Alabama Real Estate Salesperson Exam Overview
Key Takeaways
- Alabama requires 60 hours of AREC-approved pre-license education with a hard 6-hours-per-day cap (about 11 days minimum)
- The exam is administered by PSI: 140 questions (100 national + 40 state), 3.5-hour limit, 70% required on EACH portion separately
- New salespersons receive a TEMPORARY license first; 30 hours of post-license education converts it to an original license
- Post-license must be completed within 6 months to stay active and within 12 months to avoid the license lapsing
- The Recovery Fund pays a maximum of $25,000 per transaction and $50,000 aggregate per licensee (Code of Alabama 34-27-31)
Welcome to OpenExamPrep's FREE Alabama Real Estate Salesperson exam prep guide. This comprehensive resource covers Alabama-specific regulations, licensing requirements, and state real estate laws governed by the Alabama Real Estate Commission (AREC).
About the Alabama Real Estate Commission (AREC)
The Alabama Real Estate Commission (AREC) is the state agency responsible for licensing and regulating real estate professionals in Alabama. AREC enforces the Alabama Real Estate License Law (Title 34, Chapter 27 of the Code of Alabama) and the Real Estate Consumers Agency and Disclosure Act (RECAD). It also adopts the AREC Administrative Code (Chapter 790-X), approves pre-license and continuing-education providers, and administers the Real Estate Recovery Fund.
AREC Contact Information
| Resource | Information |
|---|---|
| Website | arec.alabama.gov |
| Phone | (334) 242-5544 |
| Address | 1201 Carmichael Way, Montgomery, AL 36106 |
Alabama Licensing Requirements at a Glance
| Requirement | Details |
|---|---|
| Minimum Age | 19 years old |
| Education | High school diploma or equivalent |
| Pre-License Hours | 60 hours |
| Max Hours Per Day | 6 hours |
| Exam Provider | PSI (took over from AMP; AREC's current vendor) |
| Exam Questions | 140 total (100 national + 40 state) |
| Time Limit | 3.5 hours |
| Passing Score | 70% on each portion (70/100 national, 28/40 state) |
| Post-License Education | 30 hours within first 12 months |
Pre-License Education Requirements
Alabama requires 60 clock hours of pre-license education from an AREC-approved school before you can sit for the state licensing exam. A key Alabama-specific rule: you cannot receive credit for more than 6 hours of instruction in a single day, so the 60-hour course takes a minimum of about 11 instructional days. The course must end with a proctored final exam that you pass with 70% or higher, and the completion certificate is valid for 6 months in which to pass the state licensing exam.
Important: Missing the 6-month window means re-doing the qualifying course. Plan your exam date the moment you finish the school's final.
Course Content
The 60-hour Alabama pre-licensing course covers: Alabama license law and AREC rules; RECAD; property ownership and land-use controls; contracts and agency; real estate finance; valuation; closing procedures; fair housing; and ethics.
The Alabama Real Estate Exam
The Alabama real estate salesperson exam is administered by PSI on behalf of AREC. The national and state questions are mixed together into one continuous exam rather than presented as separate timed sections, but they are scored separately and you must clear both to pass.
Exam Structure
| Component | Details |
|---|---|
| Total Questions | 140 multiple-choice |
| National Portion | 100 questions (need 70 correct = 70%) |
| State Portion | 40 questions (need 28 correct = 70%) |
| Time Limit | 3.5 hours |
| Pre-test items | 5-10 unscored experimental questions may be embedded |
| Results | Immediate pass/fail score report at the testing center |
| Fee | Approximately $77 per attempt |
Trap: A common exam myth is that the state and national parts are "averaged." They are not. Scoring 90% national but 60% state is a fail — you re-take only the failed portion (within the retake window).
National Portion (100 questions) - content areas
Property ownership; land-use controls and regulations; valuation and market analysis; financing; general principles of agency; property condition and disclosures; contracts; transfer of title; practice of real estate; and real estate calculations. These are tested at the national level and are not Alabama-specific.
