Broker License Status & Reactivation for Alabama Real Estate

Instructor: Tara Schofield

Tara has a PhD in Marketing & Management

Brokers have a responsibility to keep their licenses active and work with their agents closely. Likewise, they also have a responsibility to help their agents manage their licenses appropriately.

Broker Licenses

Real estate brokers play an important role in the real estate industry. You will find that working with the right broker will help you close more transactions, have more clients, and excel at your job. Brokers have been where you are - they started as a new real estate agent and have put in the time and effort to advance to the rank of a broker. Let's talk about what it takes to become a broker and how you will work with your broker.

A broker's license can be pursued after you have at least 24 months of licensed real estate experience within the last 36 months. Once you have completed the requirements, you must apply and pay $150 for a broker's license fee.

Transferring a License

As an agent you will have the opportunity to work with a broker, who will help you get your license transferred to his or her agency. Once your license is tied to a brokerage, you will be ready to work. You may work with the same broker long term or you may choose to move from one agency to another

Let's imagine you've been working for Chloe, a broker in your local area. You've been with her agency for about 5 months and have learned many important things from Chloe's team. In the meantime, you have met Sam, a broker who you really click with. You've decided to transfer your license, or move your license from Chloe's brokerage to Sam's agency.

In order to transfer your license, you will need to send a notice to both the Alabama Real Estate Commission and Chloe. This is both to inform the agency and Chloe of the change and as a courtesy to Chloe to let her know you will be moving to another agency.

After you've provided notice, Sam will need to file a request for transfer and a form showing he will accept liability for your work as an agent in his brokerage. Additionally, Sam will need to pay a $25 transfer fee. Your license will be transferred to Sam for the remaining term of your original license.

What Is An Inactive License?

Working at Sam's agency has been a nice change of pace. However, your father has become ill and you have decided to take a break from real estate to go to your home state to care for him. Because this may be a long-term situation, you make a request to the Alabama Real Estate Commission to make your license inactive. There is no fee to make your license inactive.

Your license will be held at the commission office until you activate your license again. While you have an inactive license you cannot perform any tasks that require an active real estate license. Keep in mind that you must still renew your license even if it is in inactive status. If you do not renew it when it is set to expire, you will not have a license to reactivate later.

On the other hand, if Sam decides to put his license on inactive status, all agents must move to a different agency, as his making his license inactive halts all activities of all real estate agents within that brokerage. You cannot do any activities that require a license if your broker's license is inactive or expired. You must move to a new agency before doing any other work.

Reactivating a License

Your father's health has improved and he is healthy and living on his own again. This gives you the chance to return to your city and start doing real estate again. You contact the Alabama Real Estate Commission and alert them that you are ready to take your license out of inactive status.

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