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Alabama Real Estate Broker — Requirements & Free Practice

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Real Estate Broker License

Individual broker license; associate and qualifying broker are roles under this license. The Act 2025-379 restructuring does not take effect until October 1, 2028.

Licensing authority: Alabama Real Estate Commission · Application information

Transfer of an associate broker to a new qualifying broker
No examination is required for this applicant pathway.
Current license
Current Alabama broker license.
Fee
Pay $25 for issuance of a replacement certificate for the unexpired term.
New sponsor
New qualifying broker submits the transfer request and assumes liability.
Notice
Give written notice to the Commission and copy to the former qualifying broker.
Practice restriction
Do not practice after termination or transfer until a new active license is issued.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure by examination
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Course final
Pass the course final examination with a minimum grade of 70; course assessment is an education condition.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Exam administration
The ordinary broker administration contains general and state law parts with an overall score; overall failure requires retaking the entire test.
Experience
Active real estate salesperson licensure in any state for at least 24 of the immediately preceding 36 months.
Handbook legal presence wording
The handbook lists citizen or lawful permanent resident; §34-27-32(a)(5) also allows documented legal presence, which governs eligibility.
High school
High school graduation or equivalent, with documentation under Rule 790-X-2-.01.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Pathway eligibility
Does not hold a current real estate broker license in another state.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete an approved 60-clock-hour broker prelicense course before scheduling the examination.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Testing deadline
Pass the licensing examination within six months after course completion; otherwise repeat the course and obtain authorization again.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
New licensure after lapse without hardship renewal
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Course final
Pass the course final examination with a minimum grade of 70; course assessment is an education condition.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Exam administration
The ordinary broker administration contains general and state law parts with an overall score; overall failure requires retaking the entire test.
Experience
Active real estate salesperson licensure in any state for at least 24 of the immediately preceding 36 months.
Handbook legal presence wording
The handbook lists citizen or lawful permanent resident; §34-27-32(a)(5) also allows documented legal presence, which governs eligibility.
High school
High school graduation or equivalent, with documentation under Rule 790-X-2-.01.
Lapse
Failed to renew by the end of the 12-month post-expiration period; §34-27-35(i) applies all requirements for persons never licensed, absent hardship relief.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Pathway eligibility
Does not hold a current real estate broker license in another state.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete an approved 60-clock-hour broker prelicense course before scheduling the examination.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Testing deadline
Pass the licensing examination within six months after course completion; otherwise repeat the course and obtain authorization again.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
Reciprocal new licensure after lapse without hardship renewal
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Lapse
Alabama license has lapsed beyond the 12-month renewal window; qualify afresh under the current reciprocal route using the qualifying-jurisdiction license.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License history
Provide certification from the qualifying jurisdiction issued within 120 days before Alabama license issuance; disclose status, level, active/inactive history for at least 36 months, prior examination and discipline. The Board’s December 2024 determination form also requests histories from jurisdictions where licensed within the previous five years.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete six hours of Commission-prescribed reciprocal broker coursework before scheduling; these hours do not earn continuing education credit.
Prior other jurisdiction examination
