Violations
Failure to provide the AREC with any requested information in the required time frame is a violation. What is the required time frame?
24 hours
5 days
Within a reasonable time
30 days
within a reasonable time
How is the Recovery Fund funded?
By the Recovery Fund fee collected from each license applicant.
Who is the trustee for a trust account?
The client who owns the funds
The bank where the funds are held
The qualifying broker
The licensee who collected the funds
the qualifying broker
Licensees are required to keep their client's confidential information confidential even if
disclosing the information is required by law.
the client authorizes the disclosure in writing.
the information would help the buyer decide whether or not to purchase the property.
the information was obtained through public knowledge.
the information would help the buyer decide whether or not to purchase the property.
When is an agency relationship created?
Upon initial contact with customer
When the listing agreement is recorded
When the relationship agreement is signed
After the non-agency relationship has been disclosed
When the relationship agreement is signed
Which of the following violations could result in criminal charges being bought against the licensee?
Accepting compensation for anyone other than the qualifying broker
Offering a lottery
Failure to provide estimated closing statements
Compensating an unlicensed individual for performing real estate acts that require licensure
offering a lottery
How much of the $30 Recovery Fund fee collected from each license applicant is deposited into the state treasury for the AREC Revenue Fund?
none
The rules of interpleader
assign a mediator to resolve trust fund disbursement disagreements.
force trust fund disbursement disagreements to be resolved by the courts.
state that trust fund disbursements must be set in writing prior to transaction.
designate the qualifying broker as the individual to disburse trust funds.
force trust fund disbursement disagreements to be resolved by the courts.
If a seller fails to disclose significant property defects out of ignorance, the seller is most likely guilty of
negligent misrepresentation.
What is the difference between a customer and a client?
A client has signed an agreement for specific services
Failure to disclose the true terms of a contract is a violation of the law, but the law requires the disclosure to be to whom?
Any interested party to the contract
Which of the following constitutes illegal commingling?
Depositing funds from different transactions into the same trust account.
Depositing funds from different clients into the same trust account.
Depositing business funds to cover bank charges into a client trust account.
Depositing client funds and business funds for the same transaction into the same trust account.
Depositing client funds and business funds for the same transaction into the same trust account.
Trust funds are required to be held in a federally insured banking institution in Alabama. Such funds are insured up to??
$250,000
When is the rule of caveat emptor allowed to be used in Alabama?
When used residential property is being sold
Broker Josiah is representing both the buyer and the seller in the sale of a property in Birmingham. To legally do this, what must Josiah do?
Notify both clients which will receive preferential treatment during the transaction
Sign an agency agreement with both clients' qualifying broker prior to providing any brokerage services
Obtain written consent from both clients to enter into the relationship agreement
Disclose the non-agency relationship to both the buyer and the seller
Obtain written consent from both clients to enter into the relationship agreement
Which of the following can be attributed to most law violations?
Failure to fulfill obligations
Negligence
Failure to disclose
Lack of honesty
Lack of honesty
License law prohibits a licensee employed by a qualifying broker from mishandling trust funds. Which of the following does NOT constitute this licensee's mishandling of trust funds?
Transferring earnest money from a trust account into an opening account
Accepting cash as earnest money
Depositing cash into qualifying broker's trust account
None of the above
Accepting earnest money in cash
How trust funds are handled is determined by
the LAW
When a seller chooses to receive offers directly from the selling agent and not the listing agent, who is responsible for providing the seller with an estimated closing statement?
The listing agent
The qualifying broker
The selling agent
None of the above
none of the above
Which brokerage relationship would be common for brokers in a company that is located in a large market area with many listed properties?
Limited consensual dual agency
Whether or not a rebate or incentive is a violation of the law depends on
when it is given
What happens to monies remaining in the revenue fund at the end of the fiscal year?
Remaining funds are transferred to the following year.
Which of the following statements is TRUE?
Trust funds must be deposited into a financial institution located in Alabama.
Funds belonging to others must be deposited into an insured account.
Trust fund accounts must be located in any bank whose home office is in Alabama.
Trust fund accounts must insure each deposit for $200,000.
Trust funds must be deposited into a financial institution located in Alabama.
Cheryl sues her agent Carla and is awarded monetary damages as a result of Carla's neglect during the Cheryl's real estate transaction. Carla is embarrassed about the suit and scared she could lose her license, so she doesn't want anyone to know about the suit. What violation might Carla be guilty of?
Having a final money judgment against the licensee
Failure to report the legal action to the AREC
Not fulfilling licensee obligations to the client
All of the above
All of the above
In which agency relationship might a customer become confused as to whom the agent represents?
Subagent