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Practice Of Real EstateLicense_lawMEDIUM

Under Alabama license law and AREC rules, which of the following is NOT a ground for disciplinary action against a licensed Alabama real estate salesperson?

Correct Answer

C) Conducting real estate activities in a state other than Alabama without an Alabama license

AREC's disciplinary authority under Code of Alabama §34-27-36 extends to conduct by Alabama licensees in connection with Alabama real estate activities. Conducting real estate activities in another state without a license in that state is a matter governed by the other state's licensing authority, not AREC. AREC does not have jurisdiction to discipline an Alabama licensee solely for violating another state's licensing requirements when the conduct occurred entirely outside Alabama.

Answer Options
A
Commingling client trust funds with the salesperson's personal bank account
B
Failing to disclose a known material defect in a property being sold
C
Conducting real estate activities in a state other than Alabama without an Alabama license
D
Making a substantial misrepresentation to a party in a real estate transaction

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Related Topics & Key Terms

Key Terms:

disciplinary_actiongrounds_for_disciplinearec_jurisdictionlicense_requirementsreverse_question

Related Concepts

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

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