Alaska Real Estate Salesperson Exam — All Questions

Real estate salespersons in Alaska are licensed and regulated by:

• a.The Alaska Housing Finance Corporation
• b.The Alaska Real Estate Commission under AS 08.88✓
• c.The Alaska Superior Court
• d.The Alaska Association of Realtors

The Alaska Real Estate Commission licenses and disciplines brokers, associate brokers, and salespersons under AS 08.88, operating within the Division of Corporations, Business and Professional Licensing. A trade association is a private membership group and has no licensing authority.

An Alaska salesperson may lawfully accept a commission for brokerage services:

• a.From any licensee involved in the transaction
• b.Only through the broker with whom the salesperson's license is placed✓
• c.From the Real Estate Surety Fund
• d.Directly from the buyer at closing

An Alaska salesperson works under and is compensated only by the broker who holds the salesperson's license. A salesperson may not take a fee or commission directly from a buyer, seller, or another licensee. The employing broker supervises the salesperson and is responsible for trust funds.

What does the Alaska real estate recovery fund do for a consumer?

• a.It pays the salaries of Real Estate Commission staff
• b.It insures the market value of a home sold by a licensee
• c.It reimburses an actual loss when a judgment cannot be collected✓
• d.It lends down-payment money to qualifying first-time buyers

The fund reimburses a member of the public who has obtained a final judgment against a licensee for an actual loss from fraud, misrepresentation, deceit or conversion of trust funds, and who cannot otherwise collect, subject to the statutory limits. NOTE ON THE NAME: this was the 'real estate surety fund' until HB 357 renamed it the real estate recovery fund; older study guides still use the retired name. Payment does not automatically suspend the licence — reinstatement turns on repayment under the separate licence provisions. Cite: AS 08.88.450–.495.

Alaska real estate licenses lapse:

• a.January 31 of every even-numbered year✓
• b.On the anniversary of issuance every two years
• c.December 31 of every odd-numbered year
• d.The last day of the licensee's birth month

All licenses lapse January 31 of every even-numbered year unless renewed, and the commission sends a renewal reminder at least 60 days before that date. The renewal application must include the fee, the recovery fund fee, and certification of continuing education. Cite: 12 AAC 64.071(a) and (b).

An Alaska license issued for the first time in the middle of a licensing period lapses:

• a.At the end of the biennium, like every other license
• b.After two years, regardless of education
• c.When the licensee changes brokers, unless the commission is notified
• d.395 days after issuance unless the education requirement is met✓

Apart from the ordinary January 31 lapse date, an initially-issued license lapses 395 days after issuance unless the licensee meets the post-licensing education requirement. That is the regulation's counterpart to the statutory one-year education deadline plus the 30-day certification window. Cite: 12 AAC 64.071(g); AS 08.88.095.

An Alaska license lapsed 30 months ago. The former licensee now wants to practice again and must:

• a.Pay the reinstatement fee and file proof of continuing education
• b.Meet the qualifications that apply to initial licensure✓
• c.Request a hearing before the commission
• d.Apply for an inactive license first

A license lapsed less than 24 months may be reinstated with the application, fees, proof of continuing education for the periods it was inactive or lapsed, and proof of the post-licensing education if applicable. Once the lapse exceeds 24 months the person is eligible only by meeting the qualifications for initial licensure. Cite: AS 08.88.241(a) and (b).

An Alaska licensee stops paying the premium on the errors and omissions policy and the carrier notifies the commission that coverage has terminated. The commission:

• a.Issues a warning letter allowing 30 days to obtain new coverage
• b.Refers the matter to the Department of Law for enforcement
• c.Suspends the license as of the termination date✓
• d.Reduces the license to inactive status until coverage resumes

When the insurer or master policy issuer reports that a premium went unpaid and coverage terminated, the commission suspends the license as of the termination date. The licensee must immediately surrender the license and may not practice until proof of a new certificate is filed and the license is activated. Cite: 12 AAC 64.620, 12 AAC 64.630 and 12 AAC 64.640.

An Alaska licensee surrenders a license and leaves the business. The duty to keep current contact information on file with the commission continues for:

• a.Two years✓
• b.Six months
• c.Five years
• d.It ends at surrender

Each licensee is responsible for ensuring that the commission has current contact information for two years after the lapse, expiration, surrender, suspension or revocation of the license. Notices mailed to that address satisfy due process. Cite: AS 08.88.291(b) and (d).

