1.3 License Maintenance and Renewal
Key Takeaways
Alabama licenses are 2-year and expire September 30 of even-numbered years; the penalty-free renewal deadline is August 31
Salespersons renew with 15 hours of CE: a mandatory 3-hour Risk Management: Initial Contact to Accepted Offer course plus 12 electives
Brokers also need 15 hours but with 6 mandatory hours (Risk Management plus a broker course) and 9 electives
The one-time 30-hour post-license requirement (first year) is separate from the recurring 15-hour CE requirement
A license is inactive when not affiliated with a broker; you cannot practice while inactive, expired, suspended, or revoked
Alabama licenses require ongoing maintenance through post-license education (first year only), biennial renewal, and continuing education every cycle.
License Term and the Even-Year Cycle
Every Alabama real estate license runs on a 2-year cycle and expires on September 30 of every even-numbered year, no matter when it was first issued. A license issued mid-cycle still expires at the next even-year September 30. The penalty-free renewal window closes August 31 of the even year.
| Item | Detail |
|---|---|
| License term | 2 years |
| Expiration | September 30 of even-numbered years |
| Penalty-free renewal deadline | August 31 of the even year |
| Inactive on | October 1 if not renewed |
Post-License Education (new salespersons)
A new salesperson holds a temporary license and must complete a 30-hour post-license course to obtain the original (permanent) license:
| Milestone | Deadline | Why it matters |
|---|---|---|
| Complete 30 hrs + be issued original license | Within 6 months | Required to stay on active status |
| Complete 30 hrs + be issued original license | Within 12 months | Outer limit; miss it and the license lapses |
Critical distinction: Post-license (30 hours, first year, one time) is not the same as continuing education (15 hours, every renewal). The 30-hour requirement does not repeat.
Continuing Education (every renewal cycle)
Salesperson CE - 15 hours
| Course | Hours |
|---|---|
| Risk Management: Initial Contact to Accepted Offer (mandatory) | 3 hours |
| AREC-approved electives | 12 hours |
| Total | 15 hours |
Broker CE - 15 hours
| Course | Hours |
|---|---|
| Risk Management (mandatory) | 3 hours |
| Mandatory broker course | 3 hours |
| AREC-approved electives | 9 hours |
| Total | 15 hours |
A salesperson's mandatory course is the 3-hour Risk Management: Initial Contact to Accepted Offer; brokers take an additional 3-hour mandatory broker course, so their 6 mandatory hours leave only 9 electives. All CE must be completed by September 30 of the renewal (even) year, and only AREC-approved courses count.
Exam Tip: For salespersons remember 15 total, 3 of which are mandatory Risk Management, 12 electives. The 30-hour figure is post-license, not CE - don't mix them.
Renewal Process
- Complete the required CE before the deadline.
- Log into AREC Online Services and submit the renewal.
- Pay the renewal fee (and any late penalty if after August 31).
- Receive the renewed 2-year license.
AREC sends renewal reminders, but the licensee is responsible for renewing on time.
Late Renewal and Expired Licenses
| Situation | What happens |
|---|---|
| Renew after Aug 31 but by Sept 30 | Late penalty applies |
| Not renewed by Sept 30 | License placed inactive on October 1; cannot practice |
| Lapsed beyond AREC's grace limits | May require re-examination and re-application as a new applicant |
Warning: You cannot practice real estate while your license is expired or inactive. Doing so is unlicensed activity - a separate, serious violation.
License Status Types
| Status | Meaning | Can practice? |
|---|---|---|
| Active | Current and affiliated with a broker | Yes |
| Inactive | Valid but not affiliated with a broker (or CE not met) | No |
| Expired | Not renewed | No |
| Suspended | Temporary loss from discipline | No |
| Revoked | Permanent cancellation | No |
A salesperson's license goes inactive when they leave a broker without transferring, fail to meet CE, or voluntarily request inactive status. Reactivating requires affiliating with a broker and clearing any outstanding education.
Required Notifications
Licensees must notify AREC of key changes (commonly within statutory timeframes set in the License Law) including:
- Change of broker affiliation (transfer)
- Change of business or mailing address
- Change of legal name
- Becoming inactive or returning to active status
Changes are processed through AREC Online Services. Failing to keep AREC informed - particularly a broker change - is itself a disciplinable lapse.
Common Renewal Mistakes (and the Right Answer)
| Scenario | What actually happens |
|---|---|
| "I'll renew on Sept 15, it's before the 30th" | A late fee already applies after Aug 31 |
| "I let it expire but kept showing homes" | Unlicensed activity - a separate, serious violation |
| "I did 30 hours of CE so I'm covered for years" | 30 hours is one-time post-license, not recurring CE (15 hrs/cycle) |
| "I moved brokers and didn't tell AREC" | License becomes/stays improperly recorded; must notify AREC of the transfer |
Active vs. Inactive - the Practical Difference
An active license, affiliated with a broker and current on CE, is the only status that lets you list, sell, or earn commissions. An inactive license still "exists" but conveys no authority to practice. A licensee may voluntarily go inactive (e.g., a career break) and later reactivate by affiliating with a broker and completing any outstanding CE.
Exam Tip: "Can a licensee earn a commission while inactive?" - No. Only an active license, held by a sponsoring broker, supports compensated real estate activity.
Reinstatement After Lapse
If a license lapses beyond AREC's allowed reinstatement window, the former licensee generally must reapply as a new applicant - potentially repeating education and re-examination. This is why AREC stresses renewing on time: a lapse can erase years of standing and force a fresh start through the pre-license course and exam.
How many continuing education hours must an Alabama salesperson complete each renewal cycle, and how many are mandatory?
12 hours, none mandatory
18 hours, 6 mandatory
24 hours, all elective
15 hours, 3 mandatory (Risk Management)
On what date do Alabama real estate licenses expire?
September 30 of even-numbered years
December 31 each year
June 30 of odd years
The anniversary of issuance
How does the 30-hour post-license requirement differ from continuing education?
They are the same requirement
Both are 30 hours every two years
Post-license repeats every renewal; CE is one-time
Post-license is a one-time first-year requirement; CE is 15 hours every renewal cycle
A salesperson leaves their broker without transferring to a new one. What is the status of their license?
Active
Revoked
Inactive - cannot practice until affiliated with a broker
Expired
Sections you finish are checked off in the contents.