Alabama Real Estate License Exam 2026/2027 – Complete
Exam-Style Questions with Detailed Rationales | 100% Verified –
Pass Guaranteed – A+ Graded
Question 1
Under Alabama Code Title 34, Chapter 8, which entity has the authority to issue,
suspend, and revoke real estate licenses in Alabama?
A. The Alabama Department of Revenue
B. The Alabama Real Estate Commission (ALREC)
C. The Alabama State Bar Association
D. The Alabama Department of Insurance
Correct Answer: B
Rationale: The Alabama Real Estate Commission (ALREC) is the statutory licensing and
regulatory authority established under Title 34, Chapter 8 of the Code of Alabama. The
primary distractor is A; the Department of Revenue handles tax matters, not
professional licensing.
Question 2
A salesperson in Birmingham has been licensed for 18 months and wishes to open their
own brokerage. Under Alabama law, what is the minimum requirement?
A. The salesperson may open a brokerage immediately with a provisional license
B. The salesperson must hold an active salesperson license for at least 24 months
before qualifying for a broker's license
C. The salesperson may operate as a broker with a written waiver from ALREC
D. There is no minimum experience requirement for broker licensure in Alabama
Correct Answer: B
,Rationale: Alabama Code § 34-8-4 requires applicants for a broker's license to have
been actively licensed as a salesperson for at least 24 months (or equivalent experience
approved by ALREC). The primary distractor is D; Alabama does require demonstrated
experience before broker licensure.
Question 3
A listing agent in Mobile represents a seller. A buyer's agent presents an offer. Under
Alabama's mandatory agency disclosure law, when must the listing agent disclose their
agency relationship to the seller?
A. At the first substantive contact with the seller
B. Only when a written offer is presented
C. Within 72 hours of executing a listing agreement
D. Agency disclosure is not required in Alabama
Correct Answer: A
Rationale: Alabama law requires disclosure of agency relationships at the first
substantive contact with a prospective client, not merely at contract execution. The
primary distractor is D; Alabama has mandatory agency disclosure requirements.
Question 4
A property in Jefferson County is sold for $285,000. The listing agreement specifies a
6% commission. The listing broker and selling broker agree to a 50/50 split. The listing
salesperson receives 60% of their broker's share. What is the listing salesperson's
commission?
A. $5,130
B. $5,700
C. $8,550
D. $17,100
Correct Answer: A
,Rationale: Total commission = $285,000 × 6% = $17,100. Listing broker's share =
$17,100 × 50% = $8,550. Listing salesperson's share = $8,550 × 60% = $5,130. The
primary distractor is B; this represents the selling broker's share before salesperson
split.
Question 5
Under the Alabama Uniform Residential Landlord and Tenant Act, how many days'
notice must a landlord provide to terminate a month-to-month tenancy without cause?
A. 7 days
B. 14 days
C. 30 days
D. 60 days
Correct Answer: C
Rationale: Alabama Code § 35-9A-441 requires 30 days' written notice to terminate a
month-to-month tenancy without cause. The primary distractor is A; 7 days applies to
week-to-week tenancies.
Question 6
A buyer in Tuscaloosa purchases a home built in 1975. Which federal disclosure is
mandatory regarding potential environmental hazards?
A. Radon disclosure only
B. Lead-Based Paint Disclosure
C. Asbestos abatement certification
D. Mold remediation report
Correct Answer: B
Rationale: Federal law (42 U.S.C. § 4852d) requires sellers of pre-1978 housing to
provide buyers with a Lead-Based Paint Disclosure and the EPA pamphlet "Protect Your
, Family from Lead in Your Home." The primary distractor is A; radon disclosure is not
federally mandated for all transactions.
Question 7
A property in Baldwin County is sold on July 15. Annual property taxes of $2,400 are
paid in arrears. Using the 365-day method for proration, how much will the buyer credit
the seller at closing?
A. $1,180
B. $1,200
C. $1,220
D. $1,240
Correct Answer: C
Rationale: Seller owns property January 1 through July 15 = 196 days
(31+28+31+30+31+30+15). Daily tax = $2,400 ÷ 365 = $6.5753. Seller's share = 196 ×
$6.5753 = $1,220 (rounded). The primary distractor is B; this incorrectly uses a 360-day
calculation.
Question 8
Under Alabama law, which type of deed provides the greatest protection to the grantee?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed
D. Special warranty deed
Correct Answer: C
Rationale: A general warranty deed provides the highest level of protection, with the
grantor warranting against all title defects, including those that may have arisen before
the grantor's ownership. The primary distractor is A; a quitclaim deed conveys whatever
interest the grantor has without any warranties.
