Free Alabama Real Estate Practice Exam Questions (May 2025) 40+

Regarding real estate licenses reciprocity, Alabama has reciprocity agreements with most states but requires Commission-approved 6 hour Reciprocal Salesperson Pre-license course covering Alabama License Law. Read More Here

Unlike some states, Alabama has no minimum. The amount is completely negotiable by the buyer and the seller.

RECAD forms are included in copies of documents that must be kept by the licensee for at least 3 years. Per Alabama License Law Article 3 Section 34-27-36. Read More Here

A licensee advertising personally owned property as "For Sale by Owner" without a real estate company or qualifying broker's name in ad or on sign. Alabama Real Estate Commission Rule 790-X-1-.03 (2) provides that any person who elects to become licensed as a broker or salesperson may advertise property of which they are the owner in the same way as any private party.

The Governor is in charge of handling the appointment of members. Per Alabama License Law Article 1 Section 34-27-7. Read More Here

“The fee for a temporary license shall be one hundred fifty dollars ($150).” Per Alabama License Law Article 2 Section 34-27-35. C1. Read More Here

“(2) Payments for claims based on judgments or settlements against any one person shall not exceed fifty thousand dollars ($50,000) in the aggregate. (3) Payments for claims arising out of the same transaction shall not exceed twenty-five thousand dollars ($25,000) in the aggregate, regardless of the number of claimants.” Per Alabama License Law Article Section 34-27-31 B1, B2.

“A license for a broker or a salesperson shall be registered to a specific real estate office and shall be issued only to, and held only by, a person who meets all of the following requirements - 4: Is at least 19 years old” Per Alabama License Law Article 2 Section 34-27-32 A4. Read More Here

All of the options would be violations. These examples would fall under the Kickback category. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

All of the following actions are allowed aside from showing property. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

Commingling is when a licensee mixes funds held in care for a client with their own funds.

“When an aggrieved person commences an action for a judgment which may result in collection from the Recovery Fund, the aggrieved person shall notify the commission in writing, by certified mail, return receipt requested, to this effect at the time of the commencement of the action.” Per Alabama License Law Article 2 Section 34-27-31 E1. Read More Here

The holder of a temporary license must complete the course within six months of issuance of his or her temporary license and have his or her original license issued, otherwise his or her temporary license certificate shall automatically be placed on inactive status by the commission.” Per Alabama License Law Article 2 Section 34-27-33 C2.

Two terms. “No member shall serve for more than two consecutive terms of office, except, however, each member shall hold office until his or her successor is appointed by the Governor and confirmed by the Senate.”Per Alabama License Law Section 34-27-7 C. Read More Here

Placing a sign on any property offering it for sale, lease, or rent without the consent of the owner is a violation of Alabama License Law. All violations are clearly defined on Alabama License Law Article 2 Section 34-27-36 C. Read More Here

All of the options would be classified as a violation as they are legally considered rebates. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

All of the following actions are prohibited aside from delivering information and forms to a mortgage company and closing attorney or agent as part of the preparation for closing. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

“(a) Any person or corporation which violates any provision of this chapter commits a Class A misdemeanor and, on conviction, shall be punished accordingly.” Per Alabama License Law Article 1 Section 34-27-11 A,B.

“At hearings, all witnesses shall be sworn by a member of the commission, the executive director, the assistant executive director, or a hearing officer. The commission shall render a written order within 30 days from the final date of hearing.” Per Alabama License Law Article 1 Section 34-27-37 A.

No it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. Commingling is illegal in Alabama.

The Recovery Fund is a special fund established by Alabama Real Estate Law that provides reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The fund is designed to protect consumers.

Under Alabama License Law offering real estate or improvements as prizes in games of chance is a violation of license law.

The license expires. Be careful with language here. Remember, a suspended license, a revoked license and an expired license are all different things.

15 hours of CE approved by the Commission is required every renewal cycle. Six hours of Alabama Risk Management are required and the other 9 hours can be approved courses of your choosing.

