The first quarter continues to be busy and productive in Alabama real estate—from emerging trends to bills filed with the Alabama Legislature! If you haven’t had a chance to catch up on the latest news, review our update on Alabama REALTORS® bills in the legislature so far this session.
About Alabama REALTOR® Priorities
As the Alabama real estate market undergoes significant changes, the Alabama Association of REALTORS® is promoting three bills to help clarify real estate matters for Alabama consumers and real estate professionals.
From license laws to battling real estate scams, three main Alabama REALTORS® bills are now taking priority. According to news from Alabama REALTORS®, each bill will—or has been—filed separately as they move through the legislature.
Three license law proposals
As we continue with an update on Alabama REALTORS® bills, let’s recap what the three bills propose and the current status. The first bill deals with buyers’ agreements. The second bill will update RECAD and other license laws on several issues, while the third focuses on education and broker license requirements.
Bill One – Buyers Agreements
The first bill introduced, HB 230, clarified the timing of buyer agreements. It protects consumers from being bound by early contracts and emphasizes the importance of discussing brokerage services and compensation upfront while adhering to Alabama’s RECAD structure.
The bill states that buyers in Alabama cannot be made to sign a legally binding agreement to view a home. It does require a written buyer agreement before any purchase offer, ensuring clear representation terms and promoting transparency for consumers and Realtors.
This bill passed the House in the second week, has passed the Senate, and is awaiting Governor Ivey’s signature. It is expected to become law within 30 days of signing. No delays are expected, so AAR anticipates it becoming state law in April.
Bill Two – RECAD and Teams
The second bill outlined updates for RECAD and additional license laws. The main expectations for this bill include dual agency changes, one-year listing agreements, reasonable requirements on teams, failed payments to AREC and definitions and disclosure updates.
Bill Three – Education and Broker License Requirements
The third bill addresses education and broker license requirements, including multiple revisions to the current language, such as grammatical corrections, editing redundant information and similar corrections, nothing substantive.
Furthermore, the bill will allow AREC to approve distance education courses with certain requirements for pre-licensure/post-licensure and CE-only courses, including approving one-hour CE courses.
It also proposes raising the requirements for qualifying brokers. Bill Three mandates that applicants complete a qualifying broker course and hold a license for four years instead of two.
Summary
While this update on Alabama REALTORS® bills provides a brief overview, visit the Alabama REALTORS® Capital News & Notes page for more background, details and future updates from week one through week five, including the next edition on March 25.
Whether you are a consumer or a Realtor, read our blogs for more real estate news, local market statistics and other tips from home buying and selling to owning.