Exam Cheat Sheet · Quick Reference
Alabama Real Estate Broker State Portion
Alabama · Pearson Vue
Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
120
40 state + 80 national
Passing score
70%
each portion
Exam time
230 min
≈ 3.83333 hr, one sitting
Administered by
Pearson Vue
Format
Closed-book
Alabama State Portion 40 questions
LICENSING REQUIREMENTS
6 Q · 15%
A. Activities which require a licenseB. CobrokeringC. Qualifications for a licenseD. Renewal of a licenseE. Continuing educationF. Post-license educationG. Temporary and original Salesperson licenses
LICENSE STATUS
2 Q · 5%
A. Transferring a licenseB. Inactive statusC. Reactivation of a license
DISCIPLINARY ACTIONS AND PROCESS
3 Q · 8%
A. ComplaintsB. HearingsC. Disciplinary actionsD. RehearingE. Appeals
ESTIMATED CLOSING STATEMENT
2 Q · 5%
Required elements and timing of estimated closing statementsAcknowledgment and documentation requirementsClient vs customer distinction in providing statementsRecords retention for estimated closing statements
BROKER LICENSES, COMPANY LICENSES, AND PLACE OF BUSINESS
6 Q · 15%
A. Issuance of company and branch office licensesB. Issuance of broker licensesC. Who may serve as qualifying brokerD. Responsibilities of qualifying brokerE. Termination of qualifying broker statusF. Serving as qualifying broker for more than one companyG. Temporary qualifying brokerH. Associate broker statusI. Operating from home
RECOVERY FUND
1 Q · 2%
A. Payment into fundB. Payment from fund
TRUST FUNDS
3 Q · 8%
Trust account requirements and deposit proceduresRecord keeping and accounting obligationsDisbursement of trust funds and earnest moneySecurity deposit handling for rental propertiesTrust fund violations and penaltiesCommingling prohibitionsTrust account establishment and management
RECAD
5 Q · 12%
Real estate brokerage services disclosure requirementsAgency relationships and typesBrokerage agreements and consumer consentAgency disclosure office policy requirementsDuties and obligations of licenseesLimited consensual dual agencyTransaction broker servicesDesignated single agency
VIOLATIONS WHICH MAY RESULT IN DISCIPLINARY ACTIONS
12 Q · 30%
A. Misrepresentation and dishonest dealingsB. Inducing a party to break a contractC. AdvertisingD. Listing agreementsE. Failure to give proper disclosureF. Keeping appropriate recordsG. RebatesH. Paying or receiving commissions fromunlicensed personsI. Failure to inform Commission of suit/judgment/other dispositionJ. Lotteries
+3 more
National Portion 80 questions
Property Ownership
8 Q · 10%
Real vs personal propertyLand characteristics and legal descriptions (metes & bounds, lot & block, government survey)Measuring structures and land measurementEncumbrances: liens, easements, encroachments, subsurface/air/water rightsTypes of ownership: severalty, tenants in common, joint tenancy, common-interest, trusts, business entities, life estate
Land Use Controls
4 Q · 5%
Government rights in land: taxes, special assessments, eminent domain, escheatGovernment controls on land use: zoning, building codes, environmental regulationsPrivate controls: deed conditions, CC&Rs, HOA/condo bylaws
Valuation and Market Analysis
6 Q · 8%
Appraisals: when required, licensed/certified appraiser requirements, appraisal processEstimating value: economic principles affecting valueSales comparison approachCost approachIncome analysis approach (GRM, cap rate)Comparative Market Analysis (CMA), Broker Price Opinion (BPO), Automated Valuation Models (AVM)
Financing
8 Q · 10%
Loan terminology: points, LTV, PMI, PITI, underwriting criteriaMortgage clauses, promissory notes, deeds of trustLoan types: conventional, amortized, ARM, FHA, VA, USDA, owner financing, reverse mortgage, HELOC, construction, bridgeLending legislation: RESPA, Truth in Lending (Reg Z), TRID, Equal Credit Opportunity ActSecondary mortgage market: Fannie Mae, Freddie Mac, Ginnie Mae
Contracts
15 Q · 19%
General contract law: valid elements, Statute of Frauds, offer and acceptanceContract enforceability: void, voidable, unenforceable contractsBilateral vs unilateral contracts, option contractsElectronic signatures and digital transactionsRights, obligations, and breach remediesPurchase agreements: addenda, amendments, contingenciesLease contracts: types of leases, lease-purchase agreementsMultiple offers and counteroffers
Agency
10 Q · 13%
Agency vs non-agency relationshipsListing contracts: exclusive right-to-sell, exclusive agency, open listing, net listingBuyer brokerage and buyer representation agreementsTransaction brokers and facilitatorsPower of attorney, termination of agencyFiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, reasonable care (OLD CAR)Duties to customers and non-clientsAgency disclosure requirements and conflict of interest
