Frequently Asked Questions

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. However, such a licensee must abide by all of the other provisions of the license law and Rules of the Commission even in dealing in their own property. Secondly, when RECAD was passed, in one of the provisions of the obligations of licensees, Section 34-27-84 (a)(6) we find that in order to act on behalf of the licensee or his or her immediate family, or on behalf of any other individual organization, or business in which the licensee has a personal interest, you must have given prior timely written disclosure of this interest to all parties in the transaction. (A mere disclosure that you hold a license is not sufficient.)

What if I am on inactive status, do I still have to comply?

The above section of the law and the cited rule only says "licensee" and does not differentiate between active and inactive, it just says "licensee." Therefore, it follows that a licensee of the Alabama Real Estate Commission is a licensee, just as a doctor is a doctor at all times.

My company has set up a separate referral company and I am considered inactive. I do not actively list or show property. Therefore, I am considered inactive with the local Board or Association of Realtors. What is my license status with the Commission?

Under the set of circumstances above, you still hold an active real estate license as far as the Commission is concerned. You have the legal right to do any act that the license law and rules cover, however you have agreed with your qualifying broker to not actively list and show real estate.

Must I have an active real estate license to rent and lease apartments?

No. Several years ago, the Alabama Legislature took persons acting as manager for an apartment building or complex out from under any requirement to be licensed and removed the restriction that a resident manager must live on the premises. (Section 34-27-2 (b)(7) of the license law.) However, if a licensed real estate company decides to manage the apartments, the Commission will expect compliance with the law and rules to include depositing the security deposits in a trust account and running the rent and repairs through a trust account.

My broker refuses to pay me the commission I have earned. How do I file a complaint with the Alabama Real Estate Commission?

The Alabama Real Estate Commission has no jurisdiction to order any broker to pay a commission. Your agreement or contract with the company is all you have to collect your commission. You will have to take them to the proper state court.

I want to transfer my license and my broker refuses to return my license to the Commission. He claims I owe the company money and I dispute that. What do I do?

The old broker cannot stop you from transferring to another company or going on inactive status. Section 34-27-34 (3)(b) indicates that 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 a registration form assuming liability for the licensee and on payment of $25, a new license will be issued. The Commission will then get the old license from the qualifying broker through Rule 790-X-2-.21 (2) which states that the qualifying broker is responsible for the immediate return of any license certificate which is in need of any change.

I have given up my real estate license and moved out of state but a transaction I worked on is about to close. Can my former qualifying broker still pay me my commission?

The answer is, yes. The acts that required you to be actively licensed (listing, showing, negotiating) were done while you held an active license. Therefore, you still can be paid.

I have a criminal record. I think that the offense was a misdemeanor, but it might even be a felony. Am I eligible to obtain a real estate license?

In Section 34-27-32 of the Alabama Real Estate License Law, the statement is made, "The Commission may reject the application of any person who has been convicted of or pleaded guilty or nolo contendere to a felony or a crime involving moral turpitude." The key word is "may." Just about every month someone with a criminal record asks the Commission for permission to be licensed. Some just write a letter and some actually have a hearing before the Commissioners, but in both instances the Commissioners make a decision on whether or not to allow them to be licensed. They must determine, in their judgment, if the person would be trustworthy and competent to transact the business of a broker or salesperson in a manner that safeguards the interest of the public. (Section 34-27-32 (a)(1). By the way, the question is not only was there a felony involved, a misdemeanor of a type that would be considered by the courts as "moral turpitude" "may" exclude you from eligibility. Such things as shoplifting and issuing worthless checks are misdemeanors but are also considered offenses of moral turpitude.

I don't have an Alabama real estate license, but I am licensed in another state. What must I do to participate in selling Alabama real property?

Section 34-27-3 indicates that you may co-broke with an Alabama licensee by executing a written co-broker agreement with an Alabama broker on each piece of property. This agreement is filed with the Alabama Real Estate Commission. By signing such an agreement you agree to abide by Alabama law and you agree that civil actions may be commended against you in Alabama if the need should arise. Alternately, you may choose to obtain an Alabama real estate license by reciprocity if you are going to frequently deal in real property situated in Alabama.

