Alabama Real Estate License Requirements

Getting your Alabama real estate license requires completing 60 hours of state-approved education, passing the official exam, and securing a sponsoring broker. The entire process can range from four to eight weeks, depending on your schedule and how quickly you complete the steps. This guide provides everything you need to know to become a licensed real estate agent in Alabama.

Quick Alabama License Facts

Requirement	Details
Education Hours	60 hours (One primary course)
Estimated Timeline	4-8 weeks, varies by study schedule
Age Requirement	19+ years old
Background Check	Required
Exam Format	Computer-based, multiple-choice
Official Body	Alabama Real Estate Commission (AREC)

Disclaimer: Always verify current requirements with the Alabama Real Estate Commission (AREC).

How to Get Your Alabama Real Estate License in 4 Steps

Step 1: Complete 60 Hours of Pre-License Education

Alabama requires aspiring agents to complete a 60-hour pre-licensing course from an AREC-approved school.

Required Course: Salesperson Pre-License Course (60 hours)
Study Schedule Considerations: The time to complete your education depends on your available study hours per week and learning pace. Some students complete courses in a few weeks with intensive study, while others prefer a more gradual approach over several months.

Step 2: Pass the Alabama Real Estate Exam

After successfully completing your coursework, you must pass the Alabama Real Estate Salesperson Exam. The exam is administered by PSI.

Format: Computer-based test
Passing Score: You must achieve a score of 70% or higher to pass.
Exam Topics Include:

Alabama real estate law and license regulations
Real property and ownership
Contracts and agency
Property valuation and finance
Federal and state housing laws

Always check with the AREC and PSI for the most current exam details, fees, and scheduling information.

Step 3: Submit Your License Application & Background Check

Application: Within 90 days of passing the exam, you must apply for your temporary license.
Background Check: You must provide fingerprints for an FBI and state-level criminal background check.
Fees: Pay all required application and licensing fees.
Disclosure: Alabama law requires full disclosure of any past criminal history.

Step 4: Find a Sponsoring Broker

In Alabama, a real estate agent must work under the supervision of a licensed broker. Your broker will sign your application and guide you as you begin your career.

Broker Role: Your broker provides essential training, mentorship, and oversight for all transactions.
Finding a Broker: Research local brokerages to find one that aligns with your career goals, offers a supportive environment, and has a fair commission structure.

Alabama Real Estate License Costs

The total cost to get your license in Alabama can vary, but here is a general breakdown of expenses.

Expense Category	Estimated Cost Range	Notes
Pre-License Education	$250 – $450	Varies by school and package (online vs. in-person).
State Application & License Fee	~$210	Set by the Alabama AREC.
Exam Fee	~$77	Paid to the testing vendor (PSI).
Background Check Fee	~$50	Varies by vendor.
Total Estimated Cost	$587 – $787	Does not include optional materials or post-license costs.

Note: These are estimates. Always check the official AREC and PSI websites for the most current fee schedules.

Ongoing Costs to Consider:

License Renewal: Your license must be renewed every two years.
Continuing Education: Required for every renewal cycle.
MLS Fees: Varies by local board/association.
Errors & Omissions (E&O) Insurance: Often required by your broker.
Professional Association Dues: Fees for joining local, state, and national Realtor® associations.

Alabama Real Estate License Cost Breakdown

Estimated Initial Licensing Costs in Alabama

A visual breakdown of typical startup expenses for an Alabama license.

Disclaimer: These figures are estimates for 2025 and can vary significantly based on the school chosen, exam retakes, and optional materials purchased. Always check official sources for the most current fees.

Alabama Real Estate Schools

When selecting a real estate school, consider factors like learning format, support services, pricing, and student reviews. Here are some well-known state-approved providers:

The CE Shop

Benefits: Offers a 40% military discount and a career resource center.
Website: theceshop.com

Colibri Real Estate

Benefits: Features a “Pass or Don’t Pay” guarantee and offers livestream options.
Website: colibrirealestate.com

Auburn University

Benefits: University-backed curriculum and strong local recognition.
Website: auburn.edu

School Selection Tips:

Compare current pricing and package options.
Read recent student reviews and success rates.
Consider your preferred learning style.
Check for money-back guarantees or pass guarantees.
Verify military discounts if applicable.
Ensure the school is approved by the Alabama AREC.

