Pass Your Alabama Real Estate Exam the First Time

AL is a "Caveat Emptor" (Buyer Beware) state. Students often confuse this with the "Full Disclosure" rules taught in national prep.

Questions

120

80 NAT / 40 STATE

To Pass

70%

SCALED SCORE

Time Limit

3.5 Hrs

210 TOTAL MINUTES

Provider

Pearson VUE

AREC

Pass your Alabama Salesperson or Broker License

Alabama is one of the only states still operating under Caveat Emptor, and every candidate trained on national materials walks in expecting rules that do not apply here.

Courses built for a national audience teach seller disclosure as the default. Alabama takes a different approach, and the gap between what candidates expect and what AREC actually enforces is wide enough to fail entire sections. AI generated question banks were built for states with mandatory disclosure regimes. The content that defines Alabama exam performance was never part of those banks because those banks were not written by people who practice in this state.

The License Professor is built by licensed Alabama professionals who know what AREC tests. Every question on AREC regulations, trust accounting rules, and brokerage procedures is drawn from Alabama law and Commission rule, not from a shared national bank.

Alabama Sample Exams

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Salesperson

Individuals new to real estate who want to start their career helping clients buy and sell property

Broker

Experienced professionals who want to operate independently or run their own brokerage

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Alabama Real Estate Practice Questions

Sample questions from the Alabama real estate exam — with answers and explanations.

1. After buyer Priya tells salesperson Robert she won't sign an agency agreement and wants to negotiate independently, Robert is later asked by the seller to represent the seller's interests in that same transaction. Is Robert legally barred from doing so because he previously acted as Priya's transaction facilitator?

  1. A.Yes, once he facilitates for one party he can never represent anyone else in that transaction.
  2. B.No, because Robert never became Priya's agent as a facilitator, he is not barred by a prior fiduciary relationship with her from later representing the seller in the same transaction.
  3. C.Yes, but only if Priya objects in writing within 10 days.
  4. D.No, but only if Priya pays Robert a release fee first.
Explanation: Under Ala. Code Section 34-27-82(b), a licensee with no written agency agreement is a transaction facilitator and not an agent, so Robert never owed Priya loyalty, and Rule 790-X-3-.14(4)(c) expressly lets a licensee represent one party as an agent while serving as transaction facilitator for the other. The trap is thinking that helping a buyer creates a lasting fiduciary tie, when a facilitator's duties under Section 34-27-84 are honesty, reasonable care, confidentiality, and presenting offers, not advocacy. That confidentiality duty survives the switch, so Robert still cannot pass along anything Priya told him in confidence. He needs a signed agency agreement with the seller before acting as the seller's agent, and the offer's representation disclosure clause under Section 34-27-82(i) has to reflect his real role.

2. How long must an Alabama broker retain transaction records and documentation after a real estate transaction closes?

  1. A.1 year from closing date
  2. B.2 years from closing date
  3. C.3 years from closing date
  4. D.5 years from closing date
Explanation: Ala. Code Section 34-27-36(b)(30) makes it a violation for a qualifying broker or company to fail to keep copies of all contracts, leases, listings, and other records pertinent to real estate transactions for three years, and Section 34-27-36(b)(8)c sets the same three years for records of funds held for others. Five years is the tempting answer because many firms and lenders keep files longer out of caution, but the Alabama statute says three. Since the statute does not say when the three years start, keep failed and open transaction files too rather than purging from a closing date that may never come.

3. A single-family home in Alabama that the owner occupies as a primary residence has a fair market value of $260,000. Alabama assesses owner-occupied residential property (Class III) at 10 percent of fair market value, and the combined state, county, and local millage on the property is 42 mills. Before any homestead exemption, what is the annual ad valorem property tax?

  1. A.$109.20
  2. B.$1,092
  3. C.$2,184
  4. D.$10,920
Explanation: Ala. Code Section 40-8-1(a) assesses Class III property, which includes owner-occupied single-family residential property, at 10 percent of fair and reasonable market value, so the assessed value is $260,000 x 0.10 = $26,000. One mill is $1 of tax per $1,000 of assessed value, so 42 mills is 0.042, and $26,000 x 0.042 = $1,092. Applying the millage to the full $260,000 market value gives $10,920, the most common error, because it skips the Class III assessment ratio entirely. Using the 20 percent Class II ratio gives $2,184, but Class II is the ratio for property not otherwise classified, such as commercial and rental property, not an owner-occupied home.

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Alabama Real Estate Exam Structure: What to Expect

The Alabama Salesperson exam combines 80 general questions and 40 state-specific questions — 120 scored questions total, plus 10-15 unscored pretest items — in 210 minutes (3.5 hours). Pearson VUE reports one overall scaled score covering both portions combined, not a separate pass/fail threshold per portion — a scaled score of 70 or higher on the combined exam is a pass.

Question breakdown

General portion: 80 questions

Standard Pearson VUE national content.

Alabama portion: 40 questions

Topics:

  • Violations & Disciplinary Actions (15 questions) — the largest single category
  • Licensing Requirements (7 questions)
  • Broker Licenses, Company Licenses, and Place of Business (5 questions)
  • RECAD (3 questions)
  • License Status, Recovery Fund, Trust Funds, Estimated Closing Statement (10 questions combined)

The Broker exam uses this same 120-question, 3.5-hour structure and 70-point passing threshold as the Salesperson exam — if you've reviewed the breakdown above, you already know what to expect.

Time management

210 minutes for 120 scored questions = 105 seconds per question. Generous.

Cost structure

  • Pre-licensing (60 hours): $300-$600
  • Exam: $73
  • License: $30
  • Background check: ~$40
  • Total: $443-$743

Retake rules

Retakes allowed within your 6-month exam authorization window (unlimited attempts). $73 per attempt. A passing result is valid for 90 days when applying for your license.

Topics Covered on the Alabama Real Estate Exam

National Exam Topics (80 questions)

  1. Property Ownership — Estates, deeds, easements
  2. Land Use Controls — Zoning, government powers
  3. Valuation — Three approaches, CMA
  4. Financing — Mortgages, FHA/VA, RESPA, TILA
  5. Agency Principles — National agency framework
  6. Disclosures — Federal disclosures including lead paint
  7. Contracts — Listing agreements, purchase contracts
  8. Leasing — Lease provisions, landlord-tenant law

Alabama State Exam Topics (40 questions)

  1. Violations & Disciplinary Actions — Misrepresentation, advertising rules, failure to disclose, commingling — by far the largest state-portion category
  2. Alabama Licensing Requirements — Title 34 Chapter 27, AREC rules, qualifications, renewal, CE
  3. Broker Licenses, Company Licenses, and Place of Business — Qualifying broker rules, branch offices
  4. RECAD — Brokerage Services Disclosure, Agency Disclosure Office Policy, single agency vs. transaction brokerage
  5. License Status, Recovery Fund, Trust Funds, Estimated Closing Statement — smaller but scored categories

Why this list matters

Per AREC's official content outline (effective February 1, 2026), Violations Which May Result in Disciplinary Actions is 15 of the 40 state questions — more than a third of the state portion, and the largest single category by far. Licensing Requirements is next at 7. RECAD, despite the attention it gets in national prep courses, is only 3.

Source: AL state content outline #093301, effective 2026-02-01.

What this list doesn't tell you

Pearson VUE writes scenario-based questions. Practice questions, not just topic review.

Alabama Exam FAQ

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