Alabama State Portion (40 questions)
AREC structure and license law; RECAD and agency disclosure; Alabama agency relationships; trust-account rules; the Real Estate Recovery Fund; license terms, renewal, and post-license education; disciplinary procedures; and Alabama's caveat emptor disclosure posture. The state portion is where most candidates lose points, so this guide concentrates there.
Step-by-Step Licensing Process
- Verify eligibility - at least 19, high school diploma/GED, good moral character, no disqualifying convictions, able to read and write English.
- Complete 60 hours of AREC-approved pre-license education (max 6 hrs/day) and pass the proctored final at 70%.
- Register and pay PSI, then pass the state exam within 6 months of finishing the course.
- Find a sponsoring qualifying broker - a salesperson license cannot be active without one.
- Apply for the Temporary Salesperson License within the AREC deadline after passing the exam. AREC issues a temporary license first for every new salesperson.
- Complete 30 hours of post-license education to convert the temporary license to an original (permanent) license.
The Temporary-to-Original Rule (heavily tested)
Alabama is unusual: a brand-new salesperson does not receive a permanent license. AREC issues a temporary license, and the licensee must complete a 30-hour post-license course and have the Original Salesperson License issued within 12 months (the clock starts the first day of the month after the temporary license is issued).
| Deadline | Consequence |
|---|---|
| Within 6 months | Required to remain on active status |
| Within 12 months | Required to be issued the original license at all |
| Miss 12 months | License lapses; must restart with the pre-license course |
Exam Tip: Distinguish the two deadlines. 6 months = keep active status; 12 months = avoid lapse entirely. Both come from the same 30-hour post-license requirement.
Costs (estimate)
| Item | Cost |
|---|---|
| Pre-License Education | $250-$500 |
| Exam Fee (PSI) | ~$77 |
| License/Recovery Fund Fees | ~$170-$210 (includes $30 Recovery Fund deposit) |
| Post-License Education | $100-$200 |
License Renewal and Continuing Education
Alabama licenses run on a 2-year cycle and expire on September 30 of every even-numbered year (regardless of when you were first licensed). For renewal of an active license, a salesperson completes 15 hours of CE: a mandatory 3-hour Risk Management: Initial Contact to Accepted Offer course plus 12 hours of electives. The penalty-free renewal deadline is August 31 of the even year; renew after that and a late fee applies; fail to renew by September 30 and the license goes inactive on October 1.
The Alabama Real Estate Recovery Fund (corrected figures)
The Recovery Fund reimburses consumers for actual or compensatory damages (not interest, court costs, or punitive damages) caused by licensee misconduct, after the consumer has obtained a court judgment they cannot collect.
| Limit | Amount |
|---|---|
| Per transaction (all claimants combined) | $25,000 |
| Aggregate per licensee | $50,000 |
| Original-license deposit each licensee pays | $30 |
Critical accuracy note: These caps come straight from Code of Alabama §34-27-31. Many third-party guides (and the earlier version of this page) list $50,000 / $100,000 — those numbers are wrong for Alabama.
RECAD in One Minute
RECAD requires AREC to publish a Real Estate Brokerage Services Disclosure form. Under Act 2025-59 (effective 2025), the form plus the broker's Agency Disclosure Office Policy (ADOP) must be given to a consumer before the licensee provides brokerage services / before a buyer tours a property, and a written brokerage agreement is required before a buyer submits an offer or before a seller's property is listed.
Real Estate SalespersonFree exam prep with practice questions & AI tutor
How many hours of pre-license education are required for an Alabama salesperson license, and what is the daily cap?
Which company currently administers the Alabama real estate licensing exam for AREC?
A candidate scores 92% on the national portion but 62% on the Alabama state portion. What is the result?
By when must a temporary salesperson complete the 30-hour post-license course to remain on ACTIVE status?
What is the maximum the Alabama Real Estate Recovery Fund will pay arising out of a single transaction?