Alabama Real Estate Practice Exam
(Free Questions & Answers)
The Alabama real estate exam is administered by the Alabama Real Estate Commission (AREC) and focuses heavily on AREC's specific broker supervision requirements, trust account rules, and the two-year license renewal cycle with mandatory continuing education. Alabama is a common-law property state, and the state portion tests the difference between joint tenancy and tenancy in common extensively. Candidates often struggle with Alabama's specific timeframes for turning over earnest money to a broker and the rules around license reinstatement after lapse.
Administered by: Alabama Real Estate Commission (AREC) · 120 questions · Passing score: 70%
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Updated May 2026 · Alabama Real Estate Commission (AREC) exam outline
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Free Alabama Real Estate Practice Exam Questions
Test your knowledge with these Alabama real estate practice questions. Each question is based on topics from the Alabama Real Estate Commission (AREC) exam and includes detailed explanations.
Q1. Which state agency regulates real estate licenses in Alabama?
Explanation
The Alabama Real Estate Commission (AREC) is the state agency responsible for licensing and regulating real estate brokers and salespersons in Alabama.
Q2. In Alabama, which form must be provided to consumers at the first substantive contact with a real estate licensee?
Explanation
Alabama law requires licensees to provide the 'Understanding Whom Real Estate Agents Represent' disclosure form to consumers at the first substantive contact. This form explains the types of agency relationships available.
Q3. Under Alabama law, contracts for the purchase of real estate must be in writing to be enforceable. This rule is known as the:
Explanation
The Statute of Frauds requires that contracts for the sale of real property must be in writing and signed by the party to be charged in order to be enforceable in Alabama.
Q4. In Alabama, which form of co-ownership includes the right of survivorship?
Explanation
Joint tenancy includes the right of survivorship, meaning when one joint tenant dies, their interest automatically passes to the surviving joint tenants. Alabama recognizes joint tenancy with right of survivorship.
Q5. In Alabama, what instrument is primarily used to secure a mortgage loan with real property as collateral?
Explanation
Alabama is a mortgage state (lien theory state). A mortgage is the primary instrument used to pledge real property as collateral for a loan. The borrower retains title while the lender holds a lien.
Q6. In Alabama, property is assessed for tax purposes at what percentage of fair market value for residential property?
Explanation
Residential property in Alabama is assessed at 10% of fair market value for property tax purposes. Commercial property is assessed at 20%, and agricultural property at 10%.
Q7. Alabama's fair housing laws prohibit discrimination based on which federal protected classes plus additional state protections?
Explanation
Alabama follows the federal Fair Housing Act's seven protected classes: race, color, national origin, religion, sex, familial status, and disability. Alabama does not have a broader state fair housing law that adds protected classes beyond the federal standard.
Q8. In Alabama, which party typically selects the closing attorney?
Explanation
In Alabama, it is customary for the buyer to select the closing attorney. The closing attorney represents the interests of the lender (if applicable) and facilitates the closing process.
Q9. A property in Alabama sells for $240,000. The total commission is 6%. How much does the listing broker receive if the commission is split equally with the buyer's broker?
Explanation
Total commission: $240,000 × 0.06 = $14,400. Split equally: $14,400 ÷ 2 = $7,200 for each broker. To solve this, multiply the relevant values: $240,000 at 6%.. The correct answer is $7,200.. This is a common calculation on the Alabama real estate exam.
Q10. In Alabama, the power of local governments to regulate land use through zoning is derived from:
Explanation
Zoning is an exercise of the government's police power — the authority to regulate private conduct to protect public health, safety, and welfare. States delegate this power to local governments through enabling legislation.
Q11. Which federal law requires sellers to disclose known lead-based paint hazards in homes built before 1978 in Alabama?
Explanation
The Residential Lead-Based Paint Hazard Reduction Act (Title X) requires sellers and landlords of pre-1978 housing to disclose known lead-based paint hazards and provide buyers with an EPA pamphlet about lead. This applies in Alabama and all states.
Q12. Under Alabama landlord-tenant law, a landlord must return a security deposit within how many days after the tenant vacates?
Explanation
Alabama law requires landlords to return the security deposit — or provide a written itemized list of deductions — within 60 days after the tenant vacates the property.
Q13. In Alabama, a qualifying broker's trust account must be reconciled:
Explanation
Alabama regulations require that trust accounts be reconciled monthly. The broker must compare the trust account balance against the records of individual client funds held.
Q14. How many hours of pre-license education are required to sit for the Alabama real estate salesperson exam?
Explanation
Alabama requires 60 hours of pre-license education before a candidate may sit for the salesperson licensing exam.
Q15. Under Alabama agency law, a 'limited consensual dual agent' may represent:
Explanation
Alabama permits limited consensual dual agency, where one broker represents both the buyer and seller in the same transaction, provided both parties give written informed consent. The agent cannot share confidential information from either party.
Q16. In Alabama, a listing agreement is a contract between:
Explanation
A listing agreement is an employment contract between the seller (principal) and the real estate broker (agent). It authorizes the broker to find a buyer and specifies compensation.
Q17. Alabama is NOT a community property state. This means property acquired during marriage is typically owned as:
Explanation
Alabama follows common law property rules, not community property. Property acquired during marriage belongs to the spouse who earned or purchased it, unless title is held jointly.
Q18. Alabama's usury laws regulate:
Explanation
Alabama usury laws set limits on the maximum interest rates that lenders may charge on loans. Charging interest above the legal maximum is illegal and can result in penalties for the lender.
