(**) Disclosure: This post may contain affiliate links, meaning RealEstateCareerHQ.com will get a commission if you decide to make a purchase through the links, but at no additional cost to you.
To become a real estate broker in Alabama, you must:
- Be at least 19 years and meet all eligibility requirements;
- Have at least 24 months of real estate salesperson experience;
- Complete 60 hours of Broker Pre-license course from an approved education provider;
- Pass the Alabama Real Estate Broker Exam;
- Submit an application and $210 to the Alabama Real Estate Commission
If you have been working as a real estate sales associate in Alabama for some time, and wish to bring your business to the next level, then upgrading your license to become a real estate broker could be a sensible choice.
Rather than making income solely based on your sales production, being a broker allows you to build a team of real estate agents. You’ll be recruiting, providing training and support to your underlying agents. In return, you would get a share of their commission.
In this guide, you’ll learn the steps to become a real estate broker, income updates, and FAQs on this profession.
(By the way, if you are just starting the real estate career, but haven’t obtained the sales associate license yet, you should read over this career starter guide first.)
6 Steps to Become a Real Estate Broker in Alabama
Step 1: Meet the Eligibility Requirement
You’ll need to be at least 19 years old, completed high school education, have a valid Social Security Number, Citizen of the United States or lawfully admitted alien.
Step 2: Fulfill the Work Experience Requirement
You have been a licensed real estate salesperson for at least 24 months of the 36 month period preceding the application date. The work experience can be accumulated in state other than Alabama.
Step 3: Complete the Pre-Licensing Education
You must complete 60 hours of Broker Pre-license courses from an approved education provider. These are not the same courses as the one you took in the salesperson license curriculum.
Step 4: Pass the Alabama Real Estate Broker Exam
The exam is to make sure you have adequate real estate knowledge in becoming a broker. Similar to the salesperson exam, the broker exam is also administered by the PSI/AMP and you’ll register for it online. The fee is $77.
It is a 3.5 hours exam, and the required passing score is 75. Once again, the exam is divided into the National Portion and the State Portion.
Here is more info about the State Broker Portion
It consists of 40 multiple-choice questions and you’ll have 60 minutes in writing it.
| Exam Content | # of Questions |
|---|---|
| Licensing Requirements | 6 |
| License Status | 2 |
| Broker Licenses, Company Licenses and Place of Business | 6 |
| Recovery Fund | 1 |
| Disciplinary Actions and Process | 3 |
| Estimated Closing Statement | 2 |
| Trust Funds | 3 |
| RECAD | 5 |
| Violations which may result in disciplinary actions | 12 |
Here is the content of the National Broker Portion
This portion of the exam consists of 10 simulation problems. Each one will consist of the following:
- Scenario (It will provide the setting and introductory client details such as age, gender and presenting problems)
- Information Gathering (IG)
- Decision Making (DM)
Cramming for the exam is ineffective. Instead, you should study for 45 to 60 minutes, then take a break. Concentration tends to wander if you study for too long. If possible, focus on studying only one to two topics per day. But be really good at it.
PrepAgent is an exam prep that I highly recommend. Many students were able to pass the real estate exam after doing their practice questions. Over 97% of users provided a 5 out of 5 stars rating to them on Facebook. Click here to check out their package options. (**)
Step 5: Register with the Alabama Real Estate Commission
Similar to the registration process of being a salesperson, once you pass the exam, you receive receive the application in the test center. Once you complete the form, you may mail it to the Alabama Real Estate Commission along with the $210 license fee and other necessary documents.
You’ll also need to submit a fingerprint for a background check. It is done through the approved vendor, Gemalto.
The criminal record information will be sent to the Commission directly from Gemalto, but it will only be available for 30 days. Therefore, you should submit the application and go through the fingerprinting process on the same day.
Step 6 : Maintain the Real Estate Broker License
You need to renew your license annually. You may do so through the online portal. The renewal fee can be paid with eCheck or credit card.