COMPANY AUDIT

I am expecting a refund. What is taking so long?

It is the policy of the Commission to wait 15 days after the check is processed before issuing a refund. Once the process starts, it could take up to three weeks to receive the check from the state Comptroller.

I received a letter that I am going to be audited. Why do I need an audit? I am a one-person office and do not do any business. I just like to keep my license active.

Any active company and QB license are subject to an audit. It does not matter if you do a lot/any business.

I am a new company and want to make sure I am doing everything correctly. Can I request a technical assistance visit from the Commission to make sure I am doing things right?

Yes. If you have a new company that has been operating less than a year, you may email or call the Commission to request an Assistance Visit or Assistance Desk Audit. An auditor will answer questions or assist in making sure the company is operating correctly.

LICENSING

Temporary to Original Salesperson License

I had an active temporary salesperson’s license and the Commission placed it on inactive status. I completed the 30-hour post license course so why did my temporary license go inactive?

The temporary license can only be active for the first 6 months after issuance. In order to remain on active status, you must complete the 30-hour post license course and have your original (permanent) salesperson’s license issued. You can have your original salesperson’s license issued by logging in to the “Online Services Login” from the Commission’s website, selecting “salesperson’s original license” and following the instructions to have the license issued. Or you can complete and print the Salesperson’s Original Application from the Commission’s website under “Forms” and mail it to the Commission office with the fee.

I received a notice that my temporary salesperson’s license lapsed and is no longer valid. I completed the 30-hour post license course and intended on maintaining an inactive license; why did it lapse?

A temporary license is good for only one year, you must do TWO things before your one-year deadline to obtain an original (permanent) salesperson’s license. (1) complete the 30-hour post license course AND (2) submit the original (permanent) salesperson’s application and fee. You can have your original salesperson’s license issued by logging in to the “Online Services Login” from the Commission’s website, selecting “salesperson’s original license” and following the instructions to have the license issued, OR you can complete and print the “Salesperson’s Original Application” from the Commission’s website under “Forms” and mail it to the Commission office with the fee.

Evidence of Licensure

I need a copy of my real estate license. Will it be mailed to me or can I print it from the Commission’s website?

Since a licensee must be supervised by a qualifying broker, the license is only issued to the qualifying broker, it will not be mailed to salespersons or associate brokers or available for them to print from the Commission’s website. Only the qualifying broker has access to print the license online. Qualifying brokers who do not access licenses online, may choose to have the license mailed to them at the company address.

Is a certification of licensure the same as a copy of my license?

No. A certification of licensure is a document prepared by the Commission that validates your licensure in Alabama. It verifies whether you received your license through reciprocity or by examination and lists disciplinary action history. Certification is usually requested by another state real estate licensing board or commission or a person or organization wanting to validate your licensure in Alabama. It can be downloaded from the Commission’s website or requested by mail.

I mailed my application to the Commission, but I did not include my fee. Can I call the Commission office and pay over the phone with my credit card?

To protect your financial information, the Commission does not accept credit or debit card payments by phone. Transactions that require you to mail a form and fee must be paid by check or money order. Only transactions that can be done online, in a protected environment, can be paid by credit and debit card.

Payment Questions

Does the Commission accept starter checks or new account checks?

The Commission does not recommend you submit starter checks to the Commission office with your forms. In most cases these checks do not contain all the necessary information, such as the account holder’s name, address and check number, that the Commission needs to ensure the funds are accounted for appropriately.

Changing License Status

I have retired from selling real estate and no longer list or sell property; however, I would like to make referrals to other licensees for a fee. Can I place my license on “referral or retired” status with the Commission?

There is no referral or retired status recognized by the Commission. If you maintain a current license it can only be placed on active or inactive status. If you wish to make referrals to other licensees for a fee then you must maintain an active real estate license, meaning it must be registered under an active qualifying broker and company license, and you must complete 15 hours of continuing education (CE) in order to maintain an active license during each licensing period.