Passing the comprehensive examination in the qualifying jurisdiction establishes prior licensure; another jurisdiction’s examination is an applicant condition, not a leaf of this Alabama route.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Qualifying license
Hold a current active or inactive nonreciprocal, nonresident-excluded license beyond entry level in the qualifying jurisdiction, where prelicense coursework and a comprehensive general-plus-state-law examination were completed. In single-license jurisdictions, second-level or higher licensure equates to Alabama broker licensure.
Reciprocal exam score
A passing scaled score of 70 is required.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Testing deadline
Pass the reciprocal broker examination within six months of completing the course or repeat both the course and examination.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
Waiver of complete exam
§34-27-32(c)(1)(b) replaces the complete examination with the Alabama real-estate written examination.
Full reciprocal licensure following military spouse temporary status
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Board page conflict
The Board’s Become a Licensed Real Estate Professional page states: Spouses of active duty military who are reciprocal license applicants are given special consideration under Rule 790-X-1-.18(13) . Upon submitting a complete application, a certification of licensure evidencing their license from their qualifying state, and proof of their spouse’s active service; these applicants will be granted the appropriate expedited temporary reciprocal license. Those with a temporary reciprocal license will have 180 days to complete the remaining licensure requirements to make the license a permanent one. The administrative rule’s 365-day limit is controlling.
Conversion
Complete every reciprocal licensing requirement before the temporary license expires; the rule directs issuance of a full license on completion.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Expedited temporary issuance
Initial fee waived and expedited temporary reciprocal broker license issued before completing remaining education and examination requirements.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License history
Provide certification from the qualifying jurisdiction issued within 120 days before Alabama license issuance; disclose status, level, active/inactive history for at least 36 months, prior examination and discipline. The Board’s December 2024 determination form also requests histories from jurisdictions where licensed within the previous five years.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Military spouse
Spouse of an active-duty service member; provide a complete application, qualifying-jurisdiction license certification, proof of active service, and relocation orders stationing the spouse in Alabama.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete six hours of Commission-prescribed reciprocal broker coursework before scheduling; these hours do not earn continuing education credit.
Prior other jurisdiction examination
Passing the comprehensive examination in the qualifying jurisdiction establishes prior licensure; another jurisdiction’s examination is an applicant condition, not a leaf of this Alabama route.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Qualifying license
Hold a current active or inactive nonreciprocal, nonresident-excluded license beyond entry level in the qualifying jurisdiction, where prelicense coursework and a comprehensive general-plus-state-law examination were completed. In single-license jurisdictions, second-level or higher licensure equates to Alabama broker licensure.
Reciprocal exam score
A passing scaled score of 70 is required.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Temporary limit
Rule 790-X-1-.18(13) limits temporary status to 365 days; complete all reciprocal requirements during that period or the temporary license expires without reissuance.
Testing deadline
Pass the reciprocal broker examination within six months of completing the course or repeat both the course and examination.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
Waiver of complete exam
§34-27-32(c)(1)(b) replaces the complete examination with the Alabama real-estate written examination.
Additional broker license for an existing broker
No examination is required for this applicant pathway.
Application fee
Submit the multiple-broker application and $150 fee; include a company application for a newly formed company.
Company consent
Obtain written consent from all affected companies and file it with the Commission.
Existing license
Already an Alabama broker; obtain a separate broker license for each firm represented as qualifying broker.
Role
May serve as qualifying broker for multiple companies or as associate broker at another company at the same location, under the application’s consent and signature instructions.
Same address
All represented companies must share the same address.

