Broker Guide

The Alabama Broker Guide

Plain-English answers to the questions real estate brokers, agents, owners and renters ask most — Alabama license law and agency, earnest money and trust accounts, contracts from first contact to closing, property management and rental taxes, and the digital marketing that fills the pipeline. Every article cites the statute, Commission rule or primary source behind it.

Last reviewed August 6, 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 changed in Alabama real estate license law in 2025?
Alabama's 2025 license law updates: written brokerage agreements before listing or offering, dual agency redefined, transaction facilitator replaces transaction broker, team advertising rules, written referral agreements, and a $5,000 maximum fine.
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.
When must an Alabama agent disclose a personal relationship in a deal?
Alabama licensees must give prior timely written disclosure whenever they, an immediate family member, or a business they hold an interest in is a party to a transaction — before the other side becomes contractually bound.
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.
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.
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 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.
Does a seller have to disclose problems with a house in Alabama?
Alabama follows caveat emptor for used residential property, but there are real exceptions: health and safety hazards, direct questions from the buyer, new construction, and federal lead-based paint disclosure.
What has to be in an Alabama offer to purchase?
Every written Alabama offer to purchase must contain an AGENCY DISCLOSURE section identifying each company's role, and the licensee must provide an estimated closing statement before the buyer signs.
Does an Alabama seller have to be shown every offer?
Alabama listing agents must accept delivery of and present all written offers, counteroffers and addenda promptly and truthfully, assist with negotiation, and answer the seller's transaction questions.
What are a broker's duties after an Alabama offer is accepted?
Once an Alabama offer becomes a binding contract the broker's obligations intensify: communicate acceptance, deposit and account for trust funds, review every document, retain records three years, and never induce a party to break the contract.
How should a real estate agent use social media?
A practical framework for real estate social media: personal page versus business page, a four-to-one personal-to-business post ratio, targeted friend lists, and the Alabama advertising rules that apply to every post.
How fast should an agent respond to an online real estate lead?
Online real estate leads reward speed and persistence: a five-minute callback target, at least seven contact attempts over ten to fourteen days, and different handling for registration leads versus direct inquiries.
What makes a good real estate agent website?
A real estate website earns its keep through IDX property search, a registration mechanism, genuinely useful content, consistent blogging and a CRM behind it — not through a nicer headshot.
How do Zillow, Realtor.com and Homes.com work for agents?
How the major real estate portals actually route leads: Zillow's Premier Agent and Showcase tiers, Realtor.com's share-of-voice model, Homes.com's 'your listing, your lead' philosophy, and what Zestimate accuracy really means.
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.
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.
How should a landlord screen tenants without violating fair housing?
Written, objective tenant selection criteria applied identically to every applicant are the core of lawful screening — plus verified rental history, income and credit, and written adverse-action notices under the FCRA.
How do you set rent and handle security deposits on a rental?
Set rent from both your cost of ownership and a comparable-rent analysis, budget around 92 percent of market rent, and follow Alabama's security deposit rules — including the 60-day itemized notice and the double-deposit penalty for missing it.
Which renovations actually add value to a rental property?
The upgrades that pay on a rental are the quick, visible, inexpensive ones — curb appeal, entryways, and matching the features competing rentals offer — plus never showing a unit before it is fully rent-ready.
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.
How many days can you use your own rental property?
A dwelling counts as a home for tax purposes when personal use exceeds the greater of 14 days or 10 percent of days rented at fair rental price — which limits deductions and changes how the property is reported.
How do you report rental income to the IRS?
Most residential rentals are reported on Schedule E, but substantial services push you to Schedule C, and passive activity rules limit losses except for the $25,000 active participation allowance.

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.