Alabama Real Estate Salesperson Exam — All Questions

Which Alabama brokerage activity is excluded from the RECAD disclosure requirement altogether?

• a.Listing and selling unimproved residential land
• b.Selling a home for a builder before it is completed
• c.Rental and property management services✓
• d.Representing a buyer at a foreclosure auction

All rental or property management services are excluded from the disclosure requirement, and the Commission rule repeats the exclusion. Property management companies must still adopt an agency disclosure office policy, though they need not give it to consumers. Cite: Ala. Code 34-27-82(c); Ala. Admin. Code r. 790-X-3-.13(2).

When does Alabama law require a signed written brokerage agreement before a licensee may act for compensation?

• a.Before listing a property or submitting an offer for a consumer✓
• b.Before answering any question about a listed property
• c.Before showing the consumer a property for the first time
• d.Only when the consumer elects a single agency relationship in writing

A written brokerage agreement is required before a licensee either lists a property for sale or submits an offer on behalf of a consumer, customer, or client for compensation. The statute is explicit that a written agreement may not be demanded merely to show a property. Cite: Ala. Code 34-27-82(e); AREC, 'Changes Made to RECAD by Act 2025-59', effective April 18, 2025.

Two licensees under the same Alabama qualifying broker hold separate agency agreements with the buyer and the seller in one transaction. What relationship exists?

• a.Dual agency, created automatically by the shared broker
• b.Subagency, with the buyer's licensee serving the seller
• c.Transaction facilitation for both of the two parties
• d.Designated single agency, with each licensee a single agent✓

The qualifying broker may designate the two licensees as single agents for their own clients. A designated single agent is not a dual agent, and neither the qualifying broker nor the other licensees are assumed to have knowledge of a party with whom they have no agency agreement. Cite: Ala. Code 34-27-82(g); Ala. Admin. Code r. 790-X-3-.14(4)(a).

What does Alabama require before a licensee may provide brokerage services as a dual agent?

• a.Oral disclosure to both parties before any property is shown
• b.Prior written informed consent of all clients involved✓
• c.Approval of the transaction by the Commission's staff
• d.A written waiver of the licensee's duty of confidentiality

A licensee may provide brokerage services as a dual agent only with the prior written, informed consent of all clients in the transaction, and dual agency arises only once all parties have signed the consent agreement. Cite: Ala. Code 34-27-85(c); 34-27-81(8).

What does RECAD require of an Alabama qualifying broker regarding the agency disclosure office policy?

• a.File it with the Commission before each license period
• b.Post it in the reception area of every branch office
• c.Explain it to every licensee at least once a year✓
• d.Mail it to every consumer the company has served

The qualifying broker must give every licensee a copy of the policy and explain it to all licensees at least once a year. Each licensee signs a form acknowledging receipt and a satisfactory explanation, and the company keeps that copy for three years. Cite: Ala. Code 34-27-83; Ala. Admin. Code r. 790-X-3-.14(2) and (3).