Official no-examination sources

Effective from 2026-09-22.

Designation of an existing broker as qualifying broker
No examination is required for this applicant pathway.
Company application
Register the qualifying-broker role through the company or branch application or change-of-qualifying-broker process.
Existing license
Already licensed as an Alabama broker.
Principal business
Principal business is real estate brokerage.
Supervision
Able to supervise associate brokers and salespersons on a full-time basis.

Official no-examination sources

Effective from 2026-09-22.

Activation of an inactive broker license
No examination is required for this applicant pathway.
Continuing education
Complete 15 clock hours of approved CE to activate for the first time in a license period, and another 15 hours for active renewal into the next period.
Existing license
Inactive broker license must remain current through renewal.
Fee
Pay $25 for the change from inactive to active.
Practice
No licensed act before activation.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure by reciprocity
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License history
Provide certification from the qualifying jurisdiction issued within 120 days before Alabama license issuance; disclose status, level, active/inactive history for at least 36 months, prior examination and discipline. The Board’s December 2024 determination form also requests histories from jurisdictions where licensed within the previous five years.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete six hours of Commission-prescribed reciprocal broker coursework before scheduling; these hours do not earn continuing education credit.
Prior other jurisdiction examination
Passing the comprehensive examination in the qualifying jurisdiction establishes prior licensure; another jurisdiction’s examination is an applicant condition, not a leaf of this Alabama route.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Qualifying license
Hold a current active or inactive nonreciprocal, nonresident-excluded license beyond entry level in the qualifying jurisdiction, where prelicense coursework and a comprehensive general-plus-state-law examination were completed. In single-license jurisdictions, second-level or higher licensure equates to Alabama broker licensure.
Reciprocal exam score
A passing scaled score of 70 is required.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Testing deadline
Pass the reciprocal broker examination within six months of completing the course or repeat both the course and examination.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
Waiver of complete exam
§34-27-32(c)(1)(b) replaces the complete examination with the Alabama real-estate written examination.
New licensure after an older license revocation by examination
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Course final
Pass the course final examination with a minimum grade of 70; course assessment is an education condition.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Exam administration
The ordinary broker administration contains general and state law parts with an overall score; overall failure requires retaking the entire test.
Experience
Active real estate salesperson licensure in any state for at least 24 of the immediately preceding 36 months.
Handbook legal presence wording
The handbook lists citizen or lawful permanent resident; §34-27-32(a)(5) also allows documented legal presence, which governs eligibility.
High school
High school graduation or equivalent, with documentation under Rule 790-X-2-.01.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Pathway eligibility
Does not hold a current real estate broker license in another state.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete an approved 60-clock-hour broker prelicense course before scheduling the examination.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Revocation approval
A revocation more than two years before application requires approval of the commissioners; the ordinary examination and issuance requirements still apply.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Testing deadline
Pass the licensing examination within six months after course completion; otherwise repeat the course and obtain authorization again.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
New reciprocal licensure after an older license revocation
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License history
Provide certification from the qualifying jurisdiction issued within 120 days before Alabama license issuance; disclose status, level, active/inactive history for at least 36 months, prior examination and discipline. The Board’s December 2024 determination form also requests histories from jurisdictions where licensed within the previous five years.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete six hours of Commission-prescribed reciprocal broker coursework before scheduling; these hours do not earn continuing education credit.
Prior other jurisdiction examination
Passing the comprehensive examination in the qualifying jurisdiction establishes prior licensure; another jurisdiction’s examination is an applicant condition, not a leaf of this Alabama route.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Qualifying license
Hold a current active or inactive nonreciprocal, nonresident-excluded license beyond entry level in the qualifying jurisdiction, where prelicense coursework and a comprehensive general-plus-state-law examination were completed. In single-license jurisdictions, second-level or higher licensure equates to Alabama broker licensure.
Reciprocal exam score
A passing scaled score of 70 is required.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Revocation approval
A revocation more than two years before application requires approval of the commissioners; applicant must otherwise qualify for reciprocal broker licensure.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Testing deadline
Pass the reciprocal broker examination within six months of completing the course or repeat both the course and examination.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
Waiver of complete exam
§34-27-32(c)(1)(b) replaces the complete examination with the Alabama real-estate written examination.
Renewal on active status
No examination is required for this applicant pathway.
Ce exemptions
Statutory first-renewal, historic age-and-tenure, and Legislature-service exemptions apply; inactive renewal does not require CE.
Continuing education
For active renewal complete 15 hours by September 30: 3 hours Risk Management: Initial Contact to Accepted Offer, 3 hours Mandatory Broker CE, and 9 hours approved electives.
Current license
Already holds the Alabama broker license.
Renewal deadline
File the renewal form and fees by August 31 of the final license-period year; late filing attracts the $150 penalty under §34-27-35(g).
Status
Failure to renew or satisfy required CE by September 30 puts the license on inactive status on October 1.

Official no-examination sources

Effective from 2026-09-22.