I transferred my license online to the wrong company by mistake. Can the Commission stop this transaction or transfer me to the correct company and broker?

No, the Commission cannot stop a transfer or activation request completed online or transfer your license to another company and broker if you input the wrong information. When transferring or activating your license online, the system will confirm the company information and qualifying broker’s name; therefore, you are given the opportunity to review it carefully before completing the transfer or activation request. If you go to the wrong company, you will be responsible for paying another $25 transfer fee to correct your mistake.

How do I inactivate my real estate license?

First, notify your qualifying broker, in writing, of your intent to place your license inactive. Then you can inactivate your license by going to the Commission’s website "Online Services Login” and selecting “transfer/inactivate” from the menu of options.

I am a qualifying broker and I wish to inactivate a licensee registered under me. How do I inactivate a licensee?

First, notify the licensee, in writing, that you will be inactivating his/her license. You can then easily inactivate a licensee by going to the Commission’s website, clicking on “Online Services Login” and selecting “inactivate licensee” from the menu and following the instructions from there. If you choose to inactivate a licensee by mail, complete the “Registration/Transfer Form” with the licensee you are inactivating. Mail this form to the Commission along with his/her license.

Username and Password

I am assisting my husband with updating his licensing information online; however, he does not remember his login credentials. Can I contact the Commission on his behalf for assistance with his username and password?

No, the Commission considers this private information; the licensee must contact the Commission office directly for assistance. However, we recommend that licensees reset their own passwords by using our online password reset feature.

Inactive License Renewal

Do I have to renew my license if it is on inactive status?

Yes, you must renew your license every two years just like anyone else. Far too many people think that since the Commission is "warehousing" their license they do not have to do anything. They fail to notify the Commission of their new residence addresses and let their license lapse. Later they decide to get back into real estate and think they can "reactivate" but they have no license to activate. It is similar to your driver's license. If you choose not to drive for a while and do not renew your license, you get to take the driver's license exams and start over.

EDUCATION

Salesperson and Broker Applicants

What course do I have to take before getting a real estate license?

A 60-hour salesperson prelicense course must be completed through a licensed school before a salesperson applicant can schedule the licensing examination. Also, a 60-hour broker prelicense course must be completed through a licensed school before a broker applicant can schedule the licensing examination. If you currently hold a real estate license in another state, you may qualify to take the appropriate 6-hour reciprocal prelicense course.

I heard that if you have a college degree, you do not have to take the salesperson prelicense course and you can just sit for the license examination and get your license. Is this true?

Some colleges offer real estate courses as a part of a degree-based curriculum. If you are enrolled in a college or university that has an approved curriculum with the Commission, you may qualify to take the license examination based on accredited college/university real estate courses. Always check with the Commission to verify and confirm that the college or university you attend is approved.

How long do I have to complete the salesperson prelicense course once I start it?

The 60 hour salesperson prelicense course must be completed within one year from the date you start it. Course completion includes a proctored final examination, signed affidavits, and any other completion steps required by the course provider. If all course requirements are not completed within one year, the entire prelicense course must be retaken to receive credit. Course credit cannot be accepted if all course requirements have not been completed within one year.

How long do I have to take the prelicense course exam before I can go take my license exam?

The final course exam is a part of the prelicense course. All requirements of the salesperson prelicense course must be completed within one year from the start date.

How long does it take to finish the online salesperson prelicense course?

You may take the online course at your own pace. Just keep in mind that the course must be completed within one year from the start date of the course. Course completion includes signed affidavits, proctored exams, and any other completion steps required by the course provider.

Are attorneys and CPAs exempt from taking the salesperson prelicense course?

Attorneys and CPAs are NOT exempt from the prelicense course or license examination.

Who can answer my questions about things I do not understand in preparing for the license examination?

The instructor who taught your salesperson prelicense course should explain information and answer questions to help in preparation for the license examination. If the course was taken online, there will be an instructor of record that you may contact with questions.

How do I schedule the license examination after completing my salesperson prelicense course?

