Alabama 2024 Regular Session

Alabama House Bill HB13 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB13INTRODUCED
2	2	Page 0
3	3	HB13
4	4	U28MGDG-1
5	5	By Representative Hollis
6	6	RFD: Commerce and Small Business
7	7	First Read: 05-Feb-24
8	8	2024 Regular Session
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14	14	6 U28MGDG-1 10/16/2023 SLU (L)bm 2023-3153
15	15	Page 1
16	16	2024 Regular Session
17	17	SYNOPSIS:
18	18	Under existing law pertaining to licensing real
19	19	estate companies, brokers, and salespersons, there is
20	20	no provision limiting the number of co-brokerage
21	21	agreements a licensed out-of-state broker may enter
22	22	into with state licensed brokers.
23	23	Under existing law, there is no limit on the
24	24	duration of a residential listing agreement.
25	25	Under existing law, there are no specific
26	26	disclosures required of licensees dealing in equitable
27	27	interests in a contract for purchase and sale of
28	28	residential property.
29	29	This bill would provide certain requirements
30	30	pertaining to training, qualifications, licensure, and
31	31	license renewal for licensed real estate companies,
32	32	brokers, salespersons, teams, schools that offer real
33	33	estate training courses, and applicants for licensure.
34	34	This bill would provide certain restrictions on
35	35	transactions between licensed out-of-state co-brokers
36	36	and licensees of this state.
37	37	This bill would provide that the Alabama Real
38	38	Estate Commission may impose penalties for a licensee's
39	39	failure to disclose certain aspects of transactions
40	40	involving the sale or assignment of an equitable
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70	70	involving the sale or assignment of an equitable
71	71	interest in a contract for the purchase and sale of
72	72	residential real estate.
73	73	This bill would further provide that the Alabama
74	74	Real Estate Commission may impose penalties for certain
75	75	conduct by licensees including, but not limited to, the
76	76	failure to specify the expiration date of a residential
77	77	listing agreement or for creating an encumbrance on the
78	78	property that is the subject of a residential listing
79	79	agreement by recording the listing agreement with a
80	80	probate officer.
81	81	This bill would also make nonsubstantive,
82	82	technical revisions to update the existing code
83	83	language to current style.
84	84	A BILL
85	85	TO BE ENTITLED
86	86	AN ACT
87	87	Relating to licensed real estate professionals and
88	88	companies; to amend Sections 34-27-2, 34-27-3, 34-27-6,
89	89	34-27-8, 34-27-32, 34-27-33, 34-27-34, 34-27-35, 34-27-36,
90	90	34-27-81, 34-27-82, 34-27-83, 34-27-84, 34-27-85, and
91	91	34-27-86, Code of Alabama 1975; to add Section 34-27-39; to
92	92	provide certain requirements related to training,
93	93	qualifications and licensure of real estate companies,
94	94	brokers, and salespersons; to provide restrictions on licensed
95	95	out-of-state co-broker transactions in the state; to impose
96	96	penalties for certain licensee conduct including certain
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126	126	penalties for certain licensee conduct including certain
127	127	conduct related to the sale or assignment of an equitable
128	128	interest in a residential purchase and sale agreement and for
129	129	the failure to provide a specified expiration date of a
130	130	residential listing agreement; and to make nonsubstantive,
131	131	technical revisions to update the existing code language to
132	132	current style.
133	133	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
134	134	Section 1. Sections 34-27-2, and 34-27-3, Code of
135	135	Alabama 1975, are amended to read as follows:
136	136	"§34-27-2
137	137	(a) For purposes of Articles 1 and 2 of this chapter,
138	138	the following terms shall have the respective following
139	139	meanings ascribed by this section :
140	140	(1) APARTMENT. A building or complex with more than
141	141	four individual units built primarily for residential leasing
142	142	purposes.
143	143	(1)(2) ASSOCIATE BROKER. Any broker other than a
144	144	qualifying broker.
145	145	(2)(3) BROKER. Any person licensed as a real estate
146	146	broker under Articles 1 and 2 of this chapter.
147	147	(3)(4) COMMISSION. The Alabama Real Estate Commission,
148	148	except where the context requires that it means the fee paid
149	149	to a broker or salesperson.
150	150	(4)(5) COMMISSIONER. A member of the commission.
151	151	(5)(6) COMPANY. Any sole proprietorship, corporation,
152	152	partnership, branch office, or lawfully constituted business
153	153	organization as the Legislature may provide for from time to
154	154	time, which is licensed as a company under Articles 1 and 2 of
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184	184	time, which is licensed as a company under Articles 1 and 2 of
185	185	this chapter.
186	186	(6)(7) ENGAGE. Contractual relationships between a
187	187	qualifying broker and an associate broker or salesperson
188	188	licensed under him or her whether the relationship is
189	189	employer-employee, independent contractor, or otherwise.
190	190	(8) EQUITABLE INTEREST IN A CONTRACT or EQUITABLE
191	191	INTEREST. Any interests or rights in a contract or agreement
192	192	to purchase residential real estate held by a party to the
193	193	contract or agreement.
194	194	(7)(9) INACTIVE LICENSE. A license which is being held
195	195	by the commission office by law, order of the commission, at
196	196	the request of the licensee, or which is renewable but is not
197	197	currently valid because of failure to renew.
198	198	(8)(10) LICENSEE. Any broker, salesperson, or company.
199	199	(9)(11) LICENSE PERIOD. That period of time beginning
200	200	on October 1 of a year designated by the commission to be the
201	201	first year of a license period and ending on midnight
202	202	September 30 of the year designated by the commission as the
203	203	final year of that license period.
204	204	(12) LISTING AGREEMENT. An agreement between a company
205	205	and an owner by which the company agrees to assist the owner
206	206	in the sale of the owner's real property in exchange for a
207	207	fee. The definition includes agreements giving the company the
208	208	right to list or market the owner's real property upon the
209	209	owner's future decision to sell the property.
210	210	(13) OWNER. A person or entity legally deeded real
211	211	property.
212	212	(10)(14) PERSON. A natural person.
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242	242	(10)(14) PERSON. A natural person.
243	243	(11)(15) PLACE OF BUSINESS.
244	244	a. A licensed broker living in a rural area of this
245	245	state who operates from his or her home, provided that he or
246	246	she sets up and maintains an office for the conduct of the
247	247	real estate business, which shall not be used for living
248	248	purposes or occupancy other than the conduct of the real
249	249	estate business. The office shall be used by the broker only
250	250	and not as a place of business from which any additional
251	251	licensee operates under his or her license. The office shall
252	252	have a separate business telephone, separate entrance, and be
253	253	properly identified as a real estate office.