Late renewal within twelve months after expiration
No examination is required for this applicant pathway.
Ce exemptions
Statutory first-renewal, historic age-and-tenure, and Legislature-service exemptions apply; inactive renewal does not require CE.
Continuing education
For active renewal complete 15 hours by September 30: 3 hours Risk Management: Initial Contact to Accepted Offer, 3 hours Mandatory Broker CE, and 9 hours approved electives.
Current license
Already holds the Alabama broker license.
Expired license
Renew within the 12-month period after the license period for which the license was current.
Penalty
Pay the required fees and $150 penalty; satisfy activation conditions before resuming practice.
Renewal deadline
File the renewal form and fees by August 31 of the final license-period year; late filing attracts the $150 penalty under §34-27-35(g).
Status
Failure to renew or satisfy required CE by September 30 puts the license on inactive status on October 1.

Official no-examination sources

Effective from 2026-09-22.

Discretionary hardship renewal of a lapsed license
No examination is required for this applicant pathway.
Continuing education
Satisfy the CE and status conditions necessary to resume active practice.
Fees and penalties
Pay all required fees and penalties.
Hardship determination
Commission may allow later renewal upon a determination of hardship.
Lapsed license
Ordinary renewal window has expired.

Official no-examination sources

Effective from 2026-09-22.

Renewal on inactive status
No examination is required for this applicant pathway.
Ce exemptions
Statutory first-renewal, historic age-and-tenure, and Legislature-service exemptions apply; inactive renewal does not require CE.
Continuing education
CE is not required for inactive renewal; activation requires 15 hours.
Current license
Already holds the Alabama broker license.
Renewal deadline
File the renewal form and fees by August 31 of the final license-period year; late filing attracts the $150 penalty under §34-27-35(g).
Status
Renew an inactive license in the same manner as an active license; no licensed activity while inactive.

Official no-examination sources

Effective from 2026-09-22.

Deferred renewal during military deployment
No examination is required for this applicant pathway.
Deferral
Renewal may be deferred and CE waived for the deployment period.
Military status
Current military licensee deployed at renewal; provide deployment papers.
Return obligations
After deployment ends, before December 31 of the following year, complete the deferred renewal and required portion of previously waived CE as well as current obligations.

Official no-examination sources

Effective from 2026-09-22.

Renewal of a reciprocal broker license
No examination is required for this applicant pathway.
Ce exemptions
Statutory first-renewal, historic age-and-tenure, and Legislature-service exemptions apply; inactive renewal does not require CE.
Certification dates
For the alternative certification, document date no earlier than June 1 and Commission receipt no later than September 30 of the final license-period year.
Continuing education
For active renewal complete 15 hours by September 30: 3 hours Risk Management: Initial Contact to Accepted Offer, 3 hours Mandatory Broker CE, and 9 hours approved electives.
Current license
Already holds the Alabama broker license.
Prior examination
The certification describes the qualifying-jurisdiction examination already passed; it does not require a new Alabama licensing examination.
Reciprocal ce alternative
Either complete Alabama CE or submit qualifying-jurisdiction certification showing current active licensure at least through October 1 and that a full licensing examination was passed there.
Renewal deadline
File the renewal form and fees by August 31 of the final license-period year; late filing attracts the $150 penalty under §34-27-35(g).
Status
Failure to renew or satisfy required CE by September 30 puts the license on inactive status on October 1.

Official no-examination sources

Effective from 2026-09-22.

Temporary Reciprocal Broker License — Military Spouse

Expedited temporary reciprocal broker license for an eligible active-duty military spouse; remaining reciprocal requirements must be completed within the rule’s 365-day limit.

