How to Become a Real Estate Broker in Alabama

Are you looking to take your real estate career to the next level in the state of Alabama? In this blog, you’ll learn everything you need to know about becoming a real estate broker—from the basic eligibility requirements to the application process. We’ll also walk you through how long it takes, how much it costs, and why pursuing a broker’s license might be the best next step for your real estate career. By the end, you’ll be well-prepared to start your journey toward becoming a successful real estate broker in Alabama.

Steps to Become a Real Estate Broker in Alabama

Becoming a licensed real estate broker in Alabama requires fulfilling specific prerequisites and following a systematic process. Below is a quick overview of the steps you’ll need to take.

1. Confirm Eligibility Requirements
2. Hold an Active Alabama Real Estate License
3. Enroll in an Accredited Alabama Real Estate Broker Program
4. Pass the Alabama Broker Licensing Exam
5. Submit Your Broker License Application 
6. Complete Continuing Education Requirements

1. Confirm Eligibility Requirements

Before you start the journey, ensure you meet the initial qualifications set by the Alabama Real Estate Commission (AREC). Generally, you must:

• Be at least 19 years of age
• Have a high school diploma or equivalent
• Show proof of bona fide residency in any state in the U.S.
• Demonstrate good moral character (often includes passing a background check)

Always check the AREC website for the most current requirements and regulations.

2. Hold an Active Alabama Real Estate License

To qualify for a broker’s license in Alabama, you must have held an active salesperson license for at least 24 of the 36 months preceding your broker application. This experience helps ensure you have the practical background necessary to manage transactions and supervise other agents effectively.

3. Enroll in an Accredited Alabama Real Estate Broker Program

You’ll need to complete a 60-hour Alabama Broker Pre-License Course through an accredited real estate school. We highly recommend joining our partnered real estate broker’s program, which offers in-depth coursework tailored to Alabama’s requirements.

Typical Course Topics Include:

• License Law/Violations
• General Principles of Agency/Fiduciary Duty/Practice of Real Estate
• Fair Housing/Risk Management/Real Property/Land Use Controls
• Forms of Ownership/Transfer and Recording of Title
• Property Value and Appraisals/Property Disclosures and Environmental Issues
• Real Estate Contracts/Lender Requirements
• Federal Financing Regulations/Settlement and Closing
• Real Estate Math Calculations

Most courses require you to pass a final exam at the end of the 60-hour program to receive your course completion certificate. Make sure you study thoroughly—this final exam is an important step in ensuring you’re prepared for the state licensing exam.

4. Pass the Alabama Broker Licensing Exam

After finishing the 60-hour pre-license course, you can schedule and take your Alabama broker licensing exam. Here’s what you should know:

• How to Apply for the Exam:
  
  • Contact the approved testing provider (currently PSI).
  • Register online or by phone, providing your course completion details.
  • Pay the exam fee of  $70
  • Choose your preferred exam date and testing location.
• Number of Questions: 140 questions (100 national + 40 state)
• Time Allowed: 3.5 hours total
• Passing Score: 70% or higher

Use the study materials from your pre-license course, take practice tests, and review all important concepts. A passing score will move you one step closer to obtaining your broker’s license.

5. Submit Your Broker License Application

Once you pass the exam, you need to submit a formal application for your broker’s license to the Alabama Real Estate Commission. Your application must include proof of education, proof of passing the exam, and the required fees. Keep an eye on processing times, as they can vary. Once your application is approved, you’ll receive your official broker license.

6. Complete Continuing Education Requirements

You will need to maintain your license by completing continuing education (CE) hours before each renewal period. 

Alabama requires 15 hours of CE every two years.

Brokers must complete two mandatory 3-hour CE courses entitled Risk Management: Initial Contact to Accepted Offer and Mandatory Broker CE Course along with 9 hours of elective CE courses.

FAQs about Becoming a Real Estate Broker in Alabama

Below are some common questions about becoming a real estate broker in Alabama. Whether you’re just starting out or seeking clarity on specific steps, these FAQs should help guide you.

Should You Become a Real Estate Broker in Alabama?

A broker’s license can open the door to greater earning potential, increased autonomy, and the authority to manage other real estate professionals. As a broker, you can run your own brokerage, build a team, and grow your business in ways that a salesperson license might not allow.

If you’ve gained a solid foundation as a real estate salesperson and are ready for more responsibility and flexibility, obtaining a broker’s license in Alabama is a logical next step. You’ll be able to command higher commissions, shape your own business strategy, and establish a more influential presence in the local real estate market.

How Fast Can You Get a Broker’s License?

Complete the 60-hour Pre-License Course: Typically takes anywhere from a few weeks to a couple of months, depending on your schedule.

Take and Pass the Broker Exam: Schedule your exam as soon as you finish your coursework; the exact timing depends on available testing slots.

Submit Your Application: After passing the exam, it generally takes a few weeks for the Alabama Real Estate Commission to process your license application.

Overall Timeline: Most individuals can expect to obtain their broker license within 2–4 months from start to finish.

How Much Do Real Estate Brokers Make?

Real estate broker income in Alabama depends on factors like location, client base, market conditions, and individual business strategies. 

According to the most recent data gathered from salary aggregator sites (e.g., Indeed, Glassdoor) and local market analyses, the average salary for a real estate broker is $106,043 per year in Alabama, with top producers often earning significantly more. 

How Much Does a Real Estate Broker’s License Cost?

While the costs can vary slightly, here’s an approximate breakdown of what you might expect:

1. Pre-License Education: $300 – $600 (depending on the school and materials)
2. Exam Fee: $70
3. License Application and Other Fees: $300 – $650
4. Post-Licensing/Continuing Education: $100 – $200 per course (though no special “broker post-license” course is required, you will need regular continuing education)

These costs can fluctuate, so always check the Alabama Real Estate Commission’s website for the most current fees and requirements.

What’s the Difference Between Real Estate Brokers and Agents?

Real estate agents (or salespersons) are licensed professionals authorized to represent buyers and sellers in real estate transactions, but they must work under a broker’s supervision. They cannot operate independently or open their own brokerage.

Brokers, on the other hand, have met additional education and experience requirements, and hold a license that allows them to run a brokerage firm. Brokers can hire and supervise other agents, handle escrow funds, and establish their own business policies. In short, brokers have a higher level of responsibility and authority in the real estate industry compared to agents.

Does Alabama Have a Broker’s License Reciprocity Agreement?

Yes, Alabama offers reciprocity for real estate brokers licensed in certain states. If you hold a valid broker license in another state with a reciprocal agreement, you may be eligible to obtain a broker license in Alabama with reduced coursework or no additional exam requirements. 

Be sure to consult the Alabama Real Estate Commission’s official website for the most current reciprocity details and the complete list of states.

Final Thoughts on Becoming a Real Estate Broker in Alabama

If you're looking to take your real estate career to the next level, becoming a broker in Alabama is a smart move. It opens the door to higher income, more independence, and the chance to build something truly your own.

With the right training, a strong work ethic, and a clear game plan, there's no limit to how far you can go in Alabama's real estate market.

Feeling ready? Our partnered Alabama broker licensing program is designed to guide you every step of the way—with expert support, top-quality materials, and the full 60-hour pre-license course you need. Just hit the “Enroll” button below to get started. Your next chapter begins here.