254	254	b. All licensees located within the city limits or
255	255	police jurisdiction of a municipality shall operate from a
256	256	separate office located in the city limits or police
257	257	jurisdiction. The office shall have a business telephone, meet
258	258	all other regulations of the Real Estate Commission, and be
259	259	properly identified as a real estate office. Hardship cases
260	260	may be subject to waiver of this regulation upon application
261	261	and approval by the commission.
262	262	c. All business records and files shall be kept at the
263	263	place of business as required by law or Real Estate Commission
264	264	rules.
265	265	(16) PRINCIPAL BROKER. As used in other states, having
266	266	the same meaning as "qualifying broker" in this state.
267	267	(12)(17) QUALIFYING BROKER. A broker under whom a sole
268	268	proprietorship, corporation, partnership, branch office, or
269	269	lawfully constituted business organization as the Legislature
270	270	may from time to time provide is licensed, or a broker
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300	300	may from time to time provide is licensed, or a broker
301	301	licensed as a company to do business as a sole proprietorship
302	302	who is responsible for supervising the acts of the company or
303	303	proprietorship and all real estate licensees licensed
304	304	therewith.
305	305	(13)(18) RECOVERY FUND. The Alabama Real Estate
306	306	Recovery Fund.
307	307	(19) RESIDENTIAL. Pertaining to real property located
308	308	in the state which is used primarily for personal, family, or
309	309	household purposes.
310	310	(14)(20) SALESPERSON. Any person licensed as a real
311	311	estate salesperson under Articles 1 and 2 of this chapter.
312	312	(21) TEAM. Licensees within the same company who group
313	313	together to share consumers, resources, knowledge, or
314	314	commissions.
315	315	(b) The licensing requirements of Articles 1 and 2 of
316	316	this chapter shall not apply to any of the following persons
317	317	and transactions:
318	318	(1) Any owner in the managing of, or in consummating a
319	319	real estate transaction involving, his or her own real estate
320	320	or the real estate of his or her spouse or child or parent.
321	321	(2) An attorney-at-law performing his or her duties as
322	322	an attorney-at-law.
323	323	(3) Persons acting without compensation and in good
324	324	faith under a duly executed power of attorney authorizing the
325	325	consummation of a real estate transaction.
326	326	(4) Persons or a state or federally chartered financial
327	327	institution acting as a receiver, trustee, administrator,
328	328	executor, or guardian; or acting under a court order or under
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358	358	executor, or guardian; or acting under a court order or under
359	359	authority of a trust instrument or will.
360	360	(5) Public officers performing their official duties.
361	361	(6) Persons performing general clerical or
362	362	administrative duties for a broker so long as the person does
363	363	not physically show listed property.
364	364	(7) Persons acting as the manager for an apartment
365	365	building or complex. However, this exception shall not apply
366	366	to a person acting as an on-site manager of a condominium
367	367	building or complex.
368	368	(8) Persons licensed as time-share sellers under
369	369	Article 3 of this chapter performing an act consistent with
370	370	that article.
371	371	(9) Transactions involving the sale, lease, or transfer
372	372	of cemetery lots."
373	373	"§34-27-3
374	374	(a) A licensed principal broker of another state may
375	375	act as co-broker , whether in sales or lease transactions, with
376	376	a licensed qualifying broker of this state by executing a
377	377	written agreement specifying each parcel of property covered
378	378	by the agreement if the state in which the nonresident broker
379	379	is licensed offers the same privileges to licensees of this
380	380	state. Co-brokerage agreements are limited to three
381	381	transactions per calendar year, per licensed out-of-state
382	382	principal broker. Transactions may include multiple properties
383	383	if the properties are part of the same portfolio. No licensed
384	384	out-of-state principal broker shall use co-brokerage
385	385	agreements to engage in transactions totaling more than fifty
386	386	million dollars ($50,000,000) in any one calendar year.
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416	416	million dollars ($50,000,000) in any one calendar year.
417	417	(b) Whenever an Alabama qualifying broker enters into a
418	418	co-brokerage agreement with a nonresidentlicensed out-of-state
419	419	principal broker to perform in Alabama any of the acts
420	420	described in Section 34-27-30 , the Alabama qualifying broker
421	421	shall file within 10 days with the commission a copy of each
422	422	such written agreement not more than 10 days after the
423	423	agreement is signed by all parties . By signing the agreement,
424	424	the nonresidentlicensed out-of-state principal broker agrees
425	425	to abide by Alabama law, and the rules and regulations of the
426	426	commission; and further agrees that civil actions may be
427	427	commenced against him or her in any court of competent
428	428	jurisdiction in any county of this state in which a claim may
429	429	arise.
430	430	(c) All co-brokerage agreements with licensed
431	431	out-of-state co-brokers shall include all of the following
432	432	provisions:
433	433	(1) The Alabama broker shall require a listing or joint
434	434	listing of the property involved.
435	435	(2) The agreement shall specify all material terms,
436	436	including, but not limited to, the financial terms.
437	437	(3) The showing of property located in Alabama and any
438	438	negotiations pertaining to it shall be supervised by the
439	439	Alabama broker.
440	440	(4) The name of the Alabama broker shall appear in all
441	441	advertising of real property located in the state.
442	442	(5) The Alabama broker shall be liable for all acts of
443	443	the licensed out-of-state broker, as well as his or her own
444	444	acts, arising from the execution of the co-brokerage
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474	474	acts, arising from the execution of the co-brokerage
475	475	agreement.
476	476	(6) The Alabama broker shall verify that the licensed
477	477	out-of-state broker is a licensed principal broker in another
478	478	state.
479	479	(7) Any earnest money deposited pursuant to the
480	480	agreement must be held in escrow by the Alabama broker unless
481	481	both the buyer and the seller agree in writing to relieve the
482	482	Alabama broker of this responsibility. "
483	483	Section 2. Section 34-27-6, Code of Alabama 1975, is
484	484	amended to read as follows:
485	485	"§34-27-6
486	486	(a) For purposes of this section and rules adopted
487	487	pursuant thereto, the following terms shall have the following
488	488	meanings:
489	489	(1) ACCREDITED SCHOOL. Any nonprofit college or
490	490	university meeting the standards of an accrediting agency
491	491	recognized by the U.S. Department of Education and offering
492	492	any commission-approved course.
493	493	(1)(2) ADMINISTRATOR. A person designated by a
494	494	principal school or branch school licensed by the commission
495	495	and approved by the commission to be the person responsible to
496	496	the commission for all acts governed by this chapter and
497	497	applicable rules which govern the operation of schools.
498	498	(2)(3) APPROVED COURSE. Any course of instruction
499	499	approved by the commission that satisfies commission
500	500	requirements for prelicense education, postlicense education,
501	501	or continuing education.