Licensing authority: Alabama Real Estate Commission · Application information

Expedited temporary reciprocal licensure for a military spouse
Application deadline
Submit a complete application, supporting materials and fees within 90 days of the examination date; otherwise the passing score is void.
Background check
Provide fingerprints for state and national criminal-history checks at the applicant’s cost, current to license issuance; the Board uses Fieldprint.
Board page conflict
The Board’s Become a Licensed Real Estate Professional page states: Spouses of active duty military who are reciprocal license applicants are given special consideration under Rule 790-X-1-.18(13) . Upon submitting a complete application, a certification of licensure evidencing their license from their qualifying state, and proof of their spouse’s active service; these applicants will be granted the appropriate expedited temporary reciprocal license. Those with a temporary reciprocal license will have 180 days to complete the remaining licensure requirements to make the license a permanent one. The administrative rule’s 365-day limit is controlling.
Criminal history
The Commission may reject felony or moral-turpitude convictions or pleas; criminal-history eligibility follows Rule 790-X-2-.02.
Expedited temporary issuance
Initial fee waived and expedited temporary reciprocal broker license issued before completing remaining education and examination requirements.
Legal presence
U.S. citizenship, permanent resident status, or documented legal presence in the United States.
License history
Provide certification from the qualifying jurisdiction issued within 120 days before Alabama license issuance; disclose status, level, active/inactive history for at least 36 months, prior examination and discipline. The Board’s December 2024 determination form also requests histories from jurisdictions where licensed within the previous five years.
License rejection
No rejection in another jurisdiction on grounds other than examination failure within the previous two years; an older rejection requires Commission approval.
License revocation
No real estate license revocation within the previous two years; an older revocation requires Commission approval.
Military spouse
Spouse of an active-duty service member; provide a complete application, qualifying-jurisdiction license certification, proof of active service, and relocation orders stationing the spouse in Alabama.
Minimum age
At least 19 years old.
Nonresident consent
A nonresident signs the statutory consent to Alabama jurisdiction and appointment of the Executive Director or Assistant Executive Director for service of process.
Photograph
An original broker application includes a recent photograph.
Prelicense education
Complete six hours of Commission-prescribed reciprocal broker coursework before scheduling; these hours do not earn continuing education credit.
Prior other jurisdiction examination
Passing the comprehensive examination in the qualifying jurisdiction establishes prior licensure; another jurisdiction’s examination is an applicant condition, not a leaf of this Alabama route.
Qualifying broker and office
An active associate broker is licensed under an Alabama qualifying broker. A qualifying broker must principally conduct broker business and be able to supervise on a full-time basis; maintain the required place of business and obtain any company or branch license.
Qualifying license
Hold a current active or inactive nonreciprocal, nonresident-excluded license beyond entry level in the qualifying jurisdiction, where prelicense coursework and a comprehensive general-plus-state-law examination were completed. In single-license jurisdictions, second-level or higher licensure equates to Alabama broker licensure.
Reciprocal exam score
A passing scaled score of 70 is required.
Residency documentation
Document bona fide residency in a U.S. state under Rule 790-X-2-.01.
Salesperson license surrender
If currently holding an active salesperson license, return its certificate for issuance of the broker license.
Temporary limit
Rule 790-X-1-.18(13) limits temporary status to 365 days; complete all reciprocal requirements during that period or the temporary license expires without reissuance.
Testing deadline
Pass the reciprocal broker examination within six months of completing the course or repeat both the course and examination.
Trustworthiness
Trustworthy and competent to transact broker business in a manner safeguarding the public.
Waiver of complete exam
§34-27-32(c)(1)(b) replaces the complete examination with the Alabama real-estate written examination.

alabama laws, rules, and regulations examinations (real estate broker)

