Alabama Real Estate Salesperson Exam Overview
The Alabama Real Estate Salesperson Exam is administered by PSI (Pearson VUE) on behalf of the Alabama Real Estate Commission (AREC). Alabama has unique requirements including a minimum age of 19 and comprehensive coverage of the RECAD (Real Estate Consumers Agency and Disclosure Act).
Passing this exam qualifies you to work as a real estate salesperson in Alabama—a state with growing markets in Birmingham, Huntsville, and the Gulf Coast region.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 140 multiple-choice |
| National Portion | 100 questions |
| State Portion | 40 questions |
| Time Limit | 4 hours total |
| Passing Score | 70% on each portion |
| Exam Fee | Approximately $77 |
| Additional Requirements | Details |
|---|---|
| Pre-licensing Education | 60 hours required |
| Minimum Age | 19 years (higher than most states) |
| Testing Vendor | PSI (Pearson VUE) |
| License Term | 2 years (expires September 30, even years) |
| Post-License Education | 30 hours within first year |
Why Get Licensed in Alabama?
- Growing markets — Birmingham, Huntsville, Mobile, Gulf Coast
- Affordable entry — Lower cost of living attracts buyers
- Manufacturing boom — Automotive industry driving growth
- Retirement destination — Gulf Shores and coastal areas
- Military presence — Significant base population
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Key Topics Covered on the Exam
1. AREC & Licensing (20%)
Alabama Real Estate Commission:
- Nine members appointed by Governor
- Seven licensed brokers, two public members
- Authority to investigate, audit, and discipline
- Real Estate Recovery Fund administration
- Alabama Real Estate License Law
License Requirements:
- 19 years old minimum (higher than most states)
- High school diploma or GED required
- 60 hours pre-license education
- Background check with fingerprints
- Sponsoring broker required
Post-License Requirements:
- 30 hours within first year
- Failure results in inactive license
- Separate from continuing education
2. RECAD & Agency (25%)
Real Estate Consumers Agency and Disclosure Act:
- Alabama's agency disclosure law
- Updated by Act 2025-59 and Act 2025-380
- Effective May 1, 2025 and October 1, 2025
- Disclosure timing requirements
- Written agency agreements
Agency Relationships:
- Seller agency
- Buyer agency
- Dual agency (limited representation)
- Designated agency option
- Transaction broker
Disclosure Requirements:
- Agency disclosure at first substantive contact
- Written disclosure forms required
- Material fact disclosure obligations
- Seller's Disclosure Statement
3. Contracts & Trust Accounts (30%)
Contract Requirements:
- Offer and acceptance procedures
- Earnest money handling
- Contract contingencies
- Alabama-specific contract forms
- Addenda and amendments
Trust Account Regulations:
- Broker supervision requirements
- Deposit timing rules
- Commingling prohibitions
- Record-keeping requirements
- AREC audit procedures
Closing Procedures:
- Proration calculations
- Settlement statement review
- Document recording
- Title insurance
4. Property Law & Fair Housing (25%)
Alabama Property Law:
- Real vs. personal property
- Ownership types
- Landlord-tenant regulations
- Mechanics liens
- Property taxation
Fair Housing:
- Federal Fair Housing Act
- Alabama fair housing laws
- Protected classes
- Exemptions and exceptions
- Enforcement procedures
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | AREC regulations and licensing | 15-20 |
| Week 2-3 | RECAD and agency relationships | 18-22 |
| Week 3-5 | Contracts and trust accounts | 22-28 |
| Week 5-6 | Property law and fair housing | 15-20 |
| Week 6-7 | Practice exams and review | 18-22 |
Total recommended study time: 90-110 hours (plus 60-hour pre-licensing)
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Alabama Real Estate exam.
Alabama-Specific Exam Tips
1. Know the Age Requirement
Alabama requires applicants to be 19 years old:
- Higher than most states (typically 18)
- Common exam question
- Combined with high school diploma/GED
2. Master RECAD
The Real Estate Consumers Agency and Disclosure Act:
- Recently updated (2025 amendments)
- Disclosure timing critical
- Agency relationship definitions
- Written agreement requirements
3. Understand the Recovery Fund
Alabama Real Estate Recovery Fund details:
- Maximum $50,000 per transaction
- Maximum $100,000 per licensee
- Court judgment required first
- License revoked if claim paid
- Covers actual damages only
4. Key Numbers to Remember
| Topic | Alabama Requirement |
|---|---|
| Minimum age | 19 years |
| Pre-license education | 60 hours |
| Post-license education | 30 hours (first year) |
| CE per renewal | 15 hours |
| License term | 2 years |
| Passing score | 70% each portion |
| Recovery Fund max/transaction | $50,000 |
Common Mistakes to Avoid
- Forgetting the 19-year age requirement — Higher than typical 18
- Ignoring RECAD updates — 2025 amendments are testable
- Missing post-license deadline — 30 hours in first year
- Confusing CE with post-license — Different requirements
- Recovery Fund details — Know the maximums and process
After Passing the Exam
- Pass both exam portions — 70% on national and state
- Submit license application to AREC
- Pay application fee ($125)
- Complete background check with fingerprints
- Find sponsoring broker — Required for salespersons
- Complete 30 hours post-license within first year
- Complete 15 hours CE every 2 years
- Begin your real estate career in Alabama
2026 Alabama Updates
Key updates for 2026 testing:
- RECAD amendments (Act 2025-59, Act 2025-380)
- Updated agency disclosure procedures
- Enhanced trust account requirements
- Digital transaction standards
- Continuing education course updates
Start Your Alabama Real Estate Career Today
The Alabama Real Estate Salesperson license opens doors to growing markets across the state. From Birmingham to the Gulf Coast, Alabama offers diverse opportunities for real estate professionals. With proper preparation, you can pass both exam portions on your first attempt.
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- AREC and RECAD content
- Trust account requirements
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.