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Termination of Qualifying Broker Status in Alabama Real Estate

Instructor: Tara Schofield

Tara has a PhD in Marketing & Management

How do you cancel or terminate your status when you're a qualifying broker? Learn the basic situations that can happen and how those situations are handled with the Alabama Real Estate Commission.

What Is a Qualifying Broker?

Every real estate office must have a qualifying broker, a broker who manages the operations of the brokerage and oversees the work of the agents. The qualifying broker is responsible for the best interest of the clients and ensuring the Alabama Real Estate Commission's rules are followed.

Imagine you have worked as a sales agent for several years and decided to become a broker. You complete the necessary requirements and open your own office as a qualifying broker. You hire several agents and are putting all of your energy and time into growing your business.

Terminating Qualifying Broker Status

There are several reasons that a qualifying broker may terminate their status (or have their status terminated). Let's review several examples.

You continue working long hours, weekends, holidays, and every day in between. In fact, you realize you haven't had a vacation for four years. Your agency was really doing well until the bottom fell out of the market last year. Now your agency is losing money. You decide you want to go back to sales full-time and close your agency. In this situation, you can submit an application to the commission to change your status to an associate broker working for a different agency and close your agency. When you close your agency, your agents will need to find a different agency to work with.

In a different scenario, your agency has been open for 20 years, you've worked hard and done really well. However, you are ready to retire and pursue other interests. You decide to sell your agency to another broker and make your license inactive. You may or may not return to real estate later on. For now, you are happy with stepping away completely.

Our final scenario, the Alabama Real Estate Commission has reviewed your records and found several substantial violations. Several earnest money deposits were mishandled, you have two pending lawsuits from clients for accusations of fraud, and when the commission reviewed your records many extensive mistakes were found. You received a warning three months ago. However, the violations have continued. The commission has revoked your license permanently. You will not be able to work as a qualifying broker in Alabama any longer.

Handling License Changes

In the first two examples, you are choosing to make a change to your license. In order to have your license handled properly by the commission, you need to submit paperwork to alert the commission of the status change.

Transfer

Your agents can transfer their licenses to another agency by sending a note to the commission and having the new broker accept the agents' license on the Alabama Real Estate Commission's website.

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