Property Disclosures
6 Q · 7%
Property condition disclosures: seller disclosure requirements, inspections, surveysRed flags and material defectsEnvironmental disclosures: lead-based paint, asbestos, radon, mold, underground storage tanksGovernment disclosures: flood zones, wetlands, endangered speciesMaterial facts and duty to disclose
Property Management
2 Q · 3%
Tenant procurement and qualificationFair housing compliance in property management and ADAMarket analysis for establishing rentsLandlord/tenant rights and obligations
Transfer of Title
5 Q · 6%
Types of deeds: general warranty, special warranty, quitclaim, bargain and saleTitle insurance: owners vs lenders policies, title searches, title problemsClosing process: recordation, settlement statements, warrantiesSpecial processes: foreclosure, short sale, deed in lieu, probate
Practice of Real Estate
10 Q · 12%
Federal Fair Housing Act: protected classes, prohibited conduct, exemptionsAmericans with Disabilities Act (ADA) requirementsAntitrust laws: price fixing, group boycotts, market allocation, tie-in agreementsDo-Not-Call Registry and telemarketing rulesSocial media and internet advertising regulationsHandling earnest money and trust fundsDue diligence and fiduciary responsibilitiesIndependent contractor vs employee status
Real Estate Calculations
6 Q · 7%
Seller net proceeds calculationsBuyer funds required at closingProrations: taxes, insurance, rent, HOA duesTransfer tax and recording fee calculationsPITI (Principal, Interest, Taxes, Insurance) calculationsCommission calculations and splitsEquity, capitalization rate, and LTV calculationsDiscount points and origination feesArea and volume conversions (sq ft, acres)
Key Distinctions
Active LicensevsInactive License
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)Temporary Salesperson LicensevsOriginal (Permanent) Salesperson License
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)Qualifying BrokervsAssociate Broker / Salesperson
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)Listing CompanyvsSelling Company
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 optionLimited Consensual Dual AgentvsTransaction Broker
A 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)Real Estate Brokerage Services Disclosure Form (RECAD Form)vsAgency Disclosure Office Policy (ADOP)
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)Salesperson Prelicense CE Requirement (15 hours)vsAssociate/Qualifying Broker CE Requirement (15 hours including Broker course)
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)Alabama Qualifying Broker in Co-BrokeragevsOut-of-State Broker in Co-Brokerage
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)License Renewal (on time)vsLicense Renewal (late / expired)
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)Reciprocal License ExamvsStandard Alabama License Exam
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
Stay of Revocation (Section 34-27-36(a)) Alabama Real Estate License Laws, Title 34, Chapter 27, Section 34-27-36(a) (stay of revocation provisions)
Under Alabama law, the commission may stay a license revocation or suspension and require the licensee to complete an approved education course and/or make restitution to trust accounts.
Agency Disclosure Clause (Section 34-27-8(c)) Alabama Real Estate License Laws & Rules Title 34, Section 34-27-8(c)
A clause required to be prominently displayed on every offer to purchase prepared after August 1, 1998, identifying the agency relationships of the listing company and selling company, with two blocks checkable per company and initialing by the parties.
Qualifying Broker Responsibility (Section 34-27-34(a)(2)) Alabama Real Estate License Laws & Rules Title 34, Section 34-27-34(a)(2)
Alabama law holds the qualifying broker responsible to the commission and the public for all acts governed by license law of each salesperson and associate broker licensed under them and for each company for which they are qualifying broker.
Inactive License (Section 34-27-2(a)(7)) Alabama Real Estate License Laws & Rules Title 34 – Chapter 27, Section 34-27-2(a)(7)
An Alabama license held by the commission office by law, order of the commission, at the licensee's request, or which is renewable but not currently valid due to failure to renew.
RECAD – Real Estate Consumers Agency and Disclosure Act (Section 34-27-82 / Rule 790-X-3-.13(2)) Section 34-27-82(c) and 790-X-3-.13(2)
Alabama law requiring licensees to provide the Real Estate Brokerage Services Disclosure form to consumers as soon as reasonably possible and before any confidential information is disclosed; excludes rental/property management and certain corporate transactions.