Alabama state law requires that copies of ALL documents, including escrow account activity, MUST be kept by the licensee for at least 3 years. “Failing to keep for at least three years a complete record of funds belonging to others showing to whom the money belongs, date deposited, date of withdrawal, and other pertinent information.” Per Alabama License Law Article 3 Section 34-27-36. Read More Here

Generally speaking it's two years, in some cases it's more but that's a case by case basis. “No licensee under this article whose license hereunder has been revoked may apply for another license hereunder until at least two years after the date of such revocation; and, in the event of such application for reinstatement, he or she shall meet all the requirements imposed upon an original applicant for a license under this article; and, furthermore, shall not be relicensed without approval of such relicensing by a majority of the members of the Alabama Real Estate Commission.” Per Alabama License Law Article 3 Section 34-27-69 B. Read More Here

A suspended license is temporarily unable to be used. Licensees may be able to get their license back at some point, but as long as the license is suspended, they cannot practice real estate. A suspended license is temporarily inactive until the commission decides to reactivate the license or revoke it. If it is revoked, it becomes a revoked license. A revoked license is inactive indefinitely unless reinstated through the reinstatement process.

“Licensees are required to provide the Real Estate Brokerage Services Disclosure form to the consumer as soon as reasonably possible for his or her signature. Consumers are not required by law to sign the form, although the licensee should encourage that it be signed. If the consumer declines to sign, the licensee shall make a note to this effect on the form.” Per Alabama License Law Rule 790-X-3-.13. Read More Here

“Each licensee shall notify the commission within 10 days after notice to him or her of the institution of any criminal prosecution against him or her, or of a civil summons and complaint against him or her, if the subject matter of the civil complaint involves a real estate transaction or involves the goodwill of an existing real estate business.” Per Alabama License Law Article 1 Section 34-27-31 J.

“Any salesperson or associate broker who desires to change his or her qualifying broker shall give notice in writing to the commission, and shall send a copy of the notice to his or her qualifying broker. The new qualifying broker shall file with the commission a request for the transfer and a statement assuming liability for the licensee. On payment of a fee of twenty-five dollars ($25), a new license certificate shall be issued to the salesperson or associate broker for the unexpired term of the original license.” Per Alabama License Law Article 2 Section 34-27-34 B. Read More Here

All individuals who hold an active Alabama real estate salesperson's license are required to complete continuing education every two years. “Every two years a total of fifteen (15) clock hours of continuing education prescribed by the Commission is required for renewal of an active license. These hours must be completed by September 30 of every even year.”

“The holder of a temporary license shall not be issued an original license until he or she has satisfactorily completed a 30-hour post-license course prescribed by the commission. The holder of a temporary license must complete the course within six months of issuance of his or her temporary license and have his or her original license issued, otherwise his or her temporary license certificate shall automatically be placed on inactive status by the commission.” Per Alabama License Law Article 2 Section 34-27-33 C2.

If an affiliated licensee violates license law, the law states that both the qualifying broker and licensee will be held responsible for the damage caused.

The Alabama Real Estate Commission administers and enforces the laws of the state relating to real estate activities. "To uphold, protect, and promote the public interest, which embraces the interests of regulated licensees and entities and the interest of consumers, by the fair and impartial development and administration of licensing laws and regulations." Their mission is to serve the public through the licensing and regulating of real estate licensees. Read More Here

“A temporary license shall be valid only for a period of one year following the first day of the month after its issuance.” Per Alabama License Law Article 2 Section 34-27-33 C1. Read More Here

All of the options are violations of Alabama License Law. The violations are clearly defined on Alabama License Law Article 2 Section 34-27-36 C. Read More Here

“Within 90 days after passing the examination, the applicant shall secure a qualifying broker and meet all requirements of this chapter and the board shall issue an active license or classify the license as inactive.” Per Alabama License Law Article 2 Section 34-27-33 B. Read More Here

September 30, on even numbered years. All licenses, except temporary salesperson and temporary broker licenses, expire at midnight on September 30. Temporary brokers may renew their salesperson license. Read More Here

Payment of a fee to a licensee by a carpet installer for referral of business would be classified as a violation as it is considered a rebate. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here

All of the following actions are allowed aside from Preparing or discussing a listing or property management agreement with an owner. Per Gifts, Rebates, and Kickbacks, by Alabama general counsel. Read More Here