502	502	(3) APPROVED SCHOOL. Any proprietary educational
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532	532	(3) APPROVED SCHOOL. Any proprietary educational
533	533	institution offering only commission approved continuing
534	534	education courses and any accredited college or university
535	535	that offers any commission approved course.
536	536	(4) BRANCH SCHOOL. Any school under the ownership of a
537	537	principal school which offers commission approved courses at a
538	538	permanent location.
539	539	(5) CE-ONLY SCHOOL. Any private educational institution
540	540	or organization offering only commission-approved continuing
541	541	education courses.
542	542	(6) CONTINUING EDUCATION. Any professional course
543	543	required to renew or activate a license which shall be a
544	544	minimum of one hour upon approval of the commission.
545	545	(7) DISTANCE EDUCATION. Programs whereby instruction
546	546	does not take place in a traditional classroom setting but
547	547	rather where teacher and student are apart by distance or by
548	548	time and instruction takes place through other media.
549	549	(5)(8) INSTRUCTIONAL SITE. Any physical place where
550	550	commission-approved instruction is conducted apart from the
551	551	principal school or branch school.
552	552	(6)(9) INSTRUCTOR. A person approvedlicensed by the
553	553	commission to teach approved courses in the classroom or by
554	554	distance education.
555	555	(7)(10)LICENSEDPRELICENSE SCHOOL. Any proprietary
556	556	school that is licensed by the commission and bonded,
557	557	including any for-profit college, that offers commission -
558	558	approved prelicense courses or postlicense courses, or both,
559	559	only after being licensed and bonded by the commission .
560	560	Prelicense schools may also offer continuing education
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590	590	Prelicense schools may also offer continuing education
591	591	courses.
592	592	(8)(11) PRINCIPAL SCHOOL. Any institution or
593	593	organization which is the primary school and not a branch
594	594	school that is approved and is licensed by the commission.
595	595	(9) PROPRIETARY SCHOOL. Any school that is not an
596	596	accredited college or university and which offers commission
597	597	approved prelicense courses or postlicense courses, or both,
598	598	only after being licensed and bonded by the commission. Each
599	599	branch school shall be licensed separately.
600	600	(b) The commission shall approve and regulate schools
601	601	that offer commission approved prelicense, postlicense, and
602	602	continuing education courses. The commission shall be the
603	603	board, commission, or agency with have the sole and exclusive
604	604	authority to license proprietaryand regulate schools and their
605	605	branches for the limited purpose of their offerings of
606	606	commission approved prelicense courses or postlicense courses,
607	607	or boththat offer commission-approved prelicense and
608	608	continuing education courses .
609	609	(c)(1) The commission shall require proprietary require
610	610	prelicense principal schools to furnishobtain a surety bond
611	611	issued by a surety company authorized to do business in
612	612	Alabama, payable to the commission in the amount of an amount
613	613	not to exceed twenty thousand dollars ($20,000) with a surety
614	614	company authorized to do business in Alabama, which bond shall
615	615	provide. The bond shall provide that the bond obligor therein
616	616	shall pay up toan amount not to exceed twenty thousand dollars
617	617	($20,000) in the aggregate sum of all judgments which shall be
618	618	recovered against the school for damages arising from the
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648	648	recovered against the school for damages arising from the
649	649	school's collection of tuition or fees, or both, from
650	650	students, but failing to provide the complete instruction for
651	651	which suchthe tuition or fees were collected.
652	652	(2) The bond shall be obtained by the school and shall
653	653	also cover any branch schools named in the bond or any
654	654	endorsement or amendment of or to the bond.
655	655	(3) The bond shall remain in effect as long as the
656	656	school is licensed. In the event the bond is revoked or
657	657	cancelledcanceled by the surety company, the school shall have
658	658	10 days after cancellation or revocation to obtain a new bond
659	659	and file it the bond with the commission. Failure to maintain
660	660	a bond shall result in the immediate suspension of the
661	661	licenses of the school and all of its branches.
662	662	The bond shall be provided by the school and shall also
663	663	cover any branch schools named in the bond or any endorsement
664	664	or amendment thereto.
665	665	(d)(1) The commission shall charge a license fee for
666	666	each licensedprelicense principal school and shall charge a
667	667	fee for each branch school in the amount of two hundred fifty
668	668	dollars ($250) per year for each year or portion of a year
669	669	remaining in the respective license period. The renewal fee
670	670	for each school licenseprelicenseprincipal and branch school
671	671	shall be one hundred twenty-five dollars ($125) for each year
672	672	of the license period.
673	673	(2) The commission shall charge a license fee for each
674	674	CE-only school in the amount of one hundred dollars ($100) per
675	675	year for each year or remaining portion of a year in any
676	676	license period. The renewal fee for each CE-only school shall
677	677	309
678	678	310
679	679	311
680	680	312
681	681	313
682	682	314
683	683	315
684	684	316
685	685	317
686	686	318
687	687	319
688	688	320
689	689	321
690	690	322
691	691	323
692	692	324
693	693	325
694	694	326
695	695	327
696	696	328
697	697	329
698	698	330
699	699	331
700	700	332
701	701	333
702	702	334
703	703	335
704	704	336 HB13 INTRODUCED
705	705	Page 13
706	706	license period. The renewal fee for each CE-only school shall
707	707	be fifty dollars ($50) for each year of any license period.
708	708	(e)(1) The commission shall require all schools to name
709	709	and have approvedlicensed by the commission a n school
710	710	administrator who shall be responsible to the commission for
711	711	all actions of his or her respective school.
712	712	(2) Each administrator shall pay a license fee in the
713	713	amount of one hundred dollars ($100) per year for each year or
714	714	remaining portion of a year of any license period. The renewal
715	715	fee for each administrator shall be fifty dollars ($50) for
716	716	each year of the license period.
717	717	(f) PrincipalEach schoolsand branch school shall be
718	718	clearly identified by signage which shall indicate the name of
719	719	the schoolas in a manner appropriate for theits location. The
720	720	signage shall set out the name of the principal school. Branch
721	721	schools shall be clearly identified by signage as appropriate
722	722	for the location. The signageFor branch schools the signage
723	723	shall set out the name of the branch school and the name of
724	724	the principal school.
725	725	(g) The commission shall have the authority to may
726	726	reprimand, fine, suspend for a period up to two years, or
727	727	revoke the license or approval of any school, administrator,
728	728	or instructor for any violation of this section or any rule of
729	729	the commission. The fine shall be not less than one hundred
730	730	dollars ($100) nor moregreater than two thousand five hundred
731	731	dollars ($2,500) five thousand dollars ($5,000) per
732	732	countviolation.
