The Estimated Closing Statement
Area VII is worth 2 scored items, and on Alabama's exam they are arithmetic. Note the handbook's own instruction: personal calculators are not allowed, but an on-screen calculator is provided.
When the statement is owed
Rule 790-X-3-.04 requires a licensee in a single-family residential sales transaction to furnish the client, consumer or customer "a complete estimated closing statement each time the licensee presents a written offer or counteroffer ... or each time the licensee prepares a written offer or counteroffer," containing best estimates of all costs that party may have at closing, acknowledged by dated signature. Section 34-27-36 makes failure to inform a buyer or seller at the time an offer is presented that certain closing costs will be owed, and their approximate amount, a prohibited act.
The two Alabama recording taxes
Section 40-22-1(c) charges the deed tax at $.50 for each $500 of value conveyed "or fraction thereof," and no deed is received for record until it is paid. Section 40-22-2(1)a charges the mortgage tax at $.15 for each $100 of initial indebtedness "or fraction thereof." Both phrases mean you divide, then round the part-unit up to a whole one before multiplying — a $263,200 sale is 526.4 units, taxed as 527, or $263.50, not $263.20.
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State-specific details
State exam facts
- State regulator
- Alabama Real Estate Commission (AREC)
- Exam vendor
- Pearson VUE
- Prelicensing education
- 60-clock-hour broker pre-license course (minimum grade 70)
- Passing score
- 70 (scaled score, 0-100)
- Scored questions
- 120
- Time limit
- 210 minutes
Who regulates real estate brokers in Alabama?
The Alabama Real Estate Commission (AREC) licenses brokers, salespersons and companies under Title 34, Chapter 27 of the Code of Alabama. AREC contracts with Pearson VUE to schedule and deliver the licensing exams, and candidates must pre-register with the Commission before an exam authorization is sent to Pearson VUE.
What experience do I need before the Alabama broker exam?
An applicant who holds no out-of-state broker license must prove an active real estate salesperson license in any state for at least 24 of the 36 months immediately preceding application, high school graduation or the equivalent, and completion of a Commission-approved course of at least 60 clock hours (Ala. Code § 34-27-32). Applicants have six months after finishing the course to pass the exam.
How is the Alabama broker exam structured?
It is two multiple-choice portions taken in one 3.5-hour appointment: an 80-item national/general portion with 2.5 hours allotted, and a 40-item Alabama state portion with 1 hour. There is no simulation section. Ten to fifteen unidentified pretest items are also included and do not count. Candidates receive one overall scaled score, and a 70 or higher passes; fail the overall exam and the entire test must be retaken.
What is the biggest topic on the Alabama state portion?
Violations which may result in disciplinary action — 12 of the 40 scored state items, 30% of the state portion on its own. Pearson VUE's outline lists thirteen lettered violations under it, from misrepresentation and advertising to rebates, lotteries and the handling of documents, all drawn from the prohibited-acts list in Ala. Code § 34-27-36.
Sources: https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/093300.pdf, https://www.pearsonvue.com/us/en/al/realestate.html, https://arec.alabama.gov
In the Alabama Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.