Montgomery Alabama Real Estate School

  Broker Pre License Course Section 2

This course is designed to prepare a real estate licensee for the responsibilities involved in performing the duties of a real estate qualifying broker in Alabama, including; legal aspects of brokerage, business administration of a company, knowledge of important documents, training and supervision of agents, and other significant areas of real estate brokerage and management.

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The Broker Pre License Course (2007) has been designed to be taught in 5 Sections for a total of 60 hours.  Each Section link provides specific information on, OBJECTIVES and a DETAILED OUTLINE of the subject matter to be taught.


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SECTION TWO – Broker Administration/Management; Business Planning; Licensee Training & Supervision and Human Resources

Course Objectives are to:
  • Practice ethical leadership
  • Identify the basic elements of planning a business that involves the hiring, training and supervision of both employees and independent contractors
  • Develop a brokerage business plan
  • Implement the basic principles of operating a business including cash flow management,basic record keeping, organizational structure and planning for contingencies
  • Identify specific laws, policies and guidelines for management to follow in regards to employee or licensee hiring, termination, EEO, tax reporting, record keeping, and safety
  • Analyze the educational needs and plan how to organize specific methods of training new licensees, managers, and employees to properly and successfully employ their real estate skills
  • Contrast policies and procedures for working with independent contractors vs. employees
Central Alabama real estate academy

I. Broker Administration and Management (3 hours)

A. Practice ethical leadership of a real estate brokerage
1. Dealing with conflicts of interest in the business
2. Dealing with conflicts of interest in the industry

B. Recognize and avoid illegal and unethical practices
1. Broker and/or salesperson purchasing, selling, managing real property for themselves,
their businesses, their partners, and/or their family members
2. Bonuses and kickbacks
3. Lender fraud
4. Advertising

II. Business Planning (3 hours)

A. Business objectives
1. Scope of services to be offered
2. Organizational needs to meet goals

B. Basic principles of business operation
1. Types of business organizations
2. Basic accounting for business activities
3. Transaction files

C. Marketing plan
1. Sales goals
2. Media and materials
3. Pricing policies

D. Financial plan
1. Initial estimate of capital requirements
2. Operating expense projections
3. Income requirements to break even

E. Action plan
1. Timing
2. Implementation

F. Brokerage staffing needs and methods of recruiting
1. Employees
2. Independent contractors

III. Human Resources (3 hours)

A. Laws that affect Human Resources

B. Recruiting, selecting and hiring licensees
1. New licensee application and selection process
2. Independent contractor agreements

C. Hiring employees
1. Advertising and recruiting
2. Background checks where appropriate
3. Federal and state taxes
4 Required forms and record keeping
5. Hiring of relatives and personal friends
6. Staff who also work directly for independent contractor licensees

D. Recognize and avoid unfair and illegal employment and management practices
1. General federal and state laws
2. Equal Employment Opportunity Commission (EEOC) guidelines
3. Americans with Disabilities Act (ADA)
4. Documentation of performance of licensees and employees
5. Independent contractor agreements
6. Company policy statements and workplace rules

E. Workman’s compensation

F. Termination of employees
1. Voluntary
2. Involuntary

G. Termination of licensees
1. Transfer of license
2. Current business
3. Closing of licensee’s company account

IV. Licensee Training & Supervision (3 hours)

A. Training regarding the law and company policies
1. Brief review of License law, fair housing, ADA, trust funds, environmental laws
2. Advertising
3. Other laws
4. Company policies

B. Training for licensees and employees
1. Orientation programs
2. On-going training in knowledge and techniques
3. Advanced professionalism for licensees and employees

C. Leadership of licensees – “Sales Force Supervision”
1. New licensee training
2. Licensees’ business plans
3. Licensee “coaching”
4. Understanding personalities and communication styles
5. Timing and methods of commission distribution
6. Licensee tax planning and accounting procedures

D. Training licensees to have complete transaction files
1. AREC office audit/inspection requirements
2. Legal issues/lawsuits
3. Relocation services
4. E & O insurance claim documentation

E. Required notifications and reports to AREC
Back to Broker Pre License Course Page
Central Alabama real estate academy
 Central Alabama Real Estate Academy

 was  issued a Private School License by the State of Alabama Post Secondary Education license #1220-1 on May 3, 2004, and granted official approval as a real estate school by the Alabama Real Estate Commission,  school  code #76477 on May 11, 2004.   The first course of instruction,   60 - Hour Pre-License Course, began the first part of June 2004 with continuing education courses being taught throughout the summer of 2004.

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