733	733	(h) The commission shall approve, sponsor, contract for
734	734	or conduct, or assist in sponsoring or conducting , real estate
735	735	337
736	736	338
737	737	339
738	738	340
739	739	341
740	740	342
741	741	343
742	742	344
743	743	345
744	744	346
745	745	347
746	746	348
747	747	349
748	748	350
749	749	351
750	750	352
751	751	353
752	752	354
753	753	355
754	754	356
755	755	357
756	756	358
757	757	359
758	758	360
759	759	361
760	760	362
761	761	363
762	762	364 HB13 INTRODUCED
763	763	Page 14
764	764	or conduct, or assist in sponsoring or conducting , real estate
765	765	courses for licensees, may charge fees, and may incur and pay
766	766	the necessary related expenses in connection therewith .
767	767	(i)(1) The commission shall approvelicense and regulate
768	768	instructors who teach the commission -approved prelicense ,
769	769	postlicense, and continuing education courses. The commission
770	770	shall establish and collect fees as determined necessary , from
771	771	licensed instructors who teach commission-approved courses, in
772	772	an amount not to exceed fifty dollars ($50) per instructor
773	773	annually, to approved instructors who teach commission
774	774	approved courses .
775	775	(2) The commission shall establish a continuing
776	776	education requirement for all active prelicense instructors.
777	777	(j)(1) An instructor, administrator, or school may
778	778	request that the commission issue or change its license to
779	779	inactive status. An instructor, administrator, or school
780	780	licensee whose license status is inactive shall be prohibited
781	781	from engaging in any of the following:
782	782	a. Teaching commission-approved courses if the licensee
783	783	is an instructor.
784	784	b. Offering commission-approved courses if the licensee
785	785	is a school.
786	786	c. Performing any duties of an administrator if the
787	787	licensee is an administrator, including, but not limited to,
788	788	registering students, advertising the school, reporting course
789	789	schedules to the commission, or entering student credit for
790	790	completed courses.
791	791	(2) The inactive license of an instructor,
792	792	administrator, or school must be renewed in the same manner as
793	793	365
794	794	366
795	795	367
796	796	368
797	797	369
798	798	370
799	799	371
800	800	372
801	801	373
802	802	374
803	803	375
804	804	376
805	805	377
806	806	378
807	807	379
808	808	380
809	809	381
810	810	382
811	811	383
812	812	384
813	813	385
814	814	386
815	815	387
816	816	388
817	817	389
818	818	390
819	819	391
820	820	392 HB13 INTRODUCED
821	821	Page 15
822	822	administrator, or school must be renewed in the same manner as
823	823	an active license for an instructor, administrator, or school.
824	824	(3) A prelicense instructor whose license status is
825	825	inactive for three years or less and who renews his or her
826	826	license while its status is inactive may activate his or her
827	827	license for the first time during any license period by
828	828	meeting both of the following requirements:
829	829	a. Completing any continuing education requirement for
830	830	licensed instructors that remains incomplete from the previous
831	831	license period.
832	832	b. Paying a license activation fee.
833	833	c. If the license remains inactive for longer than
834	834	three years, the prelicense instructor must take required
835	835	training before activating his or her license. Once the
836	836	license is activated, a prelicense instructor will be
837	837	responsible for completing the then current continuing
838	838	education coursework requirement to renew the active license
839	839	for the next license period.
840	840	(4) In addition to any other requirements provided in
841	841	this section, any instructor, administrator, or a school which
842	842	is seeking to change its license status from inactive to
843	843	active shall be required to pay a license activation fee in
844	844	the amount of fifty dollars ($50) per license.
845	845	(k) An active prelicense instructor with an inactive
846	846	broker license must remain current with continuing education
847	847	requirements for active brokers as well as the continuing
848	848	education requirements for active prelicense instructors.
849	849	(l)(1) All education licenses and approvals shall
850	850	expire at midnight on September 30 of the final year of each
851	851	393
852	852	394
853	853	395
854	854	396
855	855	397
856	856	398
857	857	399
858	858	400
859	859	401
860	860	402
861	861	403
862	862	404
863	863	405
864	864	406
865	865	407
866	866	408
867	867	409
868	868	410
869	869	411
870	870	412
871	871	413
872	872	414
873	873	415
874	874	416
875	875	417
876	876	418
877	877	419
878	878	420 HB13 INTRODUCED
879	879	Page 16
880	880	expire at midnight on September 30 of the final year of each
881	881	license period. Each prelicense instructor must complete
882	882	required continuing education courses and provide proof of
883	883	completion to the commission on or before September 30 of the
884	884	final year of each license period.
885	885	(2) The continuing education coursework requirement
886	886	shall apply to each two-year education renewal. Coursework
887	887	hours completed in excess of the requirement shall not be
888	888	applicable to any subsequent renewal.
889	889	(3) An inactive status license of a prelicense
890	890	instructor shall be renewed in the same manner as for an
891	891	active prelicense instructor except that continuing education
892	892	coursework shall not be required while the license remains
893	893	inactive.
894	894	(m) Any prelicense instructor, administrator, or school
895	895	that fails to renew its license by the September 30 deadline
896	896	shall incur a late fee in the amount of two hundred dollars
897	897	($200) per license as of October 1 of the first year of the
898	898	new license period.
899	899	(n)(1) A prelicense instructor, administrator, or
900	900	school may renew an expired license during the twelve-month
901	901	period following the September 30 renewal deadline, provided
902	902	that the licensee shall not engage in any licensed activity
903	903	until the license is renewed.
904	904	(2) After the last day of the twelfth month following
905	905	the September 30 renewal deadline, an expired license shall
906	906	lapse and shall be subject to all requirements applicable to
907	907	an original license.
908	908	(3) The commission may allow late renewal of a lapsed
909	909	421
910	910	422
911	911	423
912	912	424
913	913	425
914	914	426
915	915	427
916	916	428
917	917	429
918	918	430
919	919	431
920	920	432
921	921	433
922	922	434
923	923	435
924	924	436
925	925	437
926	926	438
927	927	439
928	928	440
929	929	441
930	930	442
931	931	443
932	932	444
933	933	445
934	934	446
935	935	447
936	936	448 HB13 INTRODUCED
937	937	Page 17
938	938	(3) The commission may allow late renewal of a lapsed
939	939	license upon a determination of hardship, provided that all
940	940	required fees are paid.
941	941	(j)(o)(1) The commission shall approve courses and
942	942	establish and collect fees as determineddeemed necessary, not
943	943	to exceed one hundred dollars ($100) per application, to
944	944	review each course.
