Broker Guide

The Alabama Broker Guide

Plain-English answers to the compliance questions real estate brokers, agents and property owners ask most — each one tied back to the Alabama statute or Real Estate Commission rule that actually governs it.

Last reviewed August 4, 2026
What does a qualifying broker do?
A qualifying broker is the licensee legally answerable for a brokerage: supervision, office policy, trust funds, advertising review and records. Here is the job, with the Alabama rules behind it.
What are the earnest money rules for Alabama brokers?
Alabama earnest money rules: a separate federally insured account at an Alabama institution, the qualifying broker as signatory, immediate deposit of cash, and disbursement within seven business days of closing.
What are the advertising rules for Alabama real estate licensees?
Alabama advertising rules for real estate: ads must be truthful, must display the brokerage name prominently, and require the owner's consent before a sign goes up. Social media is covered too.
How long must an Alabama broker keep transaction records?
Alabama brokers must retain transaction records for three years — including failed transactions and rejected offers — under §34-27-36(a)(31), kept secure at the place of business.
What is RECAD and how does agency disclosure work in Alabama?
RECAD governs how Alabama licensees disclose whom they represent. Single agency, dual agency and transaction facilitator explained, plus the written office policy requirement.
Who needs a real estate license to manage property in Alabama?
Alabama property management licensing: renting, leasing, negotiating and collecting rent are licensed activities. Owners are exempt; apartment managers are exempt; condominium on-site managers are not.
What can an unlicensed assistant do in Alabama real estate?
Alabama unlicensed assistants may do clerical and administrative work — phones, MLS data entry, signs, bookkeeping — but may not show property, negotiate, or discuss listing agreements.
How should a broker reconcile a real estate trust account?
A three-way trust account reconciliation matches the bank statement, the journal and the sum of beneficiary ledgers every month — the check an office audit performs directly.
How is rental property income taxed?
A plain-English overview of rental income types, deductible expenses, the repair versus improvement line, and 27.5-year residential depreciation. Educational only, not tax advice.
Should I manage my rental myself or hire a property manager?
How to decide between self-managing a rental and hiring a professional manager: the real cost of your time, the skills required, and how to vet a management company.

About this guide

Every article here is written in our own words and cites the Alabama statute or Real Estate Commission rule it rests on, so you can check the primary source yourself. The Alabama Real Estate Commission publishes the current license law and administrative rules at arec.alabama.gov. Rules change; the review date above tells you when we last checked.