Violations Which May Result in Disciplinary Action
Area X alone is 12 of the 40 scored state items — thirty percent of the state portion, and the largest single block on the Alabama exam. The outline lists thirteen lettered violations, A through M, all drawn from the prohibited-acts list in Section 34-27-36.
Misrepresentation, inducement, advertising, listings
Prohibited: material misrepresentation or failure to disclose any latent structural defect or other defect known to the licensee that would be significant to a reasonable and prudent person; inducing a party to breach a contract to substitute a new one where the substitution is motivated by the licensee's personal gain; advertising without the qualifying broker's or company's name appearing "prominently," which Act 2025-380 defines as a font equal to or larger than any other name, text or logo other than terms like "for sale"; and failing to include a fixed date of expiration in a written listing agreement or to leave a copy with the principal. Rule 790-X-3-.05 bans automatic extension clauses, and accepting a net listing is itself a violation.
Disclosure, records, rebates, and unlicensed compensation
Prohibited: misrepresenting or failing to disclose to any lender, guaranteeing agency or other interested party the true terms of a sale; failing to keep records of funds belonging to others, and copies of contracts, leases and listings, for three years; paying or receiving any rebate from any person in a real estate transaction — Alabama has no consent or disclosure exception; and paying or dividing compensation with anyone other than a licensee or a multiple listing service. A salesperson or associate broker may accept compensation only from his or her qualifying broker, and may own an entity purely to receive those payments.
Reporting, lotteries, documents, orders, and offers
Section 34-27-31(j) and (k) require written certified-mail notice to the commission within 10 days of the institution of a criminal prosecution or a real-estate-related civil summons and complaint, and again within 10 days of a verdict, judgment or dismissal. Prohibited: offering free lots or conducting lotteries to influence a purchase or lease; failing to voluntarily furnish a copy of each executed document to each party with reasonable promptness, and failing without cause to surrender a document to its rightful owner on demand; violating or disregarding any provision of the chapter or any rule, regulation or order of the commission; and, under Section 34-27-84, failing to present all written offers, counteroffers and addenda in a timely and truthful manner.
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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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