The examination is administered by Pearson VUE and can be scheduled by calling 888-926-9488 or visiting home.pearsonvue.com/al/realestate.

Where can I take the salesperson license examination?

To find license examination locations and schedule the license examination, please visit Pearson VUE at home.pearsonvue.com/al/realestate or call 888-926-9488.

How many times can I take the license examination?

There is no limitation to the number of times that you may take the license examination within the six (6) months following completion of the prelicense course.

How often is the license examination administered?

Contact Pearson VUE by calling 888-926-9488 or visiting home.pearsonvue.com/al/realestate for more details.

How long do I have to pass the license examination once I complete my salesperson prelicense course?

The state license examination must be passed within six (6) months from the date you complete the appropriate prelicense course.

How do I apply for an original/permanent salesperson’s license?

After completing the 30 hour post license course, you must submit the Application for Real Estate Salesperson’s Original License. This application is available online by logging in to Online Services.

How do I obtain a Commercial Real Estate License?

A real estate salesperson or broker license will allow you to represent individuals in residential, commercial, and property management transactions.

Do you issue licenses for Appraisers and Home Inspectors?

The Commission does not issue licenses for appraisers or home inspectors. There are other regulatory agencies in Alabama for those disciplines.

Instructors, Courses, and Schools

How can I become an instructor?

In order to become an approved real estate instructor, the proper application must be submitted to the Commission. These applications are located under the “Professionals” menu on the Commission’s website. Instructions, qualifications, fees, and required documentation are identified on the applications.

Where do I go to get training to teach a CE, Prelicense, or Post License course?

Instructor applicants who only want to teach CE courses must have expertise in the area of study in which they wish to teach before submission of the instructor application. For example, to teach a CE course on foreclosures, the application must document expertise or training in that area. Prelicense and Post License instructor applicants must submit the proper instructor application and also attend a New Instructor Orientation prior to approval. These instructor applications are located under the “Professionals” menu on the Commission’s website.

I just became a Prelicense/Post License instructor. When will I need to get the 12 hours of instructor training for renewal?

Prelicense/Post License instructors must have 12 hours of instructor CE in order to renew instructor approval. These hours must be in an instructor’s record by September 30 of every odd year in order for the instructor to renew on active status. These instructor CE hours are not interchangeable with CE hours required to renew a broker’s license. If an instructor is approved in the second year of an education approval period, he/she is exempt from the instructor CE requirement for the first renewal.

How do I register to take my instructor CE to renew my instructor approval?

Auburn University’s Office of Professional and Continuing Education (OPCE) sponsors the Commission’s instructor trainings and processes all registrations. The website to register for instructor training is www.auburn.edu/outreach/opce/re/. These hours may also be obtained through other sources, but you must contact the Education Division for approval prior to taking the course.

I am an instructor in another state, and I want to offer CE courses in Alabama. What do I need to do?

All instructors who teach CE courses in Alabama must be approved by the Commission, even if they are approved by another state. The instructor must also submit a course application for approval and be sponsored by an approved or licensed school.

I work in another field and want to offer a CE course to real estate licensees. What is the process?

All CE instructors must meet the qualifications identified in Alabama license law and the “Real Estate Continuing Education Instructor Application.” There are four options from which to choose including education degree, teaching experience, experience in the field of instruction, and a combination of experience and college level education. Please refer to the instructor application under the “Professionals” menu on the Commission’s website for more details.

Do I have to keep my broker’s license active to remain a Prelicense/Post License instructor?

Alabama license law states instructor applicants of prelicense and post license courses must hold and maintain a current broker’s license. A current license can be active or inactive.

How long does it take to get a CE course approved?

Courses are submitted electronically for approval and usually do not take more than one week to receive final approval. This depends on the number of courses submitted and the availability of the individual approving courses.

I have entered a course in CMap but I do not have enough students registered for it to be offered. Do I need to contact the Commission to cancel the class?

