Alabama Real Estate License Law: Rules & Regulations

Instructor: Tara Schofield

Tara has a PhD in Marketing & Management

Learn what license law is, what it applies to, and how it affects you before and after you get your real estate license. Then, understand what a co-brokerage is and how a broker becomes a co-broker.

What is License Law?

In Alabama, there are specific activities that cannot be done without a real estate license. The license law outlines what a person can and cannot do without a real estate license. It also explains what you can do once you complete the requirements for your real estate license. Let's look at what activities are regulated by license law.

What Requires a License?

The key factor in license law is if you are getting commission or compensation for any of the activities outlined by the law. If you are getting paid for any type of consideration for helping with the following activities, you must have a real estate license. These activities include:

  • Selling, purchasing, or renting real estate in Alabama
  • Offering your services to help sell, purchase, or rent properties in Alabama
  • Negotiating a listing, purchase, sale, or rental of properties in Alabama
  • Listing or offering to list property for sale or rent in Alabama
  • Auctioning or agreeing to auction real estate in Alabama
  • Buying or selling options of real estate in Alabama
  • Helping or offering to help find a home for purchase or lease in Alabama
  • Working to find prospects to purchase or rent a property in Alabama
  • Representing yourself as an agent when you don't have a license

Many of these activities are things you may do to help a friend or family member without having a real estate license. It's reasonable to think you may help your brother find a house if he is looking for a new place to live or tell your friend about a house that is for sale in your neighborhood prior to getting your real estate license. These activities are not wrong or inappropriate. The problem is with earning a payment or commission for doing any of the listed activities. When you are getting paid, you are acting as a real estate agent. Real estate agents must be licensed. If you are earning money doing the work of an agent without having a license, you are breaking the law.

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