Exam-Style Questions with Detailed Rationales | 100% Verified –
Pass Guaranteed – A+ Graded
Question 1
Under Alabama Code Title 34, Chapter 8, which entity has the authority to issue,
suspend, and revoke real estate licenses in Alabama?
A. The Alabama Department of Revenue
B. The Alabama Real Estate Commission (ALREC)
C. The Alabama State Bar Association
D. The Alabama Department of Insurance
Correct Answer: B
Rationale: The Alabama Real Estate Commission (ALREC) is the statutory licensing and
regulatory authority established under Title 34, Chapter 8 of the Code of Alabama. The
primary distractor is A; the Department of Revenue handles tax matters, not
professional licensing.
Question 2
A salesperson in Birmingham has been licensed for 18 months and wishes to open their
own brokerage. Under Alabama law, what is the minimum requirement?
A. The salesperson may open a brokerage immediately with a provisional license
B. The salesperson must hold an active salesperson license for at least 24 months
before qualifying for a broker's license
C. The salesperson may operate as a broker with a written waiver from ALREC
D. There is no minimum experience requirement for broker licensure in Alabama
Correct Answer: B
,Rationale: Alabama Code § 34-8-4 requires applicants for a broker's license to have
been actively licensed as a salesperson for at least 24 months (or equivalent experience
approved by ALREC). The primary distractor is D; Alabama does require demonstrated
experience before broker licensure.
Question 3
A listing agent in Mobile represents a seller. A buyer's agent presents an offer. Under
Alabama's mandatory agency disclosure law, when must the listing agent disclose their
agency relationship to the seller?
A. At the first substantive contact with the seller
B. Only when a written offer is presented
C. Within 72 hours of executing a listing agreement
D. Agency disclosure is not required in Alabama
Correct Answer: A
Rationale: Alabama law requires disclosure of agency relationships at the first
substantive contact with a prospective client, not merely at contract execution. The
primary distractor is D; Alabama has mandatory agency disclosure requirements.
Question 4
A property in Jefferson County is sold for $285,000. The listing agreement specifies a
6% commission. The listing broker and selling broker agree to a 50/50 split. The listing
salesperson receives 60% of their broker's share. What is the listing salesperson's
commission?
A. $5,130
B. $5,700
C. $8,550
D. $17,100
Correct Answer: A
,Rationale: Total commission = $285,000 × 6% = $17,100. Listing broker's share =
$17,100 × 50% = $8,550. Listing salesperson's share = $8,550 × 60% = $5,130. The
primary distractor is B; this represents the selling broker's share before salesperson
split.
Question 5
Under the Alabama Uniform Residential Landlord and Tenant Act, how many days'
notice must a landlord provide to terminate a month-to-month tenancy without cause?
A. 7 days
B. 14 days
C. 30 days
D. 60 days
Correct Answer: C
Rationale: Alabama Code § 35-9A-441 requires 30 days' written notice to terminate a
month-to-month tenancy without cause. The primary distractor is A; 7 days applies to
week-to-week tenancies.
Question 6
A buyer in Tuscaloosa purchases a home built in 1975. Which federal disclosure is
mandatory regarding potential environmental hazards?
A. Radon disclosure only
B. Lead-Based Paint Disclosure
C. Asbestos abatement certification
D. Mold remediation report
Correct Answer: B
Rationale: Federal law (42 U.S.C. § 4852d) requires sellers of pre-1978 housing to
provide buyers with a Lead-Based Paint Disclosure and the EPA pamphlet "Protect Your
, Family from Lead in Your Home." The primary distractor is A; radon disclosure is not
federally mandated for all transactions.
Question 7
A property in Baldwin County is sold on July 15. Annual property taxes of $2,400 are
paid in arrears. Using the 365-day method for proration, how much will the buyer credit
the seller at closing?
A. $1,180
B. $1,200
C. $1,220
D. $1,240
Correct Answer: C
Rationale: Seller owns property January 1 through July 15 = 196 days
(31+28+31+30+31+30+15). Daily tax = $2,400 ÷ 365 = $6.5753. Seller's share = 196 ×
$6.5753 = $1,220 (rounded). The primary distractor is B; this incorrectly uses a 360-day
calculation.
Question 8
Under Alabama law, which type of deed provides the greatest protection to the grantee?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed
D. Special warranty deed
Correct Answer: C
Rationale: A general warranty deed provides the highest level of protection, with the
grantor warranting against all title defects, including those that may have arisen before
the grantor's ownership. The primary distractor is A; a quitclaim deed conveys whatever
interest the grantor has without any warranties.
