Alabama Real Estate License Law for Brokers
Alabama real estate practice is governed by Title 34, Chapter 27 of the Code of Alabama and administered by the Alabama Real Estate Commission (AREC). This chapter covers the qualifying broker's role, the company license, temporary-to-permanent licensing, and recordkeeping duties.
AREC and the Qualifying Broker
AREC issues, renews, and disciplines real estate licenses in Alabama. Every real estate company must operate under a qualifying broker who holds the company license and is legally responsible for the firm's operations, advertising, trust funds, and the licensed activity of its associate brokers and salespersons. Associate licensees act only for and in the name of that qualifying broker and cannot practice independently.
Temporary and Original Licenses
Alabama issues a new salesperson a one-year temporary license that cannot be renewed. To obtain the original (permanent) license, the licensee must complete the 30-hour post-license course before the temporary license expires. Brokers supervise these newly licensed people and should track their post-license deadlines so their temporary licenses do not lapse.
Recordkeeping and Supervision
Qualifying brokers must retain transaction and trust-account records for at least three years and make them available for AREC inspection. Failure to supervise associates, maintain records, or properly handle trust funds is a frequent basis for discipline. The broker's supervisory accountability is what distinguishes the broker tier from the salesperson tier.