27.1 AL – Broker and Company Licenses
In Alabama, real estate licenses aren’t “floating” licenses—every salesperson and broker license is registered to a
specific real estate office under a qualifying broker. In this topic, you’ll learn how broker licenses are issued,
what counts as a “company” or “branch office,” and the qualifying broker’s role in supervision and compliance.
Issuance of Broker Licenses (What a Broker Applicant Must Do)
To become licensed as a broker in Alabama, an individual must apply using an AREC-designated form that specifies the
real estate office where the broker will be registered. The applicant must also meet Alabama’s education, experience,
and personal requirements.
General personal requirements (same as salesperson):
- U.S. citizen or permanent resident alien, or legally present in the U.S.
- At least 19 years old
- High school graduate (or equivalent)
- Resident of any U.S. state
- No felony conviction or crime involving moral turpitude
- No rejection of a real estate license application or revocation of a real estate license in any state within the previous 2 years
Criminal Background + Fingerprints
- If convicted of a felony or a crime involving moral turpitude, the applicant may file an
Application for Determination of Licensing Eligibility for AREC review. - AREC requires state and national criminal history checks. The applicant must submit required information and fingerprints
(on the approved fingerprint card) through the required agencies or an AREC-approved fingerprint processing service. - The applicant pays the cost of the criminal history check, and it must be current to the date of license issuance.
Salesperson Experience Requirement
- Must have been licensed as an active real estate salesperson in any state for at least 24 months
within the 36 months prior to applying. - Proof of this licensure must be submitted with the broker application.
Coursework + Exam Requirement
- Complete a 60-hour AREC-approved broker pre-license course.
- Apply for and pass the national and state broker licensure exam with a score of at least 70%.
- The exam must be taken and passed within 6 months of course completion.
What Happens After the Broker License Is Issued?
- Once the broker license is issued, the broker’s salesperson license automatically terminates.
- The salesperson license certificate must be returned to AREC for the broker license to be issued.
- A broker license applicant must maintain a place of business.
Associate broker status: Alabama brokers must be registered to a real estate business and under that business’s qualifying broker.
Once registered, the broker becomes an associate broker (any broker other than a qualifying broker).
Company and Branch Office Licenses (What AREC Requires)
AREC defines a company broadly (sole proprietorship, corporation, partnership, branch office, or other lawful business organization).
Alabama law requires every qualifying broker and every place of business to have a company license.
- The qualifying broker applies for the company license or branch office license using an AREC-approved form.
- Branch office licenses use a special application because the branch qualifying broker and the main company qualifying broker
share responsibility for branch activities. - The qualifying broker must be an officer, partner, or employee of the company.
- If there is more than one place of business in Alabama, the company needs a company or branch office license for each location.
Key “place of business” rules:
- Application must include the location and the qualifying broker’s name.
- Each location must be supervised by a qualifying broker licensed at that address.
- Each location must have its own qualifying broker (no qualifying broker serving more than one location).
- Branch and main qualifying brokers share equal responsibility for licensees assigned to that office.
Every activity requiring a license must be performed in the name of the licensed company under the qualifying broker.
If the qualifying broker declines to support certain services (example: property management), licensees under that company
must not perform those services outside the company’s name and supervision.
Each company license expires at midnight on September 30 of the final year of the license period.
Broker and Company Licenses
Choose the best answer for each question, then select Check Answers.
Which of the following is required for an Alabama broker applicant?
Alabama requires 24 months of active salesperson licensure within the 36 months prior to applying.
Under Alabama law, which statement is TRUE about licensed activity?
Alabama requires that activities requiring a license be performed in the company’s name and under the qualifying broker’s supervision.
Great job! You have the key points of this topic down.