945	945	(2) a. The commission may certify synchronous distance
946	946	education courses, and establish and collect fees deemed
947	947	necessary, in an amount not to exceed four hundred dollars
948	948	($400) per application.
949	949	b. The commission shall consider synchronous distance
950	950	education courses for certification based on the commission's
951	951	analysis of all of the following aspects of the course of
952	952	which it is part:
953	953	1. The course or program mission statement.
954	954	2. Course design.
955	955	3. Interactivity.
956	956	4. Delivery.
957	957	5. Equipment.
958	958	6. The learning environment.
959	959	7. Student support services.
960	960	8. Educational effectiveness and assessment of student
961	961	learning outcomes.
962	962	9. Commitment to ongoing support of the course.
963	963	(k)(p) The commission shall establish one-year or
964	964	multi-year approvallicense periods for schools, instructors,
965	965	administrators, and courses. Approval and license License
966	966	periods shall run from October 1 of the first year of the
967	967	449
968	968	450
969	969	451
970	970	452
971	971	453
972	972	454
973	973	455
974	974	456
975	975	457
976	976	458
977	977	459
978	978	460
979	979	461
980	980	462
981	981	463
982	982	464
983	983	465
984	984	466
985	985	467
986	986	468
987	987	469
988	988	470
989	989	471
990	990	472
991	991	473
992	992	474
993	993	475
994	994	476 HB13 INTRODUCED
995	995	Page 18
996	996	periods shall run from October 1 of the first year of the
997	997	approvallicense period through September 30 of the final year
998	998	of the approvallicense period.
999	999	(l)(q) The commission shall promulgateadopt rules and
1000	1000	regulations as necessary to accomplish the purpose of this
1001	1001	section in accordance with the Administrative Procedure Act."
1002	1002	Section 3. Section 34-27-8, Code of Alabama 1975, is
1003	1003	amended to read as follows:
1004	1004	"§34-27-8
1005	1005	(a) A majority of the commission members shall
1006	1006	constitute a quorum for the conduct of commission business.
1007	1007	The commission may adopt and enforce all rules and regulations
1008	1008	pursuant to the state administrative procedure statutes
1009	1009	necessary for the administration of this chapter, and to
1010	1010	otherwise do all things necessary and convenient for effecting
1011	1011	this chapter.
1012	1012	(b) In addition to the powers granted in this section,
1013	1013	the commission may adopt and enforce rules and regulations
1014	1014	governing the requirements of agency disclosure by licensed
1015	1015	brokers and salespersons.
1016	1016	(c) Each offer to purchase prepared after August 1,
1017	1017	1998, shall have prominently displayed the following AGENCY
1018	1018	DISCLOSURE clause which shall be completed and initialed as
1019	1019	indicated:
1020	1020	The listing company _________ is:
1021	1021	(Two blocks may be checked)
1022	1022	____ An agent of the seller.
1023	1023	____ An agent of the buyer.
1024	1024	____ An agent of both the seller and buyer and is
1025	1025	477
1026	1026	478
1027	1027	479
1028	1028	480
1029	1029	481
1030	1030	482
1031	1031	483
1032	1032	484
1033	1033	485
1034	1034	486
1035	1035	487
1036	1036	488
1037	1037	489
1038	1038	490
1039	1039	491
1040	1040	492
1041	1041	493
1042	1042	494
1043	1043	495
1044	1044	496
1045	1045	497
1046	1046	498
1047	1047	499
1048	1048	500
1049	1049	501
1050	1050	502
1051	1051	503
1052	1052	504 HB13 INTRODUCED
1053	1053	Page 19
1054	1054	____ An agent of both the seller and buyer and is
1055	1055	acting as a limited consensual dual agent.
1056	1056	____ Assisting the _____ buyer _____ seller as a
1057	1057	transaction broker.
1058	1058	The selling company _________ is:
1059	1059	(Two blocks may be checked)
1060	1060	____ An agent of the seller.
1061	1061	____ An agent of the buyer.
1062	1062	____ An agent of both the seller and buyer and is
1063	1063	acting as a limited consensual dual agent.
1064	1064	____ Assisting the _____ buyer _____ seller as a
1065	1065	transaction broker. "
1066	1066	Section 4. Section 34-27-32, Code of Alabama 1975, is
1067	1067	amended to read as follows:
1068	1068	"§34-27-32
1069	1069	(a) A license for a broker or a salesperson shall be
1070	1070	registered to a specific real estate office and shall be
1071	1071	issued only to, and held only by, a person who meets all of
1072	1072	the following requirements:
1073	1073	(1) Is trustworthy and competent to transact the
1074	1074	business of a broker or salesperson in a manner that
1075	1075	safeguards the interest of the public.
1076	1076	(2) Is a person whose application for real estate
1077	1077	licensure has not been rejected in any state on any grounds
1078	1078	other than failure to pass a written examination within the
1079	1079	two years prior to the application for real estate licensure
1080	1080	with Alabama. If the applicant's rejection for real estate
1081	1081	licensure in any state is more than two years from the date of
1082	1082	application for licensure with Alabama, then the applicant may
1083	1083	505
1084	1084	506
1085	1085	507
1086	1086	508
1087	1087	509
1088	1088	510
1089	1089	511
1090	1090	512
1091	1091	513
1092	1092	514
1093	1093	515
1094	1094	516
1095	1095	517
1096	1096	518
1097	1097	519
1098	1098	520
1099	1099	521
1100	1100	522
1101	1101	523
1102	1102	524
1103	1103	525
1104	1104	526
1105	1105	527
1106	1106	528
1107	1107	529
1108	1108	530
1109	1109	531
1110	1110	532 HB13 INTRODUCED
1111	1111	Page 20
1112	1112	application for licensure with Alabama, then the applicant may
1113	1113	not be issued an Alabama real estate license without the
1114	1114	approval of the commissioners.
1115	1115	(3) Is a person whose real estate license has not been
1116	1116	revoked in any state within the two years prior to application
1117	1117	for real estate licensure with Alabama. If the applicant's
1118	1118	real estate licensure revocation in any state, including
1119	1119	Alabama, is more than two years from the date of application
1120	1120	for licensure with Alabama then the applicant may not be
1121	1121	issued an Alabama real estate license without the approval of
1122	1122	the commissioners.
1123	1123	(4) Is at least 19 years oldof age.
1124	1124	(5) Is a citizen of the United States or, if not a
1125	1125	citizen of the United States, a person who is legally present
1126	1126	in the United States with appropriate documentation from the
1127	1127	federal government, or is an alien with permanent resident
1128	1128	status.