During each license period, you need to obtain 15 hours of CE credits.
A Quick Table Summary of Becoming a Real Estate Broker in Alabama
| Work Experience | Education | Exam | Fees |
|---|---|---|---|
| Have been a licensed real estate salesperson for at least 24 months in the last 36 months period. | 60 hours of pre-licensing broker course | 3.5 hours 40 Multiple-choice questions 10 simulation problems Required passing score is 75 | Pre-licensing broker course around $300 Exam fee $77 Application fee $210 |
How long does it take to become a real estate broker in Alabama?
It takes approximately one month to get a real estate broker license in Alabama. But it also depends on the time it takes you to complete the 60 hours broker pre-licensing course, exam, background check, application.
How much does it cost to get a real estate broker license in Alabama?
It costs approximately $587 to get a real estate broker license in Alabama. Here’s the breakdown:
- 60 hours of Broker Course – $300 (Approx.)
- Exam fee is – $77
- License fee – $210
However, if you were setting up a real estate brokerage, the cost of getting a broker license is only part of the expense. There is also other office expenses such as salary of administrative staff, office lease, furniture, equipment, software subscriptions.
Can you get a real estate broker license with a felony in Alabama?
The Alabama Real Estate Commission will put into consideration the applicant’s honesty, trustworthiness, character, and integrity. Whether a felon can get a real estate license is subjected to how the Real Estate Commission evaluates the case.
However, Alabama has one of the most stringent rules when it comes to issuing real estate licenses to applicants with a felony record. According to the info stated on their website, they require an applicant to:
- Not have been convicted of a felony or a crime involving moral turpitude;
- Not have had a real estate application or license rejected or revoked in any state within the past two years.
But don’t get discouraged as everyone has a past. The most important is that you can demonstrate that you will serve the public in a fair, honest, and open manner.
Here’s an article that covers how to apply for a real estate license with a felony record. In there, you’ll find practical tips which could help your application.
How much do real estate brokers make in Alabama?
According to the Bureau of Labor Statistic, real estate brokers in Alabama earn an average yearly salary of $50,810. It typically ranges from $36,210 and $57,480. Some top earning brokers are making $78,250 per year. (*)
There are 240 real estate brokers in Alabama. It works out there are 0.12 real estate brokers per 1000 of workers.
At the beginning phase, you could experience a lower income. It’s going to take time to build up your brand and recruit real estate agents. But as you continue to grow your team and sharpen your business skills, you should be able to notice a significant improvement in your earning.
Your earning potential as a real estate broker would depend on your sales team’s production and the commission splitting schedule. In other words, your ultimate role is to provide support so that your sales agent can close more deals.
Here’s another post you could be interested. “Do Brokers Make More than Real Estate Agents? (Facts Revealed)“
(*) Bureau of Labor Statistic – May 2019
I have more questions about the Alabama real estate license, whom should I contact?
You could contact the Alabama Real Estate Commission. Below is their contact info:
- Address: 1201 Carmichael Way Montgomery, AL 36106
- Phone: (334) 242-5544
- Fax (334) 270-9118
- arec@arec.alabama.gov
To prepare for this guide, I also called them to verify some details. Their phone line is very quick. It took less than three minutes to transfer to the right department. The answers I got from them are very constructive too.
If you are reading up to this point, I bet you must be interested in becoming a real estate broker. Go through practice questions indeed can help you better prepare for the exam. PrepAgent is the exam prep that I highly recommend. You may click here to check out their package options. (**)
(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.
Reference:
- State of Alabama Real Estate Commission (Source)
- FAQ (source)
- Alabama Real Estate Examination Program Candidate Handbook (Source)
- Bureau of Labor Statistics (May 2019)
- State Occupational Employment and Wage Estimates Alabama (source)
- Occupational Employment and Wages, Real Estate Brokers (Source)