Agency Disclosure Office Policy – ADOP (Section 34-27-83 / Rule 790-X-3-.14(1)) Section 34-27-83 and 790-X-3-.14(1)
A policy adopted and maintained by the qualifying broker that sets out the types of brokerage services the company may offer and compensation information.
Temporary Salesperson License (Section 34-27-33(c)) Alabama Real Estate License Laws, Section 34-27-33(c)(2)
An Alabama license issued after passing the exam that is not subject to renewal, expires after one year, and converts to an original license only upon completing the 30-hour post-license course within six months; failure to complete within six months places it on inactive status.
Co-Brokerage Earnest Money Escrow (Rule 790-X-1-.05(5)) Alabama Chapter 790, Rule 790-X-1-.05(5)
Under Alabama rules, all earnest money in a co-brokerage agreement must be held in escrow by the Alabama qualifying broker unless both buyer and seller agree in writing to relieve the broker of this responsibility.
Reciprocal License Certification Requirement (Rule 790-X-1-.18(1)) Alabama Chapter 790, Rule 790-X-1-.18(1)
A certification of licensure from the qualifying state must be obtained within the 120 days immediately prior to the issuance of an Alabama reciprocal license.
Minimum Age for Alabama Real Estate License (Section 34-27-32(a)(4)) Alabama Real Estate License Laws, Section 34-27-32(a)(4)
Applicants for a broker's or salesperson's license in Alabama must be at least 19 years old.
Broker License Experience Requirement (Section 34-27-32(c)(1)) Alabama Real Estate License Laws, Section 34-27-32(c)(1)
An applicant who does not hold a current broker license in another state must prove at least 24 months of active salesperson licensure within the 36-month period immediately preceding application.
Post-License CE Exemption for First Renewal (Section 34-27-33(c)(4)) Alabama Real Estate License Laws, Section 34-27-33(c)(4)
A holder of an original license who completed the post-license course is not subject to continuing education requirements for the first renewal of that original license.
Dual Agency – Acting for More Than One Party (Section 34-27-36(a)(7)) Alabama Real Estate License Laws & Rules Title 34, Section 34-27-36(a)(7)
A licensee who acts for more than one party in a transaction without the written knowledge and consent of all parties is subject to disciplinary action under Alabama law.
License Transfer Fee (Section 34-27-34(b)) Alabama Real Estate License Laws & Rules Title 34 – Chapter 27, Section 34-27-34(b)
When a salesperson or associate broker transfers to a new qualifying broker in Alabama, a fee of $25 is required to obtain a new license certificate for the unexpired term.
Criminal Background Check (Section 34-27-32(j)) Alabama Real Estate License Laws, Section 34-27-32(j)
The Alabama Real Estate Commission requires both state and national criminal history background checks, including fingerprinting, before issuing a real estate license.
Salesperson Prelicense Clock Hours (Rule 790-X-1-.06(5)(c)) Alabama Chapter 790, Rule 790-X-1-.06(5)(c)
The Alabama salesperson prelicense course must consist of 60 clock hours, with no more than 8 hours of credit per day, and applicants must pass the license examination within 6 months of completing the course.
Formulas to Know
Commission Dollar Amount
Sale Price × Commission Rate = Commission $Seller's Net Proceeds
Sale Price − (Commission $ + Closing Costs + Loan Payoff) = Seller's NetSale Price Needed for Seller's Net Goal
Desired Net ÷ (1 − Commission Rate) = Required Sale Price (ignoring other costs)Listing Price to Net a Specific Amount
Required Sale Price = (Desired Net + Fixed Costs) ÷ (1 − Commission Rate)Proration (daily rate method)
Annual Amount ÷ 365 = Daily Rate; Daily Rate × # Days = Prorated AmountLoan-to-Value Ratio
Loan Amount ÷ Appraised Value (or Sale Price) = LTV RatioDown Payment
Sale Price × Down Payment % = Down Payment $; Sale Price − Down Payment $ = Loan AmountGRM (Gross Rent Multiplier)
Sale Price ÷ Gross Monthly Rent = GRM; or GRM × Gross Monthly Rent = Estimated ValueCap Rate
Net Operating Income ÷ Property Value = Cap Rate; NOI ÷ Cap Rate = Property ValueBreak-Even Point (units/time)
Total Fixed Costs ÷ (Revenue per Unit − Variable Cost per Unit) = Break-Even Units