License Status: Transfer, Inactive, Reactivation
Area III is worth 2 scored items and covers transferring a license, inactive status, and reactivation.
Changing qualifying brokers
Under Section 34-27-34(b) a salesperson or associate broker gives written notice to the commission with a copy to the current qualifying broker; the new qualifying broker files a request for the transfer and a statement assuming liability for the licensee, and on payment of a $25 fee a new certificate issues for the unexpired term. Subsection (e) is the trap: no act requiring a license may be performed after the association ends or during a change of brokers "until a new active license has been issued by the commission."
Inactive status and getting back to active
A licensee may ask the commission to hold the license inactive; Section 34-27-35(k) provides that inactive licenses are kept at the commission office and that no act requiring a license may be performed under one. Continuing education is not required to renew on inactive status, but Rule 790-X-2-.13 and Rule 790-X-1-.13(1) require a full 15 clock hours of approved continuing education to activate an inactive license the first time in a license period, plus the $25 change-of-status fee. There is no fee to move from active to inactive.
Keep going: the full Alabama Real Estate Broker guide covers every section of the exam. Alabama Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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.