Alabama Brokerage Practice and Consumer Protection
This chapter covers Alabama's day-to-day practice rules: trust and escrow accounts, advertising and supervision, and the Alabama Real Estate Recovery Fund that protects consumers.
Trust and Escrow Accounts
The qualifying broker is responsible for the brokerage's trust or escrow account. Client funds such as earnest money must be deposited into that account and kept separate from the broker's own funds. Commingling or converting client funds violates Alabama license law and can lead to discipline.
Advertising and Supervision
Alabama advertising must be conducted under the qualifying broker and must not be false or misleading. A salesperson advertises in the name of the brokerage. Because the qualifying broker supervises the salesperson, violations by the salesperson can also expose the broker to discipline.
The Alabama Real Estate Recovery Fund
The Recovery Fund reimburses members of the public who obtain a valid but unpaid court judgment against a licensee for certain violations of the license law, subject to statutory per-transaction and per-licensee limits. A licensee who causes a payout may have their license suspended until the fund is repaid with interest.
State-specific details
State exam facts
- State regulator
- Alabama Real Estate Commission (AREC)
- Exam vendor
- PSI
- Prelicensing education
- 60 hours of approved salesperson pre-license education
How many prelicensing hours does Alabama require to become a real estate agent?
Alabama requires a 60-hour salesperson pre-license course approved by the Alabama Real Estate Commission before you sit for the state exam.
Who licenses real estate agents in Alabama?
The Alabama Real Estate Commission (AREC) licenses salespersons and brokers. AREC uses PSI to deliver the exam.
How is the Alabama salesperson exam structured?
The Alabama salesperson exam is delivered by PSI with a national portion and an Alabama state portion, scored separately; you must pass both. Confirm the current scored-question counts in the PSI Candidate Information Bulletin.
Sources: https://arec.alabama.gov/licensing/, https://www.psiexams.com/
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