Contact schools directly for current pricing, promotions, and specific features.

Alabama Real Estate Exam Preparation

Study Strategies for Success

Set a consistent study schedule based on your availability.
Focus on understanding concepts, not just memorization.
Take practice exams to identify weak areas.
Review Alabama-specific laws and regulations thoroughly.
Allow adequate time for exam preparation after completing courses.

Key Areas to Master

Real estate math and calculations.
Agency relationships and fiduciary duties.
Alabama disclosure requirements.
Contract law and purchase agreements.
Fair housing regulations.
Property valuation methods.

Common Study Mistakes to Avoid

Rushing through course material.
Skipping practice exams.
Insufficient focus on Alabama-specific content.
Poor time management during the actual exam.
Not reading questions completely.

Success Timeline by Professional Background

Different professional backgrounds may influence your licensing timeline and approach:

Sales Professionals: Potential advantages: Strong communication skills, understanding of commission-based income, experience with client relationships.
Teachers and Educators: Potential advantages: Strong study habits, excellent presentation skills, patience with detailed processes.
Military and Veterans: Potential advantages: Discipline, reliability, understanding of relocation, potential access to education benefits and VA loans.
Career Changers: Considerations: May need more time for industry concepts, but transferable skills and a fresh perspective are valuable.

Individual results vary regardless of background. Success depends on dedication, study habits, and commitment to learning.

Alabama Real Estate Market Context

Market Characteristics

Alabama’s real estate market includes:

Growing metropolitan hubs in Huntsville, Birmingham, and Montgomery.
A thriving coastal market for vacation and residential homes.
A mix of historic properties and new construction.
Consistent demand for rural homes and land.

Opportunities for New Agents

Potential specialization areas include:

First-time home buyers
Military relocations
New construction sales
Coastal and vacation properties
Investment properties

Market conditions change regularly. Stay informed through local MLS data, market reports, and industry publications.

Alabama-Specific Legal Requirements

Disclosure

Alabama is a “caveat emptor” (let the buyer beware) state, but agents are still required to disclose known material defects that could pose a direct threat to health or safety. Understanding these nuances is critical.

Criminal History

The Alabama Real Estate Commission requires a full criminal background check and reviews applications on a case-by-case basis. Full and honest disclosure is essential for your application to be considered.

Disclosure requirements and other state laws are complex. Proper training and broker guidance are essential.

Getting Started – Action Steps

Immediate Next Steps: Research schools, verify AREC requirements, and enroll in your course.
During Your Education: Stay engaged, use school support, and start networking.
Preparing for Career Launch: Research brokerages, consider your target market, and prepare for interviews.

Continuing Education and License Renewal

Renewal Requirements

Alabama real estate licenses must be renewed every two years with 15 hours of continuing education, including a 3-hour Risk Management course.

Check the AREC website for current continuing education requirements and topics.

Professional Development

Consider ongoing education in market specializations, technology, and legal updates to stay competitive.

Official Resources and Support

Alabama Real Estate Commission (AREC): The official source for all licensing rules, applications, and fee schedules (arec.alabama.gov).
PSI: The official vendor for scheduling and taking the state exam.
Alabama REALTORS®: The state’s largest professional association for real estate agents, offering resources, education, and advocacy.

Disclaimers

Accuracy Notice: This guide is for informational purposes. All requirements, fees, and timelines are subject to change. Always verify information with the official Alabama Real Estate Commission.
No Legal Advice: This content is not legal or financial advice.
School Information: School offerings, prices, and promotions change. Contact schools directly for the most current details.

This guide was last updated in July 2025. For a personalized plan based on your background and goals, use the AI Real Estate Career Planner tool.