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Practice Of Real EstateLicense_lawMEDIUM

Under Alabama license law, which of the following individuals is required to hold a real estate license issued by AREC in order to perform their described activity?

Correct Answer

D) A property manager who collects rent and leases units on behalf of the owner for compensation

Under Code of Alabama §34-27-2, any person who performs real estate activities — including leasing, renting, or managing property — for compensation on behalf of another is required to hold an Alabama real estate license. A property manager collecting rent and executing leases for an owner for compensation falls squarely within the licensing requirement.

Answer Options
A
An attorney who negotiates a real estate sale as part of their legal representation of a client
B
A trustee who sells real estate held in a trust as part of their fiduciary duties
C
A homeowner who sells their own primary residence without the assistance of a broker
D
A property manager who collects rent and leases units on behalf of the owner for compensation

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Related Topics & Key Terms

Key Terms:

license_categorieslicensing_requirementexemptionsproperty_management

Related Concepts

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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