1129	1129	(6) Is a person who, if a nonresident, agrees to sign
1130	1130	an affidavit stating the following and in the following form:
1131	1131	"I, as a nonresident applicant for a real estate
1132	1132	license and as a licensee, agree that the Alabama Real Estate
1133	1133	Commission shall have jurisdiction over me in any and all of
1134	1134	my real estate related activities the same as if I were an
1135	1135	Alabama resident licensee. I agree to be subject to
1136	1136	investigations and disciplinary actions the same as Alabama
1137	1137	resident licensees. Further, I agree that civil actions may be
1138	1138	commenced against me in any court of competent jurisdiction in
1139	1139	any county of the State of Alabama.
1140	1140	"I hereby appoint the Executive Director or the
1141	1141	533
1142	1142	534
1143	1143	535
1144	1144	536
1145	1145	537
1146	1146	538
1147	1147	539
1148	1148	540
1149	1149	541
1150	1150	542
1151	1151	543
1152	1152	544
1153	1153	545
1154	1154	546
1155	1155	547
1156	1156	548
1157	1157	549
1158	1158	550
1159	1159	551
1160	1160	552
1161	1161	553
1162	1162	554
1163	1163	555
1164	1164	556
1165	1165	557
1166	1166	558
1167	1167	559
1168	1168	560 HB13 INTRODUCED
1169	1169	Page 21
1170	1170	"I hereby appoint the Executive Director or the
1171	1171	Assistant Executive Director of the Alabama Real Estate
1172	1172	Commission as my agent upon whom all disciplinary, judicial,
1173	1173	or other process or legal notices may be served. I agree that
1174	1174	any service upon my agent shall be the same as service upon me
1175	1175	and that certified copies of this appointment shall be deemed
1176	1176	sufficient evidence and shall be admitted into evidence with
1177	1177	the same force and effect as the original might be admitted. I
1178	1178	agree that any lawful process against me which is served upon
1179	1179	my agent shall be of the same legal force and validity as if
1180	1180	personally served upon me and that this appointment shall
1181	1181	continue in effect for as long as I have any liability
1182	1182	remaining in the State of Alabama. I understand that my agent
1183	1183	shall, within a reasonable time after service upon him or her,
1184	1184	mail a copy of the service by certified mail, return receipt
1185	1185	requested, to me at my last known business address.
1186	1186	"I agree that I am bound by all the provisions of the
1187	1187	Alabama Real Estate License Law the same as if I were a
1188	1188	resident of the State of Alabama.
1189	1189	___________________Legal Signature of Applicant"
1190	1190	The commission may reject the application of any person
1191	1191	who has been convicted of or pleaded guilty or nolo contendere
1192	1192	to a felony or a crime involving moral turpitude.
1193	1193	(b)(1)a. A person who holds a current real estate
1194	1194	salesperson license in another state, including persons who
1195	1195	move to and become residents of Alabama, shall apply for a
1196	1196	reciprocal salesperson license on a form prescribed by the
1197	1197	commission. A person who holds a current broker license in
1198	1198	another state, including persons who move to and become
1199	1199	561
1200	1200	562
1201	1201	563
1202	1202	564
1203	1203	565
1204	1204	566
1205	1205	567
1206	1206	568
1207	1207	569
1208	1208	570
1209	1209	571
1210	1210	572
1211	1211	573
1212	1212	574
1213	1213	575
1214	1214	576
1215	1215	577
1216	1216	578
1217	1217	579
1218	1218	580
1219	1219	581
1220	1220	582
1221	1221	583
1222	1222	584
1223	1223	585
1224	1224	586
1225	1225	587
1226	1226	588 HB13 INTRODUCED
1227	1227	Page 22
1228	1228	another state, including persons who move to and become
1229	1229	residents of Alabama, shall apply for a reciprocal broker
1230	1230	license on a form prescribed by the commission .
1231	1231	b. The applicant shall submit proof that he or she has
1232	1232	a current real estate license in another state as evidenced by
1233	1233	a certificate of licensure, together with any other
1234	1234	information required by the commission. The applicant shall
1235	1235	also show proof that he or she has completed at least six
1236	1236	hours of course work in Alabama real estate which is approved
1237	1237	by the commission. Applicants for a reciprocal license shall
1238	1238	not be subject to the complete examination or temporary
1239	1239	license requirements of Section 34-27-33, but shall pass a
1240	1240	reasonable written examination prepared by the commission on
1241	1241	the subject of Alabama real estate. A person who holds a
1242	1242	reciprocal license shall show proof of completion of
1243	1243	continuing education either by meeting the requirements of
1244	1244	Section 34-27-35 or by showing proof that his or her other
1245	1245	state license remains active in that state.
1246	1246	c. The fees for issuance and renewal of a reciprocal
1247	1247	license shall be the same as those for original licenses
1248	1248	pursuant to Section 34-27-35. The recovery fund fee for
1249	1249	issuance of a reciprocal license shall be the same as for an
1250	1250	original license pursuant to Section 34-27-31.
1251	1251	(2) A person who holds a current Alabama license who
1252	1252	moves to and becomes a resident of the state shall within 10
1253	1253	days submit to the commission notice of change of address and
1254	1254	all other license status changes.
1255	1255	(c) A person who does not hold a current real estate
1256	1256	broker license in another state desiring to be a real estate
1257	1257	589
1258	1258	590
1259	1259	591
1260	1260	592
1261	1261	593
1262	1262	594
1263	1263	595
1264	1264	596
1265	1265	597
1266	1266	598
1267	1267	599
1268	1268	600
1269	1269	601
1270	1270	602
1271	1271	603
1272	1272	604
1273	1273	605
1274	1274	606
1275	1275	607
1276	1276	608
1277	1277	609
1278	1278	610
1279	1279	611
1280	1280	612
1281	1281	613
1282	1282	614
1283	1283	615
1284	1284	616 HB13 INTRODUCED
1285	1285	Page 23
1286	1286	broker license in another state desiring to be a real estate
1287	1287	broker in this state shall apply for a broker'sbroker license
1288	1288	on a form prescribed by the commission which shall specify the
1289	1289	real estate office to which he or she is registered. Along
1290	1290	with the application, he or she shall submit all of the
1291	1291	following:
1292	1292	(1) Proof that he or she has had an active real estate
1293	1293	salesperson'ssalesperson license in any state for at least 24
1294	1294	months of the 36-month period immediately preceding the date
1295	1295	of application.
1296	1296	(2) Proof that he or she is a high school graduate or
1297	1297	the equivalent.
1298	1298	(3) Proof that he or she has completed a course in real
1299	1299	estate approved by the commission, which shall be a minimum of
1300	1300	60 clock hours.
1301	1301	(4) Any other information requested by the commission.
