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Alabama real estate licensees are regulated by the:

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Question & Answer

Review the question and all answer choices

A

Alabama Real Estate Board

The 'Alabama Real Estate Board' does not exist as an official regulatory entity in Alabama β€” this is a fabricated name designed to confuse test-takers who may conflate 'board' and 'commission,' terms used interchangeably in other states but not in Alabama.

B

Alabama Real Estate Commission

Correct Answer
C

Alabama Department of Commerce

The Alabama Department of Commerce is a general state agency overseeing broad business and economic development activities and has no specific statutory authority to regulate real estate licensees β€” that responsibility belongs exclusively to AREC.

D

Alabama Real Estate Association

The Alabama Real Estate Association is a professional trade association (similar to a local or state chapter of the National Association of Realtors), which advocates for members and provides education but holds no government regulatory or licensing authority over real estate licensees.

Why is this correct?

The Alabama Real Estate Commission (AREC), established under the Alabama Real Estate License Law (Code of Alabama Β§ 34-27-1 et seq.), is the official state agency responsible for licensing and regulating all real estate licensees in Alabama. AREC has the authority to issue, suspend, and revoke licenses, as well as promulgate rules governing real estate practice in the state. No other body holds this specific statutory authority over Alabama real estate licensees.

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