Trust Funds
Area VIII is worth 3 scored items. The statute supplies the prohibitions and Rule 790-X-3-.03 supplies the mechanics.
Where the money sits
Funds belonging to or held for others go in a separate federally insured account or accounts "in a financial institution located in Alabama," and commingling them with the licensee's own funds is a prohibited act in itself. Rule 790-X-3-.03(1) requires the qualifying broker to be a customer of that institution and one of the persons authorized to deposit, withdraw and write checks on the account.
When it goes in
A salesperson or associate broker pays all trust funds over to the qualifying broker immediately on receipt. Cash is deposited immediately. A check is deposited when the contract form says, or — if the form specifies no time — when the offer becomes a contract.
When it comes out
Trust funds are disbursed promptly and within 7 business days of consummation. If the transaction terminates without consummation, or the parties disagree about disbursement, the qualifying broker may not disburse at all except under a written agreement signed by all parties or a court order; the rule expressly preserves interpleader. Records of funds belonging to others — whose money, date in, date out, and other pertinent information — are kept at least three years.
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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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