The Commission does not have to be contacted when a course is canceled. However, the course must have been entered into CMap’s Manage Course Schedules at least one week prior to the beginning of the course. If the course does not have enough students to justify offering it, the school administrator or the course instructor must remove the course from CMap as soon as possible so it will not appear in the Course Search on the Commission’s website. If it is canceled the same day it was scheduled to be offered, the Commission should be notified.

I want to make some changes to one of my approved courses. Do I need to submit the course for approval and pay the application fee again?

If the content of an approved CE course is significantly altered from the original content outline submitted for approval, the course must be submitted again for approval. If the content of the course is not significantly altered from the original outline, the instructor may continue offering the course and submit the revised outline to the Education Division and officially update it when the course is renewed.

I hear that distance education courses must be ARELLO certified. Who is ARELLO and what does the certification mean?

ARELLO is the Association of Real Estate License Law Officials. ARELLO certifies online real estate courses to guarantee the design and delivery of the course meets the high standards desired by real estate regulatory agencies. The Commission reviews the content of online courses and depends on ARELLO certification to verify quality design and delivery.

How long does my CDEI certification last and what will I need to do to keep my certification?

ARELLO’s CDEI certification (Certified Distance Education Instructor) is required for Alabama instructors who wish to teach online (distance education) courses. This certification is valid for a period of three years from the date it was issued. The certification must be renewed at the end of that period by completing additional coursework.

Where do I purchase License Law books?

License Law books are no longer available for purchase. The complete Alabama License Law is available on our website, arec.alabama.gov, under the Laws section. In addition to the website, we have a license law app that can be downloaded to mobile devices. Go to the app store for your Apple or Android device and search "Alabama Real Estate Commission".

How do I open a real estate school?

A real estate school can be opened by submitting the appropriate application. The instructions for completing the School Application can be found under the “Professionals” menu on the Commission’s website and the application must be submitted electronically for school approval. Also, an administrator for the school who is responsible for all actions of the school must be approved by submitting an Administrator Application which can also be found on the Commission’s website.

Continuing Education

Does my location matter when I take an online course?

No, but all online (distance education) courses used for Alabama CE credit must be taken from Alabama-approved online providers.

Can I receive credit for a classroom course I took while in another state?

The Commission requires specific documentation prior to awarding CE credit for courses taken in another state. Verification of the approval of the course by any Real Estate Commission must be provided with the number of hours for which it is approved. Documentation of 100% attendance must also be provided. Documentation must show your name, the name of the course, the number of hours for which it is approved, and the Real Estate Commission that approved it. It is possible for the Commission to deny credit for courses taken in another state.

Does the 60 hour Broker Prelicense course count as CE for license renewal?

Yes, the 60-hour Broker Prelicense course provides all 15 hours of CE required for the next license period.

When is the next license period?

License periods begin October 1 of every even year and end September 30 of the next even year (i.e. October 1, 2020 through September 30, 2022).

I have 15 hours of CE and my renewal fee was paid on time. Why did my license go inactive on October 1 of the new license period?

Although you completed 15 hours of CE and paid the license renewal fee, it is possible that you may not have satisfied the CE requirement for license renewal. Salespersons must complete a mandatory 3-hour Risk Management course and 12 hours of approved elective CE courses of your choice. Associate Brokers and Qualifying Brokers must complete the 3-hour Risk Management course, the 3-hour Mandatory Broker CE course, and 9 hours of approved elective CE courses of your choice. If in doubt about approved courses and schools, please contact the Education Division.

My CE was displayed on the Commission’s website, but now I cannot find it.

All CE is archived once it is used for renewal of an active license. If an inactive license is renewed, the courses will archive upon the first activation of the license. CE courses that have been archived after being used for previous license renewals can be accessed by selecting the proper link. If you have a specific need, please contact the Education Division for further assistance.

I completed a CE course last month and my CE credit is still not showing when I log in to the website. Does the Commission have a record of that course and why is it not appearing in my CE record?

If your courses are not showing after you log in to Online Services on the Commission’s website, that means the Commission does not have your CE credit on record. Contact the school where you completed the course(s) to report missing CE course credit.

