Key Takeaways
- The Alabama Real Estate Commission (AREC) regulates real estate licensees under the Alabama Real Estate License Law
- AREC consists of nine members appointed by the Governor: seven licensed brokers and two public members
- AREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- The Real Estate Research and Education Center at the University of Alabama provides education and research support
- Alabama requires 60 hours of pre-license education for salesperson applicants
Alabama Real Estate Commission (AREC)
The Alabama Real Estate Commission (AREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Alabama under the Alabama Real Estate License Law.
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AREC Structure and Authority
Commission Members
AREC consists of nine members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers | 7 | Active Alabama broker license |
| Public members | 2 | Not licensed in real estate |
Members serve five-year staggered terms with terms expiring on different years.
Key AREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Recovery Fund | Administer the Real Estate Recovery Fund |
Alabama Real Estate License Law
The Alabama Real Estate License Law is the primary statute governing real estate licensing in Alabama. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
AREC Administrative Code
AREC adopts administrative rules that implement the License Law. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- RECAD (agency disclosure) procedures
Exam Tip: AREC can impose administrative penalties and revoke licenses. Recent legislative changes (Act 2025-59 and Act 2025-380) have updated RECAD requirements effective May 1, 2025, and October 1, 2025.
Real Estate Recovery Fund
The Alabama Real Estate Recovery Fund provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| Maximum per transaction | $50,000 |
| Maximum per licensee | $100,000 total |
| Filing requirements | Must obtain court judgment first |
| License consequence | License revoked if claim paid |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to AREC for payment from Recovery Fund
- AREC pays from fund (if eligible)
- Licensee's license is automatically revoked
Key Point: The Recovery Fund covers actual damages only—not punitive damages, attorney fees, or court costs.
AREC Contact Information
| Resource | Information |
|---|---|
| Website | arec.alabama.gov |
| Main Office | Montgomery, Alabama |
| Phone | (334) 242-5544 |
| Online System | AREC online licensing portal |
How many members serve on the Alabama Real Estate Commission?
What is the maximum amount the Alabama Real Estate Recovery Fund can pay per transaction?