How to Pass the Alabama Real Estate Exam on Your First Try

The Alabama real estate salesperson exam is administered by PSI on behalf of the Alabama Real Estate Commission (AREC). It consists of 140 questions — 100 national and 40 state-specific — and you must pass both sections independently. You have 4 hours total.

Alabama Exam Fast Facts - Questions: 140 (100 national + 40 state) - Passing score: 70% on each section (70 national, 28 state) - Time limit: 4 hours - Provider: PSI - Pre-license education: 60 hours - Governing body: Alabama Real Estate Commission (AREC)

The Alabama Real Estate Commission

AREC was established to protect the public in real estate transactions. It has 9 members — 7 licensees and 2 public members — each serving 5-year terms. The Commission enforces the Alabama License Law and Real Estate Consumers Agency and Disclosure Act (RECAD).

Key AREC facts tested on the exam: - Licensees must complete 15 hours of continuing education every 2 years - Licenses can be active, inactive, or terminated - A broker must have at least 3 years of active salesperson experience in the past 5 years before applying for a broker license

RECAD: Alabama's Agency Law

RECAD governs agency relationships in Alabama. Key points:

• Dual agency is permitted with written consent from all parties
• A single agent represents one party exclusively (buyer or seller)
• Transaction broker — also called a limited consensual dual agent in Alabama — assists both parties without representing either in a fiduciary capacity
• Written agency agreements are required before providing substantive services
• The Agency Disclosure form must be given to customers at first substantive contact

Exam tip: Alabama tests the distinction between "customer" (no agency) and "client" (agency relationship). A customer receives honest, fair dealing. A client receives fiduciary duties.

Trust Accounts and Property Management

Alabama has strict rules on trust/escrow account handling: - Brokers must maintain a separate trust account for clients' funds - Funds must be deposited within a "reasonable time" (generally 3 business days) - Trust account records must be kept for 3 years - Commingling (mixing personal and client funds) is prohibited and grounds for license revocation

Topics That Catch Candidates Off Guard

License reciprocity: Alabama has reciprocal agreements with many states. If you're licensed in a reciprocal state and move to Alabama, you may qualify for a streamlined process — but you must still pass the Alabama state section.

The 10-day free-look: Alabama residential purchase contracts include specific contingency periods. Know the difference between inspection contingencies and financing contingencies.

AREC's disciplinary process: Understand the complaint → investigation → hearing → sanction chain. The Commission can suspend, revoke, censure, or fine licensees.

Post-license education: New salespersons in Alabama must complete 30 hours of post-license education within the first license term (6 months after licensure).

Your 4-Week Alabama Study Plan

Week 1: National content — agency law, contracts, property ownership, land use Week 2: National content — financing, valuation, math, fair housing Week 3: Alabama-specific — AREC structure, RECAD, trust accounts, license law Week 4: Full practice exams. Target 75%+ on both sections. Drill state law heavily.

The state section (40 questions) is where most candidates underperform. RECAD, AREC membership and powers, and trust account rules are high-frequency topics. Get those locked down.

Practice for the Alabama Exam

[CARealestate.com/states/alabama](https://carealestate.com/states/alabama) has Alabama-specific practice questions covering AREC rules, RECAD, trust accounts, and license law. 5 free questions, no signup needed.

Alabama's 70% threshold on both sections means you can't ignore either. But with 40 state questions, a strong focus on Alabama-specific law in weeks 3 and 4 is your highest-leverage prep.