1.2 Alabama License Requirements

Alabama sets specific age, education, examination, and character requirements for salesperson and broker licenses. The state portion of the exam tests these numbers directly.

Salesperson License Requirements

1. Age, Residency, and Character

• Be at least 19 years of age (Alabama's minimum is higher than the 18 used by most states).
• Be a U.S. citizen, permanent resident alien, or legally present with authorization to work.
• Hold a high school diploma or GED.
• Show good moral character and disclose any criminal history; AREC reviews convictions case-by-case rather than applying an automatic lifetime bar.

Trap: Memorize 19, not 18. A favorite state-portion distractor is the national norm of 18.

2. Education

Complete 60 clock hours of AREC-approved pre-license education and pass the proctored school final at 70%. No more than 6 credit-hours may be earned per day. The certificate is valid 6 months for taking the state exam.

3. Examination

Correction: Some sources show "4 hours" - the current AREC/PSI allotment is 3.5 hours for the combined 140-question exam.

4. Fingerprints and Background Check

All applicants submit fingerprints through AREC's approved vendor for a state and FBI criminal-history review. AREC weighs the nature, recency, and relevance of any conviction - fraud, theft, or dishonesty offenses, and crimes tied to real estate, weigh most heavily.

Broker License Requirements

A broker license is a step up and is sometimes tested for contrast on the state portion.

The broker exam uses the same 140-question structure (100 national + 40 state) but raises the bar to 75% on each portion and adds brokerage-management content.

Exam Tip: Two scoring numbers to keep straight - salesperson 70%, broker 75%, each portion scored separately.

The Sponsoring Broker Requirement

An Alabama salesperson can never act independently. After passing the exam, you must affiliate with a qualifying broker who supervises your activity, holds all client funds in the brokerage trust account, and is responsible for your compliance with the License Law. Your license is delivered to and held by that broker; leaving the broker without transferring places the license on inactive status, and you may not practice while inactive.

Application Process (salesperson)

1. Complete the 60-hour pre-license course and pass the proctored final (70%).
2. Register with PSI and pass the 140-question exam (70% each portion) within 6 months.
3. Submit the AREC application with required fees and fingerprints.
4. Identify a sponsoring qualifying broker.
5. Receive your Temporary Salesperson License.
6. Complete the 30-hour post-license course and obtain the Original Salesperson License within 12 months (6 months to stay active).

Reciprocity and Out-of-State Applicants

Alabama issues reciprocal licenses to qualifying licensees from many states, typically requiring the applicant to pass the Alabama state portion (not the national portion) and to affiliate with an Alabama broker. Non-resident licensees consent to AREC jurisdiction and Alabama service of process. Because terms vary by the originating state, candidates should confirm the current reciprocal list on arec.alabama.gov.

Key Point: Reciprocity usually waives the national portion and the 60-hour course but not the Alabama state-law exam - you still must prove you know RECAD, trust-account rules, and the Recovery Fund.

Putting the Numbers in One Place

The state portion loves precise figures. Memorize this consolidated table and you will answer most "how many / how long" questions:

Why the Temporary License Exists

Alabama's temporary-then-original structure exists so that new agents begin working quickly after passing the exam while still being required to finish their professional preparation through the 30-hour post-license course. The temporary license has full authority to practice (under a broker), but it is time-limited: complete the post-license course and obtain the original license within 12 months (6 months to stay active) or the license lapses entirely.

Exam Tip: If asked "what kind of license does a brand-new Alabama salesperson first receive?" the answer is a temporary salesperson license, not a permanent one. This is one of Alabama's most distinctive and most-tested features.