Educational Resources: Take Alabama Real Estate Sample Tests, Application Steps and Tips

After satisfying your specific pre-licensing requirements including completing the required 60 hours of approved pre-licensing coursework, the next step is passing the Alabama real estate license exam administered by Pearson VUE.¹

The test contains both a national section and an Alabama state-specific section.

The exams feature multiple choice questions testing general real estate knowledge along with Alabama real estate laws and regulations.

Real Estate Exam Overview

Here are key facts about the Alabama real estate exam:

• Format: Computer-based with multiple-choice questions
• Length: 140 questions total
  • 100 National section questions
  • 40 State section questions
• Time limit: 210 minutes total (3.5 hours)
  • 150 minutes for the National section
  • 60 minutes for the State section
• Passing score: Minimum 70%
  • 70/100 in the national section
  • 28/40 in the state section
• Registration fee: $70 for each attempt payable directly to Pearson VUE
• Average first-time Pass rate: 63%

Exam reservations can be made online at Pearson VUE’s website or by calling (888) 896-5824.¹ Reservations should be made at least 24 hours before the desired exam date.

Walk-in exams are not available. Exam fees must be paid during reservation by credit or debit card.

Fees are non-refundable once scheduled.

Exams are given at approved Pearson VUE test centers in Alabama and other states. Candidates can locate centers on the Pearson VUE website or by calling them.²

Military members can take the exam at selected bases without returning to Alabama.³

On Exam day, candidates are advised to arrive 30 minutes before the exam starts time with a valid government-issued photo ID and secondary ID. Exams are scored immediately after completion and passing candidates are issued with a combined document containing the exam score report and application for the Temporary Salesperson’s License.

As such, to proceed with licensure, applicants must pass both the national and state law portions independently within a single exam sitting to qualify for licensure. You have unlimited attempts within 6 months from your first exam to try to pass both the national and state portions.

If a candidate cannot pass the exam in 6 months, they must retake the pre-licensing course and seek authorization again to sit for the exam.

Exam Content Outline: National Section

Below are the areas tested in the national portion of the exam. The general examination also contains five (5) pretest items that are not counted toward the score.

• Real property characteristics, property use, and legal descriptions (5 knowledge, 2 application, 2 analysis)
• Forms of property ownership, transfer, and recording of title (4 knowledge, 3 application, 1 analysis)
• Property value and appraisal (5 knowledge, 5 application, 1 analysis)
• Real estate agency and contracts (8 knowledge, 6 application, 2 analysis)
• Real estate practice (9 knowledge, 3 application, 2 analysis)
• Property disclosures and environmental issues (5 knowledge, 2 application, 1 analysis)
• Financing and settlement (4 knowledge, 2 application, 1 analysis)

Sample National Exam Question:¹⁹

A client is purchasing a home for $320,000 with a 20% down payment. The loan will be amortized over 30 years.

If the interest rate is 5% per annum on the mortgage loan, what will be the amount of the monthly payment that the buyer will have to pay?

A. $1,581
B. $1,250
C. $1,349
D. $1,452

Exam Content Outline: State Section

Below are the areas tested in the state portion of the exam. The examinations also contain five to ten (5-10) pretest items.

The pretest items are not identified and will not affect a candidate’s score in any way.

• Purpose of license law/rules and regulations and role of commission (1 item)
• Licensing requirements (7 items)
• License status (2 items)
• Broker licenses, company licenses, and place of business (5 items)
• Recovery fund (2 items)
• Disciplinary actions and process (2 items)
• Estimated closing statements (1 item)
• Trust funds (2 items)
• RECAD (3 items)
• Violations which may result in disciplinary actions (15 items)

Sample Alabama State Exam Question:²⁰

A real estate licensee is required to have a _________ relationship with all parties to a real estate transaction.

A. Fiduciary
B. Contractual
C. Privity
D. Working

Proper preparation is key to passing this challenging exam. Investing in exam prep courses and study materials can greatly improve your chances of passing the first time.

Don’t underestimate the value of practice tests, study guides, and prep classes.

Submitting Alabama Real Estate Commission Application (5 Steps)

Once you pass the licensing exam, prospective agents have 90 days to turn in a completed real estate license application to the Alabama Real Estate Commission for the Temporary Salesperson’s License.

Here are the steps to successfully submit your Alabama real estate salesperson license application:

Step 1: Gather Required Documentation

In addition to filling out the application forms, you’ll need to gather documentation to include:

• Fingerprints completed by Fieldprint
• Proof of age (driver’s license, passport, etc.)
• High school diploma or GED
• Proof of U.S. legal presence or citizenship
• Proof of Alabama residency

Step 2: Select License Type

Decide whether you want an active or inactive license. To get an active license, you’ll need to already have a sponsoring broker lined up.

Step 3: Pay Required Licensing Fees

Active license fees total $210 ($150 license fee, $30 research/education fee, $30 recovery fund fee).

Inactive license fees total $180 ($150 license fee, $30 recovery fund fee).