1302	1302	(d) A person who does not hold a current real estate
1303	1303	salesperson license in another state desiring to be a real
1304	1304	estate salesperson in this state shall apply for a
1305	1305	salesperson'ssalesperson license with the commission on a form
1306	1306	prescribed by the commission which shall specify the real
1307	1307	estate office to which he or she is registered. Along with the
1308	1308	application he or she shall furnish all of the following:
1309	1309	(1) Proof that he or she is a high school graduate or
1310	1310	the equivalent.
1311	1311	(2) Proof that he or she has successfully completed a
1312	1312	course in real estate approved by the commission, which shall
1313	1313	be a minimum of 60 clock hours.
1314	1314	(3) Any other information required by the commission.
1315	1315	617
1316	1316	618
1317	1317	619
1318	1318	620
1319	1319	621
1320	1320	622
1321	1321	623
1322	1322	624
1323	1323	625
1324	1324	626
1325	1325	627
1326	1326	628
1327	1327	629
1328	1328	630
1329	1329	631
1330	1330	632
1331	1331	633
1332	1332	634
1333	1333	635
1334	1334	636
1335	1335	637
1336	1336	638
1337	1337	639
1338	1338	640
1339	1339	641
1340	1340	642
1341	1341	643
1342	1342	644 HB13 INTRODUCED
1343	1343	Page 24
1344	1344	(3) Any other information required by the commission.
1345	1345	(e) An application for a company license or branch
1346	1346	office license shall be made by a qualifying broker on a form
1347	1347	prescribed by the commission. The qualifying broker shall be
1348	1348	an officer, partner, or employee of the company.
1349	1349	(f) An applicant for a company or broker license shall
1350	1350	maintain a place of business.
1351	1351	(g) If the applicant for a company or broker license
1352	1352	maintains more than one place of business in the state, he or
1353	1353	she shall have a company or branch office license for each
1354	1354	separate location or branch office. Every application shall
1355	1355	state the location of the company or branch office and the
1356	1356	name of its qualifying broker. Each company or branch office
1357	1357	shall be under the direction and supervision of a qualifying
1358	1358	broker licensed at that address. No person may serve as
1359	1359	qualifying broker at more than one location. The qualifying
1360	1360	broker for the branch office and the qualifying broker for the
1361	1361	company shall share equal responsibility for the real estate
1362	1362	activities of all licensees assigned to the branch office or
1363	1363	company.
1364	1364	(h)(1) No person shall be a qualifying broker for more
1365	1365	than one company or for a company and on his or her own behalf
1366	1366	unless he or she meets all of the following requirements :
1367	1367	(1)a. All companies for which he or she is and proposes
1368	1368	to be the qualifying broker consent in writing.
1369	1369	(2)b. He or she files a copy of the written consent
1370	1370	with the commission.
1371	1371	c. All companies for which he or she is and proposes to
1372	1372	be the qualifying broker share the same company address (3) He
1373	1373	645
1374	1374	646
1375	1375	647
1376	1376	648
1377	1377	649
1378	1378	650
1379	1379	651
1380	1380	652
1381	1381	653
1382	1382	654
1383	1383	655
1384	1384	656
1385	1385	657
1386	1386	658
1387	1387	659
1388	1388	660
1389	1389	661
1390	1390	662
1391	1391	663
1392	1392	664
1393	1393	665
1394	1394	666
1395	1395	667
1396	1396	668
1397	1397	669
1398	1398	670
1399	1399	671
1400	1400	672 HB13 INTRODUCED
1401	1401	Page 25
1402	1402	be the qualifying broker share the same company address (3) He
1403	1403	or she will be doing business from the same location .
1404	1404	(2) A person licensed under a qualifying broker may be
1405	1405	engaged by one or more companies with the same qualifying
1406	1406	broker.
1407	1407	(3) A person may utilize any office of a company under
1408	1408	which he or she is licensed.
1409	1409	(i) A company license shall become invalid on the death
1410	1410	or disability of a qualifying broker. Within 30 days after the
1411	1411	death or disability, the corporation, or the remaining
1412	1412	partners or the successor partnership, if any, may designate
1413	1413	another of its officers, members, or salespersons to apply for
1414	1414	a license as temporary qualifying broker. The person
1415	1415	designated as temporary qualifying broker shall either be a
1416	1416	broker or have been a salesperson for at least one year prior
1417	1417	to filing the application. If the application is granted, the
1418	1418	company may operate under that temporary qualifying broker for
1419	1419	no more than six months after the death or disability of its
1420	1420	former qualifying broker temporary qualifying broker license is
1421	1421	issued. Unless the company designates a fully licensed broker
1422	1422	as the qualifying broker within the six months, the company
1423	1423	license and all licenses under the company shall be classified
1424	1424	inactive by the commission.
1425	1425	(j) The commission shall require both state and
1426	1426	national criminal history background checks to issue a
1427	1427	license. Applicants shall submit required information and
1428	1428	fingerprints to the commission, Federal Bureau of
1429	1429	Investigation, Alabama State Law Enforcement Agency, or its
1430	1430	successor, or to a fingerprint processing service that may be
1431	1431	673
1432	1432	674
1433	1433	675
1434	1434	676
1435	1435	677
1436	1436	678
1437	1437	679
1438	1438	680
1439	1439	681
1440	1440	682
1441	1441	683
1442	1442	684
1443	1443	685
1444	1444	686
1445	1445	687
1446	1446	688
1447	1447	689
1448	1448	690
1449	1449	691
1450	1450	692
1451	1451	693
1452	1452	694
1453	1453	695
1454	1454	696
1455	1455	697
1456	1456	698
1457	1457	699
1458	1458	700 HB13 INTRODUCED
1459	1459	Page 26
1460	1460	successor, or to a fingerprint processing service that may be
1461	1461	selected by the commission for this purpose. Criminal history
1462	1462	record information shall be provided to the commission from
1463	1463	both the State of Alabama and the Federal Bureau of
1464	1464	Investigation. The commission can use the provided criminal
1465	1465	history for the determination of the qualifications and
1466	1466	fitness of the applicant to hold a real estate license. The
1467	1467	applicant shall assume the cost of the criminal history check.
1468	1468	The criminal history mustshall be current to the issuance of
1469	1469	the license.
1470	1470	(k) The commission may charge a fee of ten dollars
1471	1471	($10) for furnishing any person a copy of a license,
1472	1472	certificate, or other official record of the commissioner."
1473	1473	Section 5. Section 34-27-32, Code of Alabama 1975, is
1474	1474	amended to read as follows:
1475	1475	"§34-27-32
1476	1476	(a) A license for a broker or a salesperson shall be
1477	1477	registered to a specific real estate office and shall be
1478	1478	issued only to, and held only by, a person who meets all of
1479	1479	the following requirements:
1480	1480	(1) Is trustworthy and competent to transact the
1481	1481	business of a broker or salesperson in a manner that
1482	1482	safeguards the interest of the public.
