Alabama · Real estate exam prep
Practice Alabama real estate questions free below. RealReady has 1,035 questions in the bank covering both national real estate principles and Alabama state law. Pay $17.99 once and own it forever. No subscription like the other prep services.
The Alabama real estate salesperson exam is one of the toughest in the country. The Alabama Real Estate Commission (AREC) contracts with Pearson VUE to deliver it as a single 3.5-hour test split into an 80-question national portion and a 40-question Alabama law and rules section. You sit for both portions back-to-back at the same Pearson VUE testing center, and you need a scaled score of 70 to pass.
State-specific prep matters more here than almost anywhere else. Alabama's Real Estate Consumer's Agency and Disclosure Act (RECAD), the agency overhaul that took effect October 1, 2025 (ending limited consensual dual agency and introducing designated single agency), the Alabama Real Estate Recovery Fund, AREC's licensing and disciplinary powers, and the rules in Title 34 Chapter 27 of the Alabama Code all show up on the state portion. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need Alabama-specific practice questions.
Below are 20 free Alabama real estate test questions and answers from RealReady's full Alabama bank. Each tests a specific topic with the correct answer and a plain-English explanation under the card. Read each one, commit to an answer, then reveal. Treat it like a real AREC practice test, and the ones you miss show you what to focus on next.
Get the RealReady app on iPhone, iPad, or Android for the rest of the Alabama question bank. The full app includes short articles that walk you through the why behind each topic, detailed explanations on every question, a missed-question drill mode, and progress tracking that shows your per-category accuracy.
Practice
Use this like a free Alabama real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.
Correct: A 9 members
AREC consists of 9 members appointed by the Governor with the advice and consent of the Alabama Senate. They serve staggered 5-year terms. At least one must be a consumer representative.
Correct: C Requires a real estate license
Negotiating or facilitating the sale of real estate for another person for compensation requires a license in Alabama. The form of compensation (cash, gift card, etc.) does not matter. Even occasional acts for compensation trigger the licensing requirement.
Correct: A Temporary salesperson license
After passing the exam and affiliating with a qualifying broker, the candidate receives a temporary salesperson license. It is valid for one year total: active for the first six months only, then automatically inactive for the remaining six months. To stay active, the licensee must complete the 30-hour post-license course and have the original license issued before the first six months end.
Correct: C They supervise all licensees in the company
The qualifying broker is responsible for supervising ALL licensees in the company. They cannot serve as qualifying broker for more than one company simultaneously and must have at least 24 of the 36 months preceding their application as an active salesperson.
Correct: A $600,000
The Alabama Recovery Fund must maintain a minimum balance of $600,000. The fund is replenished by the $30 fee paid by each original license applicant. If the balance drops below this threshold, additional assessments may be required.
Correct: D Any person, including consumers and licensees
Alabama law allows any person to file a written complaint against a licensee with the Alabama Real Estate Commission. The complainant does not need to be a consumer or another licensee; the process is open to anyone with knowledge of potential violations.
Correct: D Two documents
Alabama requires licensees to present two disclosure documents at initial contact: the RECAD Brokerage Services Disclosure Form (state-mandated) and the ADOP (company-created). Both must be provided as soon as reasonably possible at initial contact.
Correct: B Full fiduciary duties including loyalty and confidentiality
Single agency in Alabama means the licensee owes full fiduciary duties to the client: loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care. This is the highest level of duty a licensee can owe and distinguishes client relationships from customer relationships.
Correct: A A federally insured institution in Alabama
Alabama law requires that trust accounts be maintained in a federally insured financial institution located within the state of Alabama. Out-of-state institutions do not satisfy this requirement regardless of their insurance status.
Correct: B The qualifying broker or company name
Alabama requires all real estate advertisements to include the name of the qualifying broker or the company name as licensed with AREC. Using only an individual agent's name without the broker or company name does not satisfy this requirement.
Correct: C Material misrepresentation
Alabama Code §34-27-36(a)(3) lists 'making a material misrepresentation' as a ground for disciplinary action against a licensee. Knowingly misstating the roof age is a direct false statement about a fact a reasonable buyer would weigh in deciding to purchase, so it is material. AREC can revoke or suspend the license, impose a $100 to $2,500 fine, or both.
Correct: B Paying an unlicensed person
Alabama law prohibits paying any commission, fee, or compensation to unlicensed persons for real estate brokerage activities. All compensation for referrals or services must flow to properly licensed individuals through the qualifying broker.