Q19. When using the sales comparison approach to value a property in Alabama, the appraiser:
Explanation
The sales comparison approach compares the subject property to recent sales of similar (comparable) properties, adjusting for differences. It is the most common approach for residential property valuation.
Q20. Steering — directing buyers toward or away from neighborhoods based on protected class characteristics — is:
Explanation
Steering is illegal under the federal Fair Housing Act and is prohibited in Alabama. Steering based on race, religion, national origin, sex, disability, familial status, or color violates fair housing laws regardless of whether the buyer requests it.
Q21. Which type of title insurance policy protects the lender in an Alabama real estate transaction?
Explanation
A lender's policy (mortgagee policy) protects the lender's interest in the property up to the loan amount. A separate owner's policy protects the buyer's equity interest.
Q22. Alabama property has an assessed value of $18,000 (at 10% of market value). The tax rate is 50 mills. What is the annual property tax?
Explanation
1 mill = $1 per $1,000 of assessed value. Tax = $18,000 × (50/1,000) = $18,000 × 0.05 = $900 per year.
Q23. A property owner in Alabama wants to use their residentially-zoned property for a small home-based business. They would apply for a:
Explanation
A special use permit (conditional use permit) allows a property to be used for a purpose that is permitted in a zone only under specific conditions. Home-based businesses in residential zones typically require this permit.
Q24. CERCLA (Superfund) affects Alabama real estate by:
Explanation
CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act) can hold current property owners liable for hazardous waste cleanup costs even if contamination occurred before they owned the property. This is critical due diligence knowledge for Alabama real estate agents.
Q25. Under the Alabama Uniform Residential Landlord and Tenant Act, a landlord must give how many days' notice before entering a tenant's unit for non-emergency repairs?
Explanation
Alabama law requires landlords to give at least 2 days (48 hours) advance notice before entering a tenant's dwelling unit for non-emergency repairs or inspections, and entry must be at reasonable times.
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Alabama Real Estate Exam — What to Expect
What Is On The Alabama Real Estate Exam?
The Alabama real estate salesperson exam is administered by the Alabama Real Estate Commission (AREC) and tests both national real estate principles and Alabama-specific laws and regulations. The exam contains 120 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Alabama — including regulations set by the Alabama Real Estate Commission (AREC), Alabama agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Alabama exam include: Property Ownership, Agency Law, Contracts, Finance, Alabama License Law. Candidates who struggle on the AL exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Alabama law questions require targeted preparation.
Official Alabama Exam Content Areas
Source: Alabama Real Estate Commission (AREC) · Updated June 2026
| Content Area | Questions |
|---|---|
| Property Ownership | 6 |
| Land Use Controls and Regulations | 4 |
| Valuation and Market Analysis | 6 |
| Financing | 8 |
| General Principles of Agency | 10 |
| Property Disclosures | 5 |
| Contracts | 14 |
| Leasing and Property Management | 2 |
| Transfer of Title | 6 |
| Practices of Real Estate | 11 |
| Real Estate Calculations | 8 |
| Alabama State Section (license law, license status, broker/company licenses, AREC regulations) | 40 scored |
- ▸Administered by Pearson VUE; national and state sections scored independently — both must be passed
- ▸Passing score is a scaled 70 (on a 0–100 scale) for both sections — not a raw percentage
- ▸National section question counts are from the official Pearson VUE content outline (pub. #099913, effective August 2024)
- ▸Alabama state section covers AREC purpose and regulations, licensing requirements, license status categories, and broker/company license rules
- ▸Source: Pearson VUE Alabama Candidate Handbook (August 2024, pub. #093300) and AREC (arec.alabama.gov)
Practice Alabama questions by topic — start with Alabama License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The Alabama Exam?
The Alabama real estate salesperson exam has 120 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Alabama-specific laws administered by the Alabama Real Estate Commission (AREC). You have 4 hours to complete the exam.
Alabama Real Estate Exam Passing Score
You need a 70% to pass the Alabama real estate exam. The first-time pass rate in Alabama is approximately 57%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the AL-specific portion. Our Alabama practice exam is built specifically around the Alabama Real Estate Commission (AREC) exam outline.
Read our complete Alabama exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The Alabama Exam
These are the areas where Alabama candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
Alabama Real Estate Commission rules on broker supervision timelines, trust account procedures, and continuing education are frequently tested. The 2-year renewal cycle requirements catch many candidates off guard.
Alabama's specific agency disclosure requirements — particularly the timing of when disclosure must be made and what form it must take — differ from national norms and are tested heavily.
Alabama has strict rules on how quickly earnest money must be turned over to the broker and how trust accounts must be maintained. Candidates frequently confuse Alabama's timeframes with general national rules.
Alabama's rules around lapsed and expired licenses, reinstatement procedures, and the consequences of practicing on an expired license are tested areas where candidates lose points.
Alabama Real Estate Math
The Alabama real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the AL exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your Alabama Real Estate License
- 1Complete 60 hours of state-approved pre-license education covering topics required by the Alabama Real Estate Commission (AREC).
- 2Submit your application to the Alabama Real Estate Commission (AREC) and pay the required fees (exam fee: $85).
- 3Pass the Alabama real estate salesperson exam (120 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by Alabama law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Alabama Real Estate Commission (AREC).
Best Study Strategy For The Alabama Exam
Start with Alabama license law first. State-specific regulations administered by the Alabama Real Estate Commission (AREC) make up a significant portion of the AL exam and are not covered in most national study materials.
Master the math early. The Alabama real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Alabama exam has 120 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the AL exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Alabama law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Alabama may have additional protected classes. Know both federal and Alabama-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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