AL Real Estate Law Exam Practice
Questions And Correct Answers (Verified
Answers) Plus Rationale 2026 Q&A|
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Domain 1: Alabama Real Estate License Law
Question 1
The Alabama Real Estate Commission (AREC) consists of how many members?
A) 3 members appointed by the Governor
B) 5 members appointed by the Governor
C) 7 members elected by licensees
D) 9 members appointed by the Legislature
Answer: B) 5 members appointed by the Governor
Rationale: The Alabama Real Estate Commission is composed of five members
appointed by the Governor. Members serve staggered terms and must have been active
in the real estate business for at least five years prior to appointment.
Question 2
Which of the following is NOT a function of the Alabama Real Estate Commission?
A) Issuing real estate licenses
B) Setting commission rates for brokers
,C) Investigating complaints against licensees
D) Enforcing the Alabama Real Estate License Law
Answer: B) Setting commission rates for brokers
Rationale: The Commission does not set commission rates. Commission rates are
negotiable between brokers and their clients. The Commission's role is regulatory,
including licensing, investigations, discipline, and enforcement.
Question 3
A real estate license in Alabama must be renewed every:
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Answer: B) 2 years
Rationale: Alabama real estate licenses are renewed biennially (every two years).
Licensees must complete continuing education requirements and pay renewal fees to
maintain an active license.
Question 4
How many hours of continuing education (CE) are required for license renewal in
Alabama?
A) 8 hours
B) 12 hours
,C) 15 hours
D) 20 hours
Answer: C) 15 hours
Rationale: Alabama requires 15 hours of continuing education per renewal period,
including a mandatory 3-hour course on current legal and legislative issues.
Question 5
A salesperson's license must be held under the supervision of:
A) Any licensed real estate agent
B) A qualifying broker
C) The Alabama Real Estate Commission
D) The local board of REALTORS®
Answer: B) A qualifying broker
Rationale: A salesperson must be associated with and supervised by a qualifying broker
(also called a supervising broker) who is responsible for the salesperson's activities and
compliance with license law.
Question 6
Which of the following is a requirement for obtaining a real estate salesperson license in
Alabama?
A) High school diploma or equivalent
B) Completion of 60 hours of pre-license education
C) Passing the state and national portions of the exam
D) All of the above
, Answer: D) All of the above
Rationale: Requirements include: at least 18 years of age, high school diploma or
equivalent, completion of 60 hours of approved pre-license education, and passing both
the state and national portions of the licensing exam.
Question 7
A salesperson terminates their association with a broker. How many days does the
salesperson have to notify the Commission and find a new broker?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: B) 15 days
Rationale: Upon termination of association, the salesperson must notify the
Commission within 15 days. The license becomes inactive until a new broker is secured.
Question 8
Which of the following activities requires a real estate license in Alabama?
A) An attorney drafting a purchase agreement for a client
B) A property owner selling their own home
C) A person receiving compensation for negotiating the sale of another's property
D) A court-appointed executor selling property
Questions And Correct Answers (Verified
Answers) Plus Rationale 2026 Q&A|
Instant Download Pdf
Domain 1: Alabama Real Estate License Law
Question 1
The Alabama Real Estate Commission (AREC) consists of how many members?
A) 3 members appointed by the Governor
B) 5 members appointed by the Governor
C) 7 members elected by licensees
D) 9 members appointed by the Legislature
Answer: B) 5 members appointed by the Governor
Rationale: The Alabama Real Estate Commission is composed of five members
appointed by the Governor. Members serve staggered terms and must have been active
in the real estate business for at least five years prior to appointment.
Question 2
Which of the following is NOT a function of the Alabama Real Estate Commission?
A) Issuing real estate licenses
B) Setting commission rates for brokers
,C) Investigating complaints against licensees
D) Enforcing the Alabama Real Estate License Law
Answer: B) Setting commission rates for brokers
Rationale: The Commission does not set commission rates. Commission rates are
negotiable between brokers and their clients. The Commission's role is regulatory,
including licensing, investigations, discipline, and enforcement.
Question 3
A real estate license in Alabama must be renewed every:
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Answer: B) 2 years
Rationale: Alabama real estate licenses are renewed biennially (every two years).
Licensees must complete continuing education requirements and pay renewal fees to
maintain an active license.
Question 4
How many hours of continuing education (CE) are required for license renewal in
Alabama?
A) 8 hours
B) 12 hours
,C) 15 hours
D) 20 hours
Answer: C) 15 hours
Rationale: Alabama requires 15 hours of continuing education per renewal period,
including a mandatory 3-hour course on current legal and legislative issues.
Question 5
A salesperson's license must be held under the supervision of:
A) Any licensed real estate agent
B) A qualifying broker
C) The Alabama Real Estate Commission
D) The local board of REALTORS®
Answer: B) A qualifying broker
Rationale: A salesperson must be associated with and supervised by a qualifying broker
(also called a supervising broker) who is responsible for the salesperson's activities and
compliance with license law.
Question 6
Which of the following is a requirement for obtaining a real estate salesperson license in
Alabama?
A) High school diploma or equivalent
B) Completion of 60 hours of pre-license education
C) Passing the state and national portions of the exam
D) All of the above
, Answer: D) All of the above
Rationale: Requirements include: at least 18 years of age, high school diploma or
equivalent, completion of 60 hours of approved pre-license education, and passing both
the state and national portions of the licensing exam.
Question 7
A salesperson terminates their association with a broker. How many days does the
salesperson have to notify the Commission and find a new broker?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: B) 15 days
Rationale: Upon termination of association, the salesperson must notify the
Commission within 15 days. The license becomes inactive until a new broker is secured.
Question 8
Which of the following activities requires a real estate license in Alabama?
A) An attorney drafting a purchase agreement for a client
B) A property owner selling their own home
C) A person receiving compensation for negotiating the sale of another's property
D) A court-appointed executor selling property
