Exam Cheat Sheet · Quick Reference
Alabama Real Estate Broker State Portion
Alabama · Pearson Vue
Alabama State Portion 40 questions
Key Distinctions
An active license allows a licensee to practice real estate, while an inactive license is held by the commission office by law, order of the commission, at the licensee's request, or due to failure to renew, and is not currently valid.
Alabama Real Estate License Laws & Rules Title 34 – Chapter 27, Section 34-27-2(a)(7)A temporary license is issued after passing the exam and is not subject to renewal; the original license is issued only after completing the 30-hour post-license course within six months (or lapses to inactive after six months, expires after one year).
Alabama Real Estate License Laws, Section 34-27-33(c)(2)The qualifying broker is held responsible to the commission and the public for all acts governed by license law of each salesperson and associate broker licensed under them, whereas associate brokers and salespersons act under that supervision.
Alabama Real Estate License Laws & Rules Title 34, Section 34-27-34(a)(2)In the Alabama agency disclosure clause, the listing company represents the seller while the selling company may be identified as an agent of the buyer, agent of both parties (limited consensual dual agent), or transaction broker; each role must be separately disclosed.
Alabama Real Estate License Laws & Rules Title 34, Section 34-27-8(c) — transaction broker optionA limited consensual dual agent represents both seller and buyer with written consent of all parties, while a transaction broker assists a party without fully representing them.
Alabama Real Estate License Laws & Rules Title 34, Section 34-27-36(a)(7)The RECAD form is created by the Alabama Real Estate Commission and provided to consumers before any confidential information is disclosed, while the ADOP is created and maintained by the qualifying broker and sets out the types of brokerage services the company may offer.
Section 34-27-82(c) and 790-X-3-.13(2)Both complete 15 clock hours per license period, but salespersons must include 3 hours of Risk Management plus 12 elective hours, while associate brokers and qualifying brokers (effective October 1, 2022) must include 3 hours of the Commission-approved Broker course.
Alabama Chapter 790, Rule 790-X-1-.11(1)The Alabama qualifying broker must require a listing or joint listing of the property, must have their name appear in all advertising, and is liable for all acts of the out-of-state broker; the out-of-state broker acts under those terms.
Alabama Chapter 790, Rule 790-X-1-.05(3)Timely renewal requires filing by August 31 of the final year; filing September 1–30 incurs a $150 penalty; an expired license may only be renewed in the 12-month period following expiration, after which the licensee must meet all new-applicant requirements.
Alabama Real Estate License Laws, Section 34-27-35(g)Both require a passing grade of 70, but reciprocal applicants must also complete 6 hours of Commission-prescribed reciprocal prelicense coursework and provide a certification of licensure from the qualifying state obtained within 120 days prior to issuance.
Alabama Chapter 790, Rule 790-X-1-.18(1)Key Terms
Formulas to Know
Sale Price × Commission Rate = Commission $Sale Price − (Commission $ + Closing Costs + Loan Payoff) = Seller's NetDesired Net ÷ (1 − Commission Rate) = Required Sale Price (ignoring other costs)Required Sale Price = (Desired Net + Fixed Costs) ÷ (1 − Commission Rate)Annual Amount ÷ 365 = Daily Rate; Daily Rate × # Days = Prorated AmountLoan Amount ÷ Appraised Value (or Sale Price) = LTV RatioSale Price × Down Payment % = Down Payment $; Sale Price − Down Payment $ = Loan AmountSale Price ÷ Gross Monthly Rent = GRM; or GRM × Gross Monthly Rent = Estimated ValueNet Operating Income ÷ Property Value = Cap Rate; NOI ÷ Cap Rate = Property ValueTotal Fixed Costs ÷ (Revenue per Unit − Variable Cost per Unit) = Break-Even Units