An Alaska consumer holds an uncollectable arbitration award against a licensee for conversion of trust funds. The claim form for the real estate recovery fund must be filed within two years after:

• a.The conversion of the trust funds actually occurred
• b.The consumer first learned of the loss from the licensee
• c.The arbitration hearing in the matter ended
• d.The award is no longer subject to appeal✓

The claim must be filed within two years after the date the judgment, arbitration award, or settlement agreement that is the basis for the award is no longer subject to appeal. The claimant must also submit a due diligence affidavit showing the amount is uncollectable by reasonable efforts. Cite: AS 08.88.460(a)(2) and (a)(3).

What filing fee accompanies an Alaska real estate recovery fund claim, and when is it returned?

• a.$100, refunded only if the claimant later withdraws the claim entirely
• b.$250, returned if an award is made or the claim is withdrawn✓
• c.$500, which the fund never returns to the claimant
• d.No filing fee is charged for a recovery fund claim

A claimant pays a $250 filing fee when the claim is filed. The fee is refunded if the commission makes an award to the claimant from the fund or if the claimant withdraws the claim. Cite: AS 08.88.460(d).

Alaska licensees pay a recovery fund fee with each application and renewal. That payment is made:

• a.On top of a corporate surety bond the licensee must also carry
• b.Only by brokers and associate brokers, never by salespersons
• c.In lieu of a corporate surety bond, and may not exceed $125✓
• d.Only in years when the fund's average balance is below $250,000

Every real estate licensee applying for or renewing a license pays the commission a recovery fund fee, in lieu of obtaining a corporate surety bond, that may not exceed $125. The commission adjusts the fee by regulation to keep the fund's two-year average balance between $250,000 and $500,000. Cite: AS 08.88.455(a).

The Alaska real estate recovery fund lacks the money to pay an authorized claim. When money is available the commission pays:

• a.Claims in the order filed, with eight percent annual interest✓
• b.The smallest claims first, without interest
• c.All pending claims pro rata, without interest
• d.Only claims refiled after the fund has been replenished by fees

If the fund is insufficient at a given time, the commission satisfies unpaid claims, once sufficient money has been deposited and appropriated, in the order the claims were originally filed, plus accumulated interest at eight percent a year. Cite: AS 08.88.480.

The Alaska Real Estate Commission is made up of:

• a.Five members, all licensed brokers
• b.Seven members: five licensed brokers or associate brokers and two public members✓
• c.Nine members appointed by the legislature
• d.Seven members, four of them public members

The commission consists of seven members. Five must be real estate brokers or associate brokers licensed in the state for at least three years before appointment, and two must be public members under AS 08.01.025. Four of the five licensee seats are tied to the First through Fourth Judicial Districts and one is at large. Cite: AS 08.88.011 and AS 08.88.041(a).

For the Alaska Real Estate Commission to conduct business at a meeting:

• a.All seven members must be present
• b.Both public members must be present
• c.Any three members constitute a quorum
• d.At least two judicial districts must be represented and a majority present✓

The commission may conduct business only when at least two judicial districts are represented and at least a majority of the members are present. Officers are elected at the first meeting of each fiscal year. Cite: AS 08.88.051(b) and (c).

An Alaska licensee is asked to respond to a consumer complaint. The response period the department sets:

• a.Is always 30 days from the date of the request
• b.May be as short as 48 hours in an urgent case
• c.Must allow at least 10 days from receipt✓
• d.Runs from the date the complaint was filed

Licensees must cooperate with the department and the commission during an investigation, and when a licensee is asked to respond, the specified response period must allow at least 10 days from the date the request is received. Cite: 12 AAC 64.175(a).

A person files with the Alaska commission a document required by AS 08.88 that contains a wilful material misstatement of fact. That is:

• a.A misdemeanor: up to one year, up to $1,000, or both✓
• b.Grounds for license revocation only
• c.A class B felony
• d.A civil violation carrying a penalty of $5,000 per occurrence

Filing a notice, statement, or other document required under the chapter that contains a wilful material misstatement of fact is a misdemeanor punishable by imprisonment of not more than one year, a fine of not more than $1,000, or both. Cite: AS 08.88.485.