Transcript Slide 1
Alabama Real Estate Commission Salesperson Test Outline 150 Questions This follows the class outline Steve McTyeire, Broker [email protected] 205-807-5200 • What federal laws on contacting customers must we obey? • What is the purpose of the Alabama Real Estate Commission? • How many members are on the Commission? • New Commissioners: • • • • Who appoints? Who confirms? How long is term? Are all Commissioners brokers? • How many Commission members hold a real estate license? • How old must Commissioners be to serve? • Define broker • Define associate broker • Define qualifying broker (QB) • Define Commissioner • Define Company • Define Engage • Why would the Commission hold a license? • Define licensee • What is the license period? • By when must the license be renewed? • What is the penalty for late renewal? • By when must continuing education be completed? • Define Person • Define Place of Business • Rural • Within Police Jurisdiction (city) • Any exceptions? • Where must records be kept? • How long? • Define Salesperson • What are the activities that require a license? License required if performing for another in Alabama: B A R N Buy Aid Rent Negotiate S A L E Sell Auction Lease Exchange • What activities are exempt from a license? License not required: My attorney has authority, as an apartment manager, to sell time share cemetery lots • What must you do if you want to: Co-Brokerage with an out of state broker? • What are the qualifications for an Alabama Salesperson License? • What are the qualifications for a broker license? • QB may serve for more than 1 company if: • How long is a license period? • How much is a salesperson’s renewal? • How many hours of CE are required each license period? • What do the hours include? • Is there an exam in a CE class? • Does your CE need to be up to date to: • Renew a license? • Re-activate a license? • How many hours is the post license course? • How long do you have after taking the state test to complete post license? • What if you forget to take the post license within 6 months? • How much is the temporary license? • Explain how the expiration date of a temporary license is determined? • If you don’t complete the post license course within 1 year of passing the state test, what will happen? • What is the fee to transfer a license? • What must be done to transfer your license to another broker? • Why would a license be inactive? • Must you complete CE if inactive? • How long can you stay inactive? • If you want to re-activate, what must be done? • Each company and branch office must have: • 1 • 2 • To be issued a broker license, an applicant must: • 1 • 2 • 3 • 4 • To be the qualifying broker, an broker must: • 1 • 2 • 3 • What are the responsibilities of the QB? • 1 • 2 • 3 • QB may terminate status by: • 1 • 2 • QB may terminate agent by: • 1 • 2 • 3 • How may a QB serve more than 1 company? • 1 • 2 • 3 • What happens if the QB dies or becomes disabled? • How can the company continue after death of broker? • What is an associate broker status? • Who may operate a real estate brokerage from home? • How can this be done? • What is the purpose of the Recovery Fund? • How much will you pay into the Recovery Fund when you get an original license? • What will happen if the Recovery fund drops below $500,000? • How is the Recovery Fund funded? • Does an Alabama salesperson pay into the Recovery fund when they get a broker license? • Why would the Recovery Fund pay out? • How much will the Recovery Fund pay due to one transaction? • How much will the Recovery Fund pay due to one licensee? • What will happen to the licensee’s license when the Fund pays? • What will happen if someone calls the AREC and tells them you did something they don’t think is right? • What is the AREC looking for in a complaint? • 1 • 2 • What does a complaint include? • • • • • 1 2 3 4 5 • If probable cause is found, what happens? • Days to Hearing? • Days to Decision? • Days to Appeal? • What class violation is a real estate infraction? • What are the penalties? • Minimum? • Maximum? • Jail time? • If you don’t like the AREC decision, what can you do? • Does a rehearing change the effective date of a Commission order? • If you want to appeal, what do you do? • Who pays the cost of an appeal? • Trust Funds must be held: • 1 • 2 • 3 • Who can hold the trust money? • When must trust funds be deposited? • How is trust money disbursed? • How long do these records need to be held & where? • What is RECAD • RECAD Definitions: – Agency Agreement • RECAD Definitions: – Consumer • RECAD Definitions: – Client • RECAD Definitions: – Customer • RECAD Definitions • Dual Agency: • 1 • 2 • RECAD Definitions: – Informed Consent • RECAD Definitions – Material Fact • RECAD Definitions: • Can agency be implied? • How does fraud apply to implied agency? • Define – Transaction Broker • Define – Single Agent • Define – Dual Agent • Define – Sub Agent • What are the RECAD duties to all: • • • • • • 1 2 3 4 5 6 • What are the RECAD duties to Clients: • All of the “duties to all” OLD + Plus 1 2 3 • Who must sign the RECAD? • Is there anything else that goes with the RECAD from? • What is RECAD office policy? • What services are exempt under RECAD? • 1 • 2 • Violations • How does the AREC feel about: – Misrepresentation? – Dishonest Dealings? • Will the AREC allow you to operate in a “gray area” by selling and buying property in your family members (spouse, child or parent) names to avoid real estate laws? • What will the Commission likely do if you don’t tell the truth on your application? • Do you need to disclose the fact that you have an interest in the property you are selling? • When must you disclose your personal interest? • Why is it important to disclose health and safety issues? • Will you get in trouble for not disclosing something related to this topic? • Do you have a duty to discover these defects? • If you induce a party to break a contract to substitute one where you gain, • will you have some explaining to do? • Advertising: – What are the 3 rules • 1 • 2 • 3 • Do Alabama’s RE laws apply to Internet advertising? • Rule change on advertising letter size • New law • Brokerage name must be prominent on ad • Old Law did say broker name must be as big or bigger than agent’s What does a listing agreement must have? • Can we have an automatic renewal on a listing? • What is a “net listing” • Are they legal in Alabama? • Disclosure: • What are the forms to use for disclosure? • Disclosure – What is a latent defect? • Disclosure: – Do you need to disclose latent defects? • Disclosure: – Do you need to discover latent defects? • What are some health & safety issues? • What is the date to use for: – Lead Based Paint (LBP) disclosure? • Who must sign the – Lead Based Paint form? (LBP) • What is the fine for not getting the LBP? • Do you need to give a consumer anything along with the LBP form? • When do you prepare a net sheet? • If you own the property you are selling, do you need to disclose this? • When? • Must you tell the buyer looking at your listing that there was a murder in the home? • Would you need to tell them about the Radon gas you know is seeping through the floor? • What does “caveat emptor” mean? • How does “caveat emptor” help the seller? • Agents do not have full immunity under “caveat emptor” What are the exceptions: 1 2 3 4 • Why is the disclosure box in a contract? • How long must you keep records? • What kind of rebates can you accept? • RESPA federal law also levels the field by allowing buyers to do what? • What is an affiliated business arrangement? • Who is the only one allowed to pay agents? • What is the fine for presenting a bad check to AREC? • If you are arrested, or have a civil case filed against you for involving a real estate transaction, when must you inform AREC? • When the case is settled, how long do you have to let AREC know? • Can you conduct a lottery for free lots to influence purchasers? • Documents • How soon must you get copies to the parties? • Documents • How long must these records be kept? • If you have someone’s documents or papers and won’t give them back, what will the AREC do? • If you get a written offer, what must you do? • Finally, is it illegal to violate any provision or rule of AREC?