Step 4: Submit to the Alabama Real Estate Commission

Mail your completed application, supporting documents, and licensing fees to:

Alabama Real Estate Commission
Attn: Licensing Division
1201 Carmichael Way
Montgomery, AL 36106

Step 5: Allow Processing Time

It typically takes 7-10 business days for the Alabama Real Estate Commission to process applications. You can check your application status on the Commission’s website.

Once approved, your sponsoring broker will receive your license. You cannot conduct real estate transactions until properly licensed.

Mandatory Post-Licensing Education

An additional requirement after initial licensing is completing 30 hours of post-licensing education.⁵ These supplemental courses deepen your knowledge and capabilities related to practical real estate topics like practical applications, contracts, finance, risk management, and industry topics relevant to new agents.

Alabama gives agents 12 months to finish these 30 hours of training. However, to maintain an active license status, you must complete post-licensing within the first 6 months of getting your initial license.

The Alabama Real Estate Commission must approve all post-licensing providers. Costs range from $150 to $300 depending on whether you complete the hours online or in a classroom.

Knocking out post-licensing quickly ensures you can continue assisting clients under your broker without disruption.

It also builds knowledge to be a proficient beginner agent. Inactive licensees are also required to take the post-licensing education.

Post-licensing shows you are committed to strengthening your abilities and provides a smoother transition to practice. Some pre-licensing providers bundle post-licensing packages.

Alabama Real Estate Commission Association of Real Estate Agents

Getting licensed and practicing real estate in Alabama involves paying fees including:

AREC Licensing Fees:⁶

• $170 broker license application
• $39.50 fingerprinting
• Errors and omissions insurance varies
• $140 license renewal every 2 years
• Continuing education fees vary

Industry Organization Dues:

• Local board dues: approximately $350/year

Stay current on payments to maintain your active status. Factor them into your operating budget.

Newly licensed real estate salespersons and brokers also have the option of joining the Alabama Association of Realtors® (AAR).⁴ This is the state NAR association representing Alabama real estate professionals.

AAR is the largest professional trade association in Alabama, providing members with valuable services and resources including:

• Access to Multiple Listing Services (MLS) real estate databases
• Networking, education, and advocacy on legislative issues
• Professional designation courses for career advancement
• Discounts on E&O insurance, technology, office supplies
• REALTOR® trademark use and branding

To become an AAR member, applicants must:

• Hold an active Alabama real estate license
• Join and maintain membership in a local AAR association
• Complete new member orientation and ethics training
• Submit an application and pay applicable membership dues

Joining the state and local REALTOR® associations gives Alabama real estate agents access to insider industry resources, networking, and credibility with the recognized REALTOR® designation.

(Optional) Applying for the National Association of Realtors® (NAR): Steps and Tips

Alabama agents can further their membership benefits and networking reach by joining the National Association of Realtors® (NAR).⁷ This national organization has over 1.5 million members bound by a strict Code of Ethics.⁸

Here are some advantages of NAR membership:

• Expanded MLS access to listings nationwide
• Professional designations like GRI, CRS, and ABR
• Industry advocacy on the federal level
• National conferences and networking events
• Access to home buyer/seller resources
• Discounts on E&O insurance, technology, and more

To join NAR, licensed agents must first become members of their state and local REALTOR® associations. The process involves:

• Obtaining an active Alabama broker license. Before applying to NAR, you must hold an active license.
• Joining and maintaining membership in a local AAR association affiliated with NAR. Use NAR’s directory to find options.
  In Alabama, these include boards in Birmingham,⁹ Huntsville,¹⁰ Mobile,¹¹ and other areas.
• Meeting NAR’s membership criteria related to ethics, license validity, criminal history, and bylaws. Local associations may have additional requirements.
• Completing new member training like a Code of Ethics course within required timeframes.
• Paying applicable dues to your local association, state association, and NAR. NAR dues are around $150/year.
  Prorated dues of $75 apply for members joining between Jan-Sept.

The NAR membership application is submitted when joining your local association, which transmits it to NAR for processing.

While optional, NAR provides valuable training, advocacy, and marketing benefits to amplify your real estate career. NAR membership can also enhance your credibility and professional resources as a real estate agent.

Check with brokers during your interview process to see if they expect agents to join NAR.

How Long Does the AL Real Estate Application Process Take?

Many prospective Alabama real estate professionals wonder, “How long does it take to become an agent or broker?”

While timelines vary, the licensing process generally takes:

• 2 to 6+ months to complete pre-licensing education
• Up to 2 months to study for, schedule, and pass state exams
• 1 month to submit fingerprints and finalize application after passing exams
• 30 days for AREC to review and approve a completed license application

So expect around 4 to 8+ months total from starting pre-licensing education to having Alabama Realty Commission approve your real estate license application.

However, reciprocity applicants with current licenses from other states can often expedite the process to about 6-8 weeks by having education and exam requirements waived.

If you have your pre-licensing education completed, the exam scheduled, and a sponsoring broker lined up, you can likely finish the licensing process in about one month. Be sure to plan accordingly and account for state processing times.

You cannot legally work as a real estate agent until the Commission approves your license application.