Alabama Licensing Requirements
Area II of the Pearson VUE Alabama state outline is worth 6 of the 40 scored state items and covers the activities that require a license, cobrokering, qualifications, renewal, continuing education, post-license education, and the temporary and original salesperson licenses.
Activities requiring a license, and who is exempt
Section 34-27-30 makes it unlawful to sell, offer, negotiate, list, auction, or procure prospects or properties for a fee without a license. Section 34-27-2(b) exempts owners dealing in their own property, attorneys performing their duties, persons acting without compensation under a power of attorney, fiduciaries and public officers, apartment managers (but not on-site managers of a condominium), and clerical staff "so long as the person does not physically show listed property." Rule 790-X-1-.04 repeats that limit from the employee's side.
Broker qualification and cobrokering
A broker applicant who holds no out-of-state license must prove, under Section 34-27-32, 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 a commission-approved course of at least 60 clock hours. Cobrokering with an out-of-state principal broker is governed by Section 34-27-3, which Act 2025-380 capped at three transactions per calendar year per out-of-state broker and $50,000,000 of Alabama business per year, with the written agreement filed with the commission within 10 days of signing.
Renewal, continuing education, and the temporary license
Renewal forms and fees are due on or before August 31 of the final year of the license period; filing between September 1 and September 30 costs a $150 penalty, and missing September 30 puts the license on inactive status the following October 1. Brokers renew on 15 clock hours composed under Rule 790-X-1-.11(2) of 3 hours Risk Management, 3 hours of the Broker course and 9 elective hours — the Broker course is what distinguishes them from salespersons. A new salesperson's temporary license is active only for its first six months; without the 30-hour post-license course it goes inactive, and it lapses at one year and may never be renewed.
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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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