Correct: C Seller owes the buyer a credit
Alabama's property tax year runs October 1 through September 30 and taxes are paid in arrears (billed each October for the year just ended). At a September 15 closing the seller has occupied the property for nearly the full tax year without paying that year's bill, and the buyer will pay it in October. The seller therefore owes the buyer a closing credit for the seller's portion of the tax year.
Correct: D A licensed Alabama attorney
Alabama is an attorney state for real estate closings. Licensed Alabama attorneys prepare deeds, mortgages, and other legal closing documents. Real estate licensees and title companies cannot prepare these legal instruments, though title companies may handle title searches and insurance.
Correct: A At least one
AREC requires at least 1 consumer representative who has not been a licensee for the preceding 10 years. The remaining 8 members are typically real estate licensees nominated by the Alabama Association of REALTORS.
Correct: C 3 transactions
Under the 2025 co-brokerage amendments, out-of-state brokers are limited to a maximum of 3 transactions per year in Alabama, with a $50 million annual volume cap. An Alabama broker must supervise the out-of-state broker's actions.
Correct: B They may practice under their qualifying broker
A temporary license holder can fully practice real estate under their qualifying broker's supervision. The temporary status relates to the post-license education requirement, not their practice authority. They must complete 30 hours within 6 months.
Correct: B Agency Disclosure Office Policy (ADOP)
The qualifying broker must create and distribute the ADOP to every licensee at least once per year. Licensees must sign acknowledging receipt, and the broker keeps signed copies on file. This is separate from the state-mandated RECAD form.
Correct: A Licensed brokers or salespersons
The Recovery Fund covers losses caused by licensed brokers or salespersons. Claims cannot be filed against unlicensed or inactive licensees. The fund covers only actual/compensatory damages, not interest or court costs.
Correct: B Yes, the Commission may self-initiate investigations
The Alabama Real Estate Commission has the authority to self-initiate investigations even without receiving a formal complaint. This power allows the Commission to proactively enforce licensing laws whenever it becomes aware of potential violations.
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FAQ
The Alabama Real Estate Salesperson Examination has 120 scored multiple-choice questions, split into an 80-question national portion and a 40-question Alabama state law section. Pearson VUE mixes in another 10 to 15 unscored pretest items that look identical to the real ones, so plan to answer roughly 130 to 135 questions in total.
AREC requires a scaled score of 70 to pass. Pearson VUE uses a statistical equating process so the difficulty of different exam forms is matched, which means the raw number of correct answers needed varies slightly by form. Practically, aim to answer at least 70% of every section correctly. Numerical scores are only reported to candidates who fail.
The salesperson examination fee is $73 per attempt as of August 1, 2025. Reciprocal candidates (already licensed in another state) pay $53 to sit for the Alabama state portion only. The fee is paid to Pearson VUE at the time of reservation and is non-refundable.
Three and a half hours (210 minutes) total. The national portion is 2.5 hours and the state portion is 1 hour, taken back-to-back at the same Pearson VUE testing center. You'll find out whether you passed before you leave.
Roughly half of Alabama candidates have to retake at least one portion, which gives you a sense of the difficulty. The questions aren't tricky for the sake of being tricky. They're written to test whether you actually understand real estate law and Alabama-specific practice. Most people who fail aren't lazy; they underestimated how much Alabama-specific material is on the state portion (RECAD, the Recovery Fund, AREC's disciplinary procedures, the 2025 agency law changes) and over-prepared on national principles. Honest practice on an Alabama-specific practice exam is the difference between passing on the first try and retaking the $73 exam.
The 80-question national portion covers eight areas (per Pearson VUE's April 2025 outline): real property characteristics and land use (about 14% of questions); forms of ownership, transfer, and recording of title (about 11%); property value and appraisal (about 14%); real estate contracts and agency (about 20%); real estate practice (about 13%); property disclosures and environmental issues (about 11%); financing and settlement (about 9%); and real estate math calculations (about 9%). The 40-question Alabama state portion (effective February 1, 2026) covers licensing requirements and license status, broker and company licenses, the Recovery Fund, disciplinary actions, trust funds, estimated closing statements, RECAD agency disclosure, and violations that can trigger discipline. Alabama-specific topics like the post-October-2025 agency framework (single agency, designated single agency, dual agency, transaction facilitator) are tested heavily on the state portion.
After finishing your 60-hour pre-license course, the highest-leverage thing you can do is grind through Alabama-specific practice questions with honest feedback on every miss. Generic real estate practice tests will help with national principles but won't catch you on Alabama's unique rules. The RealReady app gives you the full bank of Alabama questions plus the national bank, with progress tracking and a missed-question mode so you can drill what you're weak on. Most users study 30 to 60 minutes a day for 2 to 4 weeks before sitting the AREC exam.
