Question

which of the following is not grounds for refusal, suspension, or revocation of a license or other punishment of the licensee?

failing to inform buyer and seller of the approximate closing costs each will have to pay
failing to notify the multiple listing service of a sale of listed property
acting for more than one party in a transaction without first obtaining the written consent of all parties
taking a net listing

Explanation:

Analyze Alabama license law violations

Under Alabama Real Estate License Law (specifically Section 34-27-36), certain actions are designated as violations that can result in license refusal, suspension, revocation, or other disciplinary actions. These include:

• Failing to provide a complete estimated closing statement to both the buyer and seller at the time an offer is presented.
• Acting for more than one party in a transaction without the written consent of all parties (undisclosed dual agency).
• Accepting, taking, or charging any undisclosed commission, or entering into a net listing agreement (net listings are strictly prohibited in Alabama).

Evaluate the options

• Failing to inform buyer and seller of approximate closing costs: This is a violation under Alabama law.
• Failing to notify the multiple listing service (MLS) of a sale: While this may violate local MLS rules and regulations, it is not a statutory violation of Alabama state license law that constitutes grounds for license suspension or revocation by the Real Estate Commission.
• Acting for more than one party without written consent: This is a major license law violation (illegal dual agency).
• Taking a net listing: Net listings are illegal and constitute a direct violation of Alabama license law.

Answer:

• (A) Failing to inform buyer and seller of the approximate closing costs each will have to pay
• (B) Failing to notify the multiple listing service of a sale of listed property (Correct answer)
• (C) Acting for more than one party in a transaction without first obtaining the written consent of all parties
• (D) Taking a net listing