Alabama Real Estate Broker Exam — All Questions

The Alabama Real Estate Commission has served a licensee with a formal complaint. How much notice of the hearing is required, and where is the hearing normally held?

• a.At least 30 days' notice, in Montgomery County unless the commission directs otherwise
• b.At least 10 days' notice, in the county where the alleged violation occurred
• c.At least 15 days' notice, in Montgomery County unless the commission directs otherwise✓
• d.At least 15 days' notice, in the county where the licensee's office is located

Section 34-27-37(a) supplies both halves. "An action against an accused shall begin by serving the accused either personally or by certified mail with a copy of the formal complaint against him or her. The accused shall be given at least 15 days' notice of the time, date, and place of hearing." And on venue: "Hearings shall be held in Montgomery County unless the commission decides to hold the hearing in the county in which the applicant or accused resides, maintains his or her principal place of business, or any other county in which the commission has scheduled a meeting." So the default sits with the commission's seat and moves only at the commission's election, not automatically to the licensee's office or to the scene of the conduct. Thirty days is a real figure in the same section, but it is the deadline for the commission to render its written order after the final date of hearing. Getting to a hearing takes several steps: 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, Rule 790-X-3-.10 sets out what a formal complaint must contain, and Rule 790-X-3-.11 requires the hearing to be conducted by a hearing officer appointed by the commission.

A licensee is found in violation of conduct prohibited by Section 34-27-36. What is the largest fine the commission may impose for that violation?

• a.$5,000✓
• b.$2,500
• c.$10,000
• d.$1,000

Act 2025-380, effective October 1, 2025, rewrote the penalty provision into a menu and doubled the ceiling. Section 34-27-36 now provides that "in each instance in which a licensee is found in violation of any of the conduct prohibited in subsection (b), the commission may impose any of the following penalties: a. A fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000). b. Require the licensee to complete an approved education course or courses in addition to completing the existing continuing education requirements. c. Issue a public reprimand. d. Revoke or suspend any or all licenses held under this chapter by the licensee." The $100 minimum was left where it was. $2,500 was the old maximum and is the number every study guide printed before October 2025 still gives, which is exactly why it is worth checking the date on the book you are studying from. $1,000 and $10,000 are not figures this section has used. A suspension may continue until the licensee has completed an approved continuing education course, made restitution to accounts holding funds for other parties, or both, and the commission may also stay a revocation or suspension on those conditions.

The commission enters a final order revoking an Alabama broker's license and the broker wants a court to review it. What does the license law require?

• a.A notice of appeal in circuit court within 30 days, with a $200 bond✓
• b.A notice of appeal in circuit court within 15 days, with a $500 bond
• c.A petition in circuit court for a new trial, to be heard before a jury
• d.An application for rehearing, which stays the order until it is decided

Section 34-27-38(a) makes the commission's findings "final unless within 30 days after the date of the commission's final order, the applicant or accused files a notice of appeal in the Circuit Court of Montgomery County, or of the county of his or her residence, if an Alabama resident," and adds that "a party appealing a decision shall post a $200 appeal bond with the clerk of the circuit court." What follows is review, not a retrial: subsection (d) provides that the appeal "shall be conducted by the court without a jury and shall be confined to the record," that the commission's decision "shall be taken as prima facie just and reasonable," and that the court shall not substitute its judgment on the weight of the evidence. Rehearing is a separate route and does not buy time: Section 34-27-37(d) allows an application for rehearing within 30 days of notice of the decision on seven specified grounds, but states that it "does not modify the effective date of the decision," and it is deemed denied if the commission enters no order within 30 days of its filing. An appeal is no stay either — Section 34-27-38(b) says an appeal "does not act as supersedeas," though the court may stay the decision pending appeal.