Provider
Pearson VUE
Format
Computer-based written examination
Exam questions
40 scored state items and 5–10 unscored pretest items. Published broker item allocation: I 0; II 6; III 2; IV 6; V 1; VI 3; VII 2; VIII 3; IX 5; X 12.
Time limit
1 hour for the state examination
Passing score
70 on the 0–100 scaled score; the ordinary broker administration reports an overall score for general and state law and requires the entire test to be retaken after overall failure.
Examination outline
  • I. PURPOSE OF LICENSE LAW/RULES AND REGULATION AND ROLE OF COMMISSION
  • II. LICENSING REQUIREMENTS
    • A. Activities which require a license
    • B. Cobrokering
    • C. Qualifications for a license
    • D. Renewal of a license
    • E. Continuing education
    • F. Post-license education
    • G. Temporary and original Salesperson licenses
  • III. LICENSE STATUS
    • A. Transferring a license
    • B. Inactive status
    • C. Reactivation of a license
  • IV. BROKER LICENSES, COMPANY LICENSES, AND PLACE OF BUSINESS
    • A. Issuance of company and branch office licenses
    • B. Issuance of broker licenses
    • C. Who may serve as qualifying broker
    • D. Responsibilities of qualifying broker
    • E. Termination of qualifying broker status
    • F. Serving as qualifying broker for more than one company
    • G. Temporary qualifying broker
    • H. Associate broker status
    • I. Operating from home
  • V. RECOVERY FUND
    • A. Payment into fund
    • B. Payment from fund
  • VI. DISCIPLINARY ACTIONS AND PROCESS
    • A. Complaints
    • B. Hearings
    • C. Disciplinary actions
    • D. Rehearing
    • E. Appeals
  • VII. ESTIMATED CLOSING STATEMENT
  • VIII. TRUST FUNDS
  • IX. RECAD
  • X. VIOLATIONS WHICH MAY RESULT IN DISCIPLINARY ACTIONS
    • A. Misrepresentation and dishonest dealings
    • B. Inducing a party to break a contract
    • C. Advertising
    • D. Listing agreements
    • E. Failure to give proper disclosure
    • F. Keeping appropriate records
    • G. Rebates
    • H. Paying or receiving commissions from unlicensed persons
    • I. Failure to inform Commission of suit/judgment/other disposition
    • J. Lotteries
    • K. Handling of documents
    • L. Violation of rule or order of Commission
    • M. Offers
Examination sources

