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Practice Of Real EstateLicense_lawMEDIUM

An Alabama licensee asks about a salesperson wants to perform licensed acts without being under a qualifying broker. What is the best answer?

Correct Answer

B) A salesperson or associate broker may not perform acts requiring a license unless licensed under a qualifying broker

Alabama Code 34-27-34 provides that a salesperson or associate broker shall not perform licensed acts unless licensed under a qualifying broker. Source basis: Alabama Code Section 34-27-32 and 34-27-34, Alabama Administrative Code Chapter 790-X-2, and AREC official law pages: qualifying broker supervision, broker/company/branch licensing, place of business, signage, multiple qualifying-broker roles, and temporary qualifying broker after death or disability. Checked 2026-04-30.

Answer Options
A
The licensee may keep practicing while the missing license-status or education step is pending.
B
A salesperson or associate broker may not perform acts requiring a license unless licensed under a qualifying broker
C
The Alabama requirement can be waived by the salesperson or sponsoring company.
D
The rule is only a national exam concept and is not part of the Alabama state portion.

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Related Topics & Key Terms

Related Topics:

al.IVlicense_law

Key Terms:

alabamaal.IVlicense_lawlicensed-under-qb

Related Concepts

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

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.

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