Broker and REALTOR®: How to Become a Real Estate Broker in Alabama

To become a real estate broker in Alabama, a licensed salesperson must hold an active salesperson license for at least 24 of the 36 months preceding the application, complete a 60-hour broker prelicense course approved by AREC, and pass the state licensing exam with a score of 70 or higher. The broker license lets you work independently, supervise agents, and operate your own brokerage. A REALTOR®, by contrast, is a membership designation through the National Association of REALTORS® (NAR) that either an agent or a broker can hold. The Alabama Real Estate Commission (AREC) oversees the broker licensing process, and Pearson VUE administers the exam.

The path to an Alabama broker license

The broker upgrade process in Alabama builds on an existing salesperson license rather than starting from scratch. Four requirements stand between a salesperson and a broker license: documented experience, a prelicense course, the state licensing exam, and a completed application filed with AREC. Each carries its own deadline.

What distinguishes a real estate broker from a salesperson in Alabama

A real estate broker in Alabama has met education and experience standards beyond those of a salesperson, allowing the broker to work independently, hire agents, and oversee transactions without supervision from another broker. A salesperson must work under a qualifying broker and cannot operate independently.

Alabama law issues the salesperson license to the qualifying broker, not to the salesperson directly. When a salesperson changes brokerages, the qualifying broker returns the license to AREC, and a $25 transfer fee applies for the new license, per the AREC FAQ^[1]. A broker can serve as a qualifying broker for other licensees.

The Bureau of Labor Statistics^[2] describes three tiers of brokers nationally: associate brokers, who work under another broker; managing brokers, who oversee transactions and daily operations; and principal or designated brokers, who supervise agents for compliance. In Alabama, all three roles fall under the single broker license category; the function depends on the business arrangement.

A REALTOR® is not a license type. According to the National Association of REALTORS®^[3], a REALTOR® is a licensed real estate professional who has joined NAR and agreed to abide by its Code of Ethics. Both agents and brokers can become REALTORS® by joining their local REALTOR® association and paying membership dues. NAR reports more than 1.5 million members.

Eligibility requirements for an Alabama broker license

Alabama broker applicants must meet age, citizenship, education, experience, and background standards set by AREC. The experience requirement is the factor that separates the broker pathway from the initial salesperson pathway.

According to the AREC licensing page^[4], broker applicants must be at least 19 years old, be a U.S. citizen, permanent resident alien, or legally present, show proof of bona fide residency in a U.S. state, show proof of high school graduation or equivalent, not have a felony or moral turpitude conviction, and not have had a real estate application or license rejected or revoked in any state within the past two years.

The experience requirement mandates that the applicant has held an active real estate salesperson license in any state for at least 24 months of the 36-month period immediately preceding the date of application. The requirement is cumulative, not continuous, so gaps in licensure are acceptable as long as the total active time reaches 24 months within the 36-month window. The experience can be earned in any state, not just Alabama.

Applicants must submit to a fingerprint-based federal and state criminal background check through Fieldprint. Criminal history record information is available to AREC for 30 days after processing, per the AREC application instructions^[5].

Completing the 60-hour broker prelicense course

Alabama requires broker applicants to complete a 60-clock-hour broker prelicense course through a school approved by AREC before scheduling the licensing exam, according to the AREC FAQ^[1].

After completing the course, you must pass the state broker licensing exam within 6 months. If you do not pass within that window, you must retake the prelicense course, per AREC course requirements^[6].

Attorneys and CPAs are not exempt from the prelicense course or the licensing exam, per the AREC FAQ^[1].

Taking the Alabama broker licensing exam

The broker licensing exam is administered by Pearson VUE^[7] and can be scheduled at home.pearsonvue.com/al/realestate or by calling 888-926-9488, as listed on the AREC exam scheduling page^[8]. The exam consists of 120 scored questions: 80 national or general items and 40 state-specific items, plus 5 to 10 unscored pretest items. The passing score is 70, as established by Alabama Administrative Code Rule 790-X-2-.02^[9].

Pearson VUE replaced PSI as Alabama's exam administrator on January 3, 2023, per the AREC educator newsletter^[10]. The previous simulation-format questions were discontinued at that time. The broker exam now uses the same content outline as the salesperson exam, with more application and analysis questions at the broker level, according to the Pearson VUE content outlines^[11].

There is no limit on exam retakes within the allowed testing window following course completion, per the AREC FAQ^[1]. If you do not pass before that window expires, you must retake the prelicense course.

Submitting your broker license application

Once you pass the broker exam, AREC gives you a narrow window to file your license paperwork. The completed application, supporting documents, and fees must reach the commission within 90 days of the exam date, per AREC application instructions^[5]. Missing this deadline voids the exam score. Fees vary by license type; refer to the license application for the exact amount owed.

Applications must be mailed or delivered to AREC at 1201 Carmichael Way, Montgomery, Alabama 36106, with a check or money order. Credit cards are not accepted in the office. It may take up to two business days for AREC to receive exam pass results from Pearson VUE.

If you currently hold an active salesperson license, your qualifying broker must return it to AREC when you submit your broker application materials. You may not engage in real estate business until the broker license has been issued to your qualifying broker.

Life after licensure: no post-license course for brokers

Alabama does not require brokers to complete a post-license course after receiving their broker license. According to AREC course requirements^[6], there is no post-license requirement for brokers, unlike salespersons, who must complete a post-license course within their first year.

The broker prelicense course satisfies all continuing education hours required for the next license renewal period, per the AREC FAQ^[1]. After that first renewal, brokers must complete continuing education every two years, with a September 30 deadline in even-numbered years. The on-time broker renewal fee is $205, as published in the AREC 2024 Special License Renewal Issue.

The reciprocal broker pathway for out-of-state licensees

Brokers licensed in another state can obtain an Alabama broker license through reciprocity, which requires a 6-hour Alabama law course and the state-specific portion of the broker exam rather than the full prelicense course. According to AREC reciprocal license requirements^[12], the reciprocal exam has a 1-hour time limit, a passing score of 70, and must be completed within 6 months of finishing the reciprocal course. A certification of licensure from the applicant's home state must be issued within 120 days of AREC receiving the application.

Career outlook for Alabama real estate brokers

The Bureau of Labor Statistics^[2] reports a median annual wage of $72,280 for real estate brokers as of May 2024, compared with $56,320 for sales agents. The lowest 10% of brokers earned less than $36,920, while the highest 10% earned more than $166,730. Approximately 54% of brokers and agents are self-employed.

BLS projects 3% employment growth for real estate brokers and sales agents from 2024 to 2034, matching the average across all occupations. The field projects approximately 46,300 annual openings over that period.

In Alabama, the broker license lets you operate your own brokerage, hire and supervise agents, and serve as a qualifying broker for other licensees. Alabama does not issue a separate commercial real estate broker license; the broker license covers all property types.

Next steps

Your first step is to enroll in a broker prelicense course through an AREC-approved school. Once you complete the course, schedule the broker exam through Pearson VUE. After passing, submit your application and fees to AREC. If you hold an active salesperson license, coordinate with your qualifying broker to return it when you submit your broker application.