Real Estate National/General Examination for Brokers

Provider
Pearson VUE
Format
National/general portion of state real estate broker licensing examinations, scored separately from the state portion; every item is classified as knowledge, application or analysis; candidates who fail retake only the portion they failed
Exam questions
80 scored items plus 5 unscored pretest items
Examination outline
  • I. REAL PROPERTY CHARACTERISTICS, LEGAL DESCRIPTIONS, AND PROPERTY USE (BROKER 10 of 80 scored items; 2 KNOWLEDGE, 5 APPLICATION, 3 ANALYSIS)
    • A. Real property vs. personal property (3 Items): 1. Fixtures, trade fixtures, emblements; 2. Attachment, severance, and bill of sale
    • B. Characteristics of real property (2 Items): 1. Economic characteristics — a. Scarcity; b. Modification / Improvement; c. Permanence of Investment / Fixity; d. Area Preference / Situs; 2. Physical characteristics — a. Immobility; b. Indestructibility; c. Non-homogeneity / Uniqueness
    • C. Legal descriptions (2 Items): 1. Methods used to describe real property; 2. Survey
    • D. Public and private land use controls – encumbrances (3 Items): 1. Public controls – governmental powers — a. Police power, eminent domain, taxation, escheat; b. Zoning ordinances; 2. Private controls, restrictions, and encroachments — a. Covenants, conditions, and restrictions (CC&Rs), HOAs; b. Easements; c. Licenses and encroachments
  • II. FORMS OF OWNERSHIP, TRANSFER, AND RECORDING OF TITLE (BROKER 8 of 80 scored items; 2 KNOWLEDGE, 3 APPLICATION, 3 ANALYSIS)
    • A. Ownership, estates, rights, and interests (4 Items): 1. Forms of ownership; 2. Freehold estate — a. Fee simple absolute; b. Fee simple defeasible, determinable, and condition subsequent; c. Life estate; d. Bundle of rights; 3. Leasehold estates and types of leases — a. Estate for years and from period to period (periodic estate); b. Estate at will and estate at sufferance; c. Gross, net, percentage leases, and etc.; 4. Liens and lien priority; 5. Air surface and sub-surface rights
    • B. Deed, title, transfer of title, and recording of title (4 Items): 1. Elements of a valid deed; 2. Types of deeds; 3. Title transfer — a. Voluntary alienation; b. Involuntary alienation; 4. Recording the title — a. Constructive and actual notice; b. Title abstract and chain of title; c. Marketable title and cloud on title; d. Attorney title opinion, quiet title lawsuit, and title insurance
  • III. PROPERTY VALUE AND APPRAISAL (BROKER 10 of 80 scored items; 2 KNOWLEDGE, 4 APPLICATION, 4 ANALYSIS)
    • A. Concept of value (3 Items): 1. Market value vs. market price; 2. Characteristics of value; 3. Principles of value
    • B. Appraisal process (3 Items): 1. Purpose and steps to an appraisal; 2. Federal oversight of the appraisal process
    • C. Methods of estimating value and Broker Price Opinions (BPO) (4 Items): 1. Sales comparison approach (market data); 2. Cost approach — a. Improvements and depreciation; b. Physical deterioration, functional, and economic obsolescence; c. Reproduction or replacement costs; 3. Income approach; 4. Gross rent and gross income multipliers; 5. Comparative Market Analysis (CMA); 6. Broker Price Opinion (BPO); 7. Assessed value and tax implications
  • IV. REAL ESTATE CONTRACTS AND AGENCY (BROKER 15 of 80 scored items; 3 KNOWLEDGE, 6 APPLICATION, 6 ANALYSIS)
    • A. Types of contracts (2 Items): 1. Express vs. implied; 2. Unilateral vs. bilateral
    • B. Required elements of a valid contract (3 Items): 1. Voluntary; 2. Agreement / Promise; 3. Legally competent parties; 4. Lawful consideration; 5. Legal act / Purpose
    • C. Contract performance (2 Items): 1. Executed vs. executory; 2. Valid vs. void; 3. Voidable vs. unenforceable; 4. Breach of contract, rescission, and termination; 5. Liquidated, punitive, or compensatory damages; 6. Electronic contracts and digital signatures; 7. Statute of Frauds; 8. Time is of the essence
    • D. Sales contract (2 Items): 1. Offer and counteroffer; 2. Earnest money and liquidated damages; 3. Equitable title; 4. Contingencies; 5. Disputes and breach of contract; 6. Option contract and installment sales contract
    • E. Types of agency and licensee-client relationships (2 Items)
    • F. Creation and termination of agency (2 Items)
    • G. Licensee obligations to parties of a transaction (2 Items)
  • V. REAL ESTATE PRACTICE (BROKER 12 of 80 scored items; 5 KNOWLEDGE, 5 APPLICATION, 2 ANALYSIS)
