2. TODAY’S
TOPICS
NEXT

3. RECAD
NEXT

4. DISCIPLINARY
ACTIONS
NEXT

5. ESCROW
FUNDS
NEXT

6. COMPANIES
&
BROKERS
NEXT

7. MISC.
PROVISIONS
NEXT

8. RECAD 5 10 15 20 25
Disciplinary
Actions 5 10 15 20 25
Escrow
Funds 5 10 15 20 25
Companies
and
Brokers
5 10 15 20 25
Misc.
Provisions
5 10 15 20 25

9. RECAD
When must the RECAD
form be provided to a
consumer?
Show Answer

10. As soon as reasonably
possible and before
confidential
information is
disclosed to another.
§34-27-82(c)
Back to Board

11. RECAD
What is the real name
of the RECAD form?
Show Answer

12. Real Estate
Consumer Agency
Disclosure
790-X-3-.13
Back to Board

13. RECAD
If no signed brokerage
agreement is entered
into, what is the
licensee’s relationship
to the consumer?
Show Answer

14. Transaction
Broker
§34-27-82(e)
Back to Board

15. RECAD
Can Agency be implied
in Alabama?
Show Answer

16. No,
There must be a
written agreement
Back to Board

17. RECAD
Name the two
exceptions to the
requirement that
licensees must
provide a RECAD form
to the consumer?
Show Answer

18. 1.For rental or
property
management
services
2.Consumer is acting
on behalf of an
artificial entity
§34-27-82(c)(d)
Back to Board

19. Disciplinary Actions
What is the minimum
& maximum fine per
charge that the
Commission may
impose?
Show Answer

20. $100
to
$2,500
§34-27-36(a) Back to Board

21. Disciplinary Actions
After a consumer has
executed a
document, what must
the licensee do?
Show Answer

22. Promptly furnish a
copy to the
consumer
§34-27-36(a)(10)
Back to Board

23. Disciplinary Actions
What is it called when
a licensee tells a lie
about something
significant in a
transaction that
causes damages? Show Answer

24. Material
Misrepresentation
§34-27-36(a)(3)
Back to Board

25. Disciplinary Actions
If you represent both
the seller and the
buyer, for whom do
you prepare a net
sheet?
When? Show Answer

26. Both your buyer
and the seller
receive a net sheet
at the time of offer
790-X-3-.04 Back to Board

27. Disciplinary Actions
When a licensee knows
that money is being given
“under the table” in a
transaction involving a
mortgage loan, what
should they do?Show Answer

28. Disclose this fact to
the mortgage lender
§34-27-36(a)(21)
Back to Board

29. Escrow Funds
When a shortage is
found by an
auditor, what is the
charge filed by the
Commission against
the broker? Show Answer

30. Failure to deposit and
account for funds at
all times
§34-27-36(a)(8)a&b
Back to Board

31. Escrow Funds
What must a
salesperson or
associate broker do
immediately upon
receiving earnest
money? Show Answer

32. Turn money over
to his or her
Qualifying Broker
790-X-3-.03(2)
Back to Board

33. Escrow Funds
What keeps a broker
from buying gold with
escrow funds and
holding the gold in
trust for consumers?
Show Answer

34. Law requires that
funds be deposited
into a federally
insured bank account
§34-27-36(a)(8)b
Back to Board

35. Escrow Funds
If a contract calls for
earnest money but
doesn’t specify when
it is to be
deposited, when is it
deposited? Show Answer

36. When the offer
becomes a contract
790-X-3-.03(3)
Back to Board

37. Escrow Funds
What offense is
committed if a broker
deposits earnest
money into his/her
personal account?
Show Answer

38. Commingling of funds
§34-27-36(a)(8)a
Back to Board

39. Companies & Brokers
If the broker never
goes to the office, who
is responsible for the
actions of the sales
agents?
Show Answer

40. Qualifying Broker
§34-27-32(e)
Back to Board

41. Companies & Brokers
Is the broker
responsible for an act
of a salesperson even
if they don’t know
about it?
Show Answer

42. Yes, and may be fined
or have their license
suspended
Back to Board

43. Companies & Brokers
What happens to a
company when a QB
submits written notice
to the company and the
Commission that they
are no longer the
Qualifying Broker?
Show Answer

44. The company is out of
business
§34-27-34(d)
Back to Board

45. Companies & Brokers
Can a Qualifying
Broker serve as a QB
at different locations?
Show Answer

46. No they may not
§34-27-32(g)
Back to Board

47. Companies & Brokers
Is it okay for the QB not
to have authority to
deposit into and write
checks out of escrow
accounts if they are not
the company owner?
Show Answer

48. No, Qualifying Brokers
MUST have these
authorities
790-X-3-.03(1) Back to Board

49. Misc. Provisions
Can someone manage
and lease residential
apartments without
being licensed?
Show Answer

50. Yes, they are exempt
from licensing
requirements
§34-27-2-(b)(7)
Back to Board

51. Misc. Provisions
Is there ever a time
that a Salesperson can
serve as a Qualifying
Broker of a company?
Show Answer

52. Yes, if they apply for a
temporary broker
license after the death
or disability of the
Qualifying Broker
§34-27-32(i) Back to Board

53. Misc. Provisions
If a licensee does
something REALLY
bad, can the
Commission revoke
their license without a
hearing? Show Answer

54. No, every licensee is
entitled to a hearing
§34-27-36
§34-27-37
Back to Board

55. Misc. Provisions
Is an applicant
automatically denied a
license if they have a
criminal record for a
felony or crime involving
moral turpitude?
Show Answer

56. No, the Commission
may or may not allow
them to be licensed.
§34-27-32(a)
Back to Board

57. Misc. Provisions
When a licensee sells
their own property that
is owned with a relative
in an LLC, is it
acceptable to simply
note in the contract that
they have a real estate
Show Answer
license?

58. No, they must disclose
the relationships to
the buyer in writing
before the buyer
becomes contractually
obligated
§34-27-84(a)(6) Back to Board

59. Who is more likely
to sue you?
Buyer or Seller?

60. 2/3 Of suits
are from
Buyers

61. The Big Point
Question
Show Question

62. 25
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
26
27
28
29
30
6
7
8
9
Big Point Question
What will happen to
the broker if an agent
does not complete CE
by 9/30 and continues
to practice real estate
Show Answer

63. Broker gets free
advertising in the
AREC Update along
with the agent for
failing to meet the
requirements for
licensure
To End