditions, so the two can differ.

Substitution. A rational buyer generally will not pay more for a property than the cost of acquiring a comparable substitute without undue delay.

Functional obsolescence comes from a deficiency or outdated feature within the property, such as a poor layout. External obsolescence comes from outside the property, such as nearby noise or adverse land use.

Value = NOI ÷ capitalization rate. Rearranged, NOI = value × rate and rate = NOI ÷ value; the rate must be written as a decimal in the calculation.

Performance. That structure is unilateral: one party promises in exchange for the other party's completed act. A bilateral contract exchanges promises.

A voidable contract. It remains effective unless the protected party rescinds it; a void contract has no legal effect from the start, while an unenforceable agreement may be valid but lacks a judicial remedy.

The change creates a counteroffer, which rejects the original offer and proposes new terms. The buyer must accept the counteroffer for a contract to form.

Equitable title. The seller generally retains legal title as security until closing, subject to the contract and applicable law.

Consideration makes the owner's promise to keep the offer open enforceable for the option period. The optionee receives a right to buy but is not obligated to exercise it.

Ratification adopts the act as though it had been authorized, provided the principal had the relevant facts and accepted the act in a legally effective manner.

Confidentiality. An agent generally must continue protecting a former client's confidential information unless disclosure is authorized or required by law.

An exclusive-agency listing may let the seller avoid a commission for a buyer found without broker help. An exclusive-right-to-sell listing generally earns the agreed commission regardless of who finds the buyer.

The broker keeps the amount above the seller's required net, so the broker's compensation grows as the seller receives proportionally less. Many jurisdictions restrict or prohibit this arrangement.

Households with a person under 18 living with a parent, legal custodian, or designee, plus pregnant persons and people securing custody of a child. A qualifying housing-for-older-persons exemption may apply.

Price fixing. Competitors must independently establish commissions and other service terms; jointly setting a floor or standard price restrains competition.

The seller must provide the federal lead warning and available reports, disclose known lead hazards, and give the buyer the required opportunity to conduct a lead inspection or risk assessment unless properly waived.

CERCLA can impose strict liability on designated potentially responsible parties. Liability may arise from status or relationship to the site, subject to statutory defenses and protections.

To review records, inspect the site, and conduct interviews for signs of recognized environmental conditions. It is primarily an inquiry; sampling and laboratory testing are generally Phase II work.

A disclosure reports what the seller knows; it is not a professional evaluation of all systems or concealed conditions. An inspection independently examines observable conditions within its scope.

The promissory note is the promise to repay and evidence of the debt. The mortgage is the security instrument that places a lien on the real estate.

80%. LTV = loan amount ÷ lender-used property value: $192,000 ÷ $240,000 = 0.80.

TILA and Regulation Z require disclosure of credit terms such as APR and finance charge. RESPA regulates settlement-service practices, including referral kickbacks, and works with TILA through the integrated Loan Estimate and Closing Disclosure.

5 acres. Area is 217,800 square feet, and 217,800 ÷ 43,560 square feet per acre = 5.

$600,000. Divide NOI by the rate expressed as a decimal: $48,000 ÷ 0.08.

The buyer. Allocate the closing date to the party specified, then count each party's days using the question's required 360- or 365-day method.

AREC administers and enforces the state's real estate licensing law and rules, including licensing, investigations, hearings, and discipline. A majority of its nine members forms a quorum for Commission business.

The applicant must be at least 19, show high school graduation or a GED, and show bona fide residency in any U.S. state. Separate legal-presence, character, and prior-license-history requirements also apply.

Renew by August 31 to avoid the $150 late penalty and complete 15 AREC-approved CE hours by September 30: 3 hours of Risk Management plus 12 elective hours. Missing the September 30 requirements places the license on inactive status October 1.

Complete the course and obtain the original license within the first six months of licensure to remain active. Complete the process within the first year of licensure or the temporary license lapses. These are the rules in force before October 1, 2028.

No. Inactive status preserves a license record but does not authorize licensed activity. The licensee must satisfy AREC's activation requirements and be properly licensed to a company before practicing.

The qualifying broker. That broker is responsible for supervising the company's licensed activity and the conduct of people working under the brokerage within the scope of license law.

Each separate location needs its own company or branch-office license and must be directed by a qualifying broker licensed at that address. One person may not serve as qualifying broker at more than one location.

Actual or compensatory damages suffered in Alabama because of a broker's or salesperson's violation of license law or AREC rules. The fund does not pay interest or court costs, and statutory exclusions and payment caps apply.

A 10-day clock. The licensee must notify AREC in writing by certified mail and include the required charging document, summons, or complaint; later verdicts, dismissals, and covered judgments also trigger 10-day notice duties.

Deliver the funds to the qualifying broker immediately. The qualifying broker is responsible for proper deposit and accounting in a separate federally insured account at an Alabama financial institution unless expressly relieved in writing.

The licensee acts as a transaction facilitator, not an agent or fiduciary. Agency cannot be implied; it requires a written bilateral agency agreement, and RECAD disclosure duties still apply.

Disclose it to the potential purchaser or lessee. Misrepresenting or failing to disclose a known latent structural or other material defect is grounds for discipline.

No. License law prohibits paying or dividing profit, compensation, commission, or fees with anyone other than a licensee or multiple listing service, subject to the statute's limited business-entity provision.

The qualifying broker's or company's licensed name must appear prominently. Its font must be equal to or larger than any other name, text, or logo, except generic terms such as “for sale” or “for lease.”

That is a prohibited net listing. It makes the broker's compensation the excess above the owner's net and creates a conflict with the broker's duties.

It must state a fixed expiration date, and the principal must receive a copy. Omitting the fixed date or failing to leave a copy is disciplinary conduct.

The licensee must disclose to the owner the intention to acquire the interest, whether directly or indirectly. Failing to disclose that personal acquisition interest is a license-law violation.