    • A. Responsibilities of broker (3 Items): 1. Practicing within scope of expertise; 2. Unauthorized practice of law
    • B. Brokerage agreements between the broker and principal (seller, buyer, landlord, or tenant) (3 Items): 1. Seller representation – Types of listing agreements — a. Exclusive right-to-sell and exclusive agency listing; b. Non-exclusive or open listing; c. Net listing (conflict of interest); d. Multiple listing service (MLS); 2. Buyer representation; 3. Property management agreement — a. Accounting for funds; b. Property maintenance; c. Leasing property; d. Collecting rents and security deposits; 4. Termination of agreements; 5. Services, fees, and compensation
    • C. Fair Housing (3 Items): 1. Equal opportunity in housing; 2. Protected classes; 3. Fair housing laws; 4. Illegal practices, enforcement, and penalties; 5. Prohibited advertising; 6. Housing and Urban Development (HUD); 7. Americans with Disabilities Act (ADA)
    • D. Risk management (3 Items): 1. Supervision; 2. Compliance with federal regulations; including Privacy and Do Not Contact; 3. Vicarious liability; 4. Antitrust laws; 5. Fraud and misrepresentation; 6. Types of insurance — a. Errors and Omissions; b. General Liability
  • VI. PROPERTY DISCLOSURES AND ENVIRONMENTAL ISSUES (BROKER 9 of 80 scored items; 4 KNOWLEDGE, 3 APPLICATION, 2 ANALYSIS)
    • A. Property conditions and environmental issues (5 Items): 1. Hazardous substances — a. Lead-based paint; b. Asbestos, radon, and mold; c. Groundwater contamination and underground storage tanks; d. Waste disposal sites and brownfields; e. Flood plains, flood zones, and flood insurance; 2. Clean Air and Water Acts; 3. Environmental Protection Agency (EPA) — a. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA); b. Superfund Amendment and Reauthorization Act (SARA); c. Environmental site assessments (including Phase I and II studies) and impact statements; d. Wetlands protection
    • B. Environmental and property disclosure obligations and liability (4 Items)
  • VII. FINANCING AND SETTLEMENT (BROKER 8 of 80 scored items; 3 KNOWLEDGE, 3 APPLICATION, 2 ANALYSIS)
    • A. Financing concepts and components (2 Items): 1. Methods of financing — a. Mortgage financing – conventional and non-conventional loans; b. Seller financing – land contract/contract for deed; 2. Lien theory vs. title theory and deed of trust; 3. Sources of financing (primary and secondary mortgage markets, and seller financing); 4. Types of loans and loan programs; 5. Mortgage clauses
    • B. Lender Requirements (2 Items): 1. FHA requirements; 2. VA requirements; 3. USDA loan requirements and rural development financing; 4. Conventional requirements; 5. Buyer qualification and Loan to Value (LTV); 6. Hazard and flood insurance; 7. Private mortgage insurance (PMI) and mortgage insurance premium (MIP)
    • C. Federal Financing Regulations and Regulatory Bodies (2 Items): 1. Truth-in-Lending and Regulation Z; 2. TILA-RESPA Integrated Disclosures (TRID) — a. Consumer Financial Protection Bureau (CFPB); b. Loan Estimate (LE); c. Closing Disclosure (CD); 3. Real Estate Settlement Procedures Act (RESPA) — a. Referrals; b. Rebates; 4. Equal Credit Opportunity Act (ECOA); 5. Mortgage fraud and predatory lending
    • D. Settlement and closing the transaction (2 Items)
  • VIII. REAL ESTATE MATH CALCULATIONS (BROKER 8 of 80 scored items; 3 APPLICATION, 5 ANALYSIS)
    • A. Property area calculations (1 Item): 1. Square footage; 2. Acreage total
    • B. Property valuation (2 Items): 1. Comparative Market Analysis (CMA); 2. Net Operating Income (NOI); 3. Capitalization rate; 4. Gross rent multiplier; 5. Gross income multiplier; 6. Equity in property; 7. Establishing a listing price; 8. Assessed value and property taxes
    • C. Commission/compensation (1 Item)
    • D. Loan financing costs (1 Item): 1. Interest; 2. Loan to Value (LTV); 3. Fees; 4. Amortization, discount points, and prepayment penalties
    • E. Settlement and closing costs (1 item): 1. Purchase price and down payment; 2. Monthly mortgage calculations- principal, interest, taxes, and insurance (PITI); 3. Net to the seller; 4. Cost to the buyer; 5. Prorated items; 6. Debits and credits; 7. Transfer tax and recording fee
    • F. Investment (1 Item): 1. Return on investment; 2. Appreciation; 3. Depreciation; 4. Tax implications on investment
    • G. Property management calculations (1 Item): 1. Property management and budget calculations; 2. Tenancy and rental calculations
Examination sources