Do I need CE for the next renewal period if I just received my temporary license last month?

The 30 hour Post License course must be completed within 12 months of receiving your temporary license. When completed, the post license course will provide the 15 hours of CE required for the first renewal of your original salesperson license.

How much CE is needed to renew and when is it due?

15 hours of CE approved by the Commission are required by September 30 of every even year in order to renew your license. All licensees must take the three-hour mandatory Risk Management course. In addition to Risk Management, all associate and qualifying brokers must take the three-hour Mandatory Broker CE course. All remaining hours can be approved courses of your choosing.

Can I take CE now even though this is not the renewal year?

CE can be taken any time during a license period for the next license renewal. All licensees are encouraged to take CE courses early in the license period to avoid the rush during the last few months. CE credit can always be checked by logging in to Online Services on the Commission’s website.

Is there an age exemption for the CE requirement?

Alabama License Law identifies individuals who are not required to take CE for license renewal. Section 34-27-35 states “any licensee reaching the age of 65 on or before September 30, 2000, and having been licensed 10 years prior to that date shall be exempt from this section.” Therefore, anyone who turned 65 after September 30, 2000 must take CE for license renewal.

If I take more than 15 hours of CE during this license period, will the excess hours carry over to the next license period?

CE hours will not be carried over to the next license period. If a licensee has 21 hours of CE taken in a given license period, all 21 hours will be archived upon license renewal.

Is Code of Ethics a required course for license renewal?

You are not required to take Code of Ethics in order to renew your salesperson or broker license. REALTOR® associations require this course as part of their membership requirement.

Is Code of Ethics included in the Commission’s Post License and Broker Prelicense courses?

Prelicense and Post License courses are not written to include the Code of Ethics. Your state or local board/association of REALTORS® will let you know how to meet the Code of Ethics requirement for REALTORS®.

My qualifying broker told me that I do not need CE for the next license period because I just got my license last month. Is this true?

The 30 Hour Post License course that you completed in order to receive your Original Salesperson License meets the requirement of 15 hours of CE for the first renewal of your salesperson’s license. If you have a question about whether or not this applies to you, please contact the Education Division.

My license has lapsed. What courses do I need to take to get my license back?

A lapsed license cannot be reactivated. You will have to take the same courses and go through the same steps as someone who has never been licensed. Alabama’s 60 hour salesperson prelicense course must be completed, the state license examination must be taken and passed, and an “Application for Real Estate Salesperson’s Temporary License” must be submitted.

I hold an Alabama reciprocal license. Do I have to satisfy the same CE requirement as everyone else?

If your license in another state is active, you will only have to submit a certification of licensure from your state of original licensure between June and September of every even year.

I hold an Alabama reciprocal license and I was told that my license is inactive, but I have paid my renewal fee and you have my CE documentation. Why is my license still inactive?

If renewal documentation or fees are received after a new license period begins (October 1 of an even year), then a license is automatically placed on inactive status and an activation fee must be paid to reactivate the license.

CONSUMERS

What services can a real estate professional provide?

Real estate licensees are required to present a Brokerage Services Disclosure Form which describes the alternative types of brokerage services available to consumers in Alabama transactions. The Real Estate Brokerage Services Disclosure form must be provided to consumers for them to sign as soon as reasonably possible. Signing this form does not obligate you in any way to the licensee, your signature is proof that you were given information the Alabama Real Estate Commission developed and requires licensees to provide so that you can be informed and choose the type of brokerage services best suited to your needs. The Alabama Real Estate Commission urges you to take the time to read and understand the disclosure form.

How can I find out if a real estate professional is licensed in Alabama or other jurisdictions?

It is important to know that an individual who holds herself/himself out to have a real estate license does, indeed, have a current real estate license. You can search the Alabama Real Estate Commission’s Database for licenses issued in Alabama. This database will allow you to search by first name, last name, company name and or license number, so if you do not know an individual’s company name or license number, enter what you do know and a list of possibilities will show. From this list you can determine what type of license was issued and when it will expire.