Disciplinary Actions and Process
Area VI is worth 3 scored items and follows a complaint from intake through hearing, disciplinary action, rehearing and appeal.
Complaint to hearing
Section 34-27-36 lets the commission or its staff investigate on its own or on a verified written complaint, and issue subpoenas. Rule 790-X-3-.06 puts the probable cause determination with the assigned investigator in consultation with the Attorney General's representative and the Executive Director; only on probable cause is a formal complaint filed. Service is personal or by certified mail, the accused gets at least 15 days' notice, and hearings are held in Montgomery County unless the commission elects another county. A hearing officer presides, and the commission renders a written order within 30 days of the final date of hearing.
The penalty menu
Act 2025-380 rewrote the sanctions. For each violation the commission may impose a fine of not less than $100 and not more than $5,000 — raised from $2,500 — require additional approved education on top of the existing continuing education, issue a public reprimand, or revoke or suspend any or all licenses. A suspension may run until the licensee completes an approved course, makes restitution to accounts holding funds for others, or both.
Rehearing and appeal
Section 34-27-37(d) allows an application for rehearing within 30 days on seven listed grounds; it does not modify the effective date of the decision and is deemed denied if the commission enters no order within 30 days. Section 34-27-38 gives 30 days from the final order to file a notice of appeal in the circuit court of Montgomery County or the licensee's county of residence, with a $200 appeal bond. The appeal is not a supersedeas, is heard without a jury, is confined to the record, and the commission's decision is taken as prima facie just and reasonable.
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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
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