1483	1483	(2) Is a person whose application for real estate
1484	1484	licensure has not been rejected in any state on any grounds
1485	1485	other than failure to pass a written examination within the
1486	1486	two years prior to the application for real estate licensure
1487	1487	with Alabama. If the applicant's rejection for real estate
1488	1488	licensure in any state is more than two years from the date of
1489	1489	701
1490	1490	702
1491	1491	703
1492	1492	704
1493	1493	705
1494	1494	706
1495	1495	707
1496	1496	708
1497	1497	709
1498	1498	710
1499	1499	711
1500	1500	712
1501	1501	713
1502	1502	714
1503	1503	715
1504	1504	716
1505	1505	717
1506	1506	718
1507	1507	719
1508	1508	720
1509	1509	721
1510	1510	722
1511	1511	723
1512	1512	724
1513	1513	725
1514	1514	726
1515	1515	727
1516	1516	728 HB13 INTRODUCED
1517	1517	Page 27
1518	1518	licensure in any state is more than two years from the date of
1519	1519	application for licensure with Alabama, then the applicant may
1520	1520	not be issued an Alabama real estate license without the
1521	1521	approval of the commissioners.
1522	1522	(3) Is a person whose real estate license has not been
1523	1523	revoked in any state within the two years prior to application
1524	1524	for real estate licensure with Alabama. If the applicant's
1525	1525	real estate licensure revocation in any state, including
1526	1526	Alabama, is more than two years from the date of application
1527	1527	for licensure with Alabama then the applicant may not be
1528	1528	issued an Alabama real estate license without the approval of
1529	1529	the commissioners.
1530	1530	(4) Is at least 19 years oldof age.
1531	1531	(5) Is a citizen of the United States or, if not a
1532	1532	citizen of the United States, a person who is legally present
1533	1533	in the United States with appropriate documentation from the
1534	1534	federal government, or is an alien with permanent resident
1535	1535	status.
1536	1536	(6) Is a person who, if a nonresident, agrees to sign
1537	1537	an affidavit stating the following and in the following form:
1538	1538	"I, as a nonresident applicant for a real estate
1539	1539	license and as a licensee, agree that the Alabama Real Estate
1540	1540	Commission shall have jurisdiction over me in any and all of
1541	1541	my real estate related activities the same as if I were an
1542	1542	Alabama resident licensee. I agree to be subject to
1543	1543	investigations and disciplinary actions the same as Alabama
1544	1544	resident licensees. Further, I agree that civil actions may be
1545	1545	commenced against me in any court of competent jurisdiction in
1546	1546	any county of the State of Alabama.
1547	1547	729
1548	1548	730
1549	1549	731
1550	1550	732
1551	1551	733
1552	1552	734
1553	1553	735
1554	1554	736
1555	1555	737
1556	1556	738
1557	1557	739
1558	1558	740
1559	1559	741
1560	1560	742
1561	1561	743
1562	1562	744
1563	1563	745
1564	1564	746
1565	1565	747
1566	1566	748
1567	1567	749
1568	1568	750
1569	1569	751
1570	1570	752
1571	1571	753
1572	1572	754
1573	1573	755
1574	1574	756 HB13 INTRODUCED
1575	1575	Page 28
1576	1576	any county of the State of Alabama.
1577	1577	"I hereby appoint the Executive Director or the
1578	1578	Assistant Executive Director of the Alabama Real Estate
1579	1579	Commission as my agent upon whom all disciplinary, judicial,
1580	1580	or other process or legal notices may be served. I agree that
1581	1581	any service upon my agent shall be the same as service upon me
1582	1582	and that certified copies of this appointment shall be deemed
1583	1583	sufficient evidence and shall be admitted into evidence with
1584	1584	the same force and effect as the original might be admitted. I
1585	1585	agree that any lawful process against me which is served upon
1586	1586	my agent shall be of the same legal force and validity as if
1587	1587	personally served upon me and that this appointment shall
1588	1588	continue in effect for as long as I have any liability
1589	1589	remaining in the State of Alabama. I understand that my agent
1590	1590	shall, within a reasonable time after service upon him or her,
1591	1591	mail a copy of the service by certified mail, return receipt
1592	1592	requested, to me at my last known business address.
1593	1593	"I agree that I am bound by all the provisions of the
1594	1594	Alabama Real Estate License Law the same as if I were a
1595	1595	resident of the State of Alabama.
1596	1596	___________________Legal Signature of Applicant"
1597	1597	The commission may reject the application of any person
1598	1598	who has been convicted of or pleaded guilty or nolo contendere
1599	1599	to a felony or a crime involving moral turpitude.
1600	1600	(b)(1)a. A person who holds a current real estate
1601	1601	salesperson license in another state, including persons who
1602	1602	move to and become residents of Alabama, shall apply for a
1603	1603	reciprocal salesperson license on a form prescribed by the
1604	1604	commission. A person who holds a current broker license in
1605	1605	757
1606	1606	758
1607	1607	759
1608	1608	760
1609	1609	761
1610	1610	762
1611	1611	763
1612	1612	764
1613	1613	765
1614	1614	766
1615	1615	767
1616	1616	768
1617	1617	769
1618	1618	770
1619	1619	771
1620	1620	772
1621	1621	773
1622	1622	774
1623	1623	775
1624	1624	776
1625	1625	777
1626	1626	778
1627	1627	779
1628	1628	780
1629	1629	781
1630	1630	782
1631	1631	783
1632	1632	784 HB13 INTRODUCED
1633	1633	Page 29
1634	1634	commission. A person who holds a current broker license in
1635	1635	another state, including persons who move to and become
1636	1636	residents of Alabama, shall apply for a reciprocal broker
1637	1637	license on a form prescribed by the commission .
1638	1638	b. The applicant shall submit proof that he or she has
1639	1639	a current real estate license in another state as evidenced by
1640	1640	a certificate of licensure, together with any other
1641	1641	information required by the commission. The applicant shall
1642	1642	also show proof that he or she has completed at least six
1643	1643	hours of course work in Alabama real estate which is approved
1644	1644	by the commission. Applicants for a reciprocal license shall
1645	1645	not be subject to the complete examination or temporary
1646	1646	license requirements of Section 34-27-33, but shall pass a
1647	1647	reasonable written examination prepared by the commission on
1648	1648	the subject of Alabama real estate. A person who holds a
1649	1649	reciprocal license shall show proof of completion of
1650	1650	continuing education either by meeting the requirements of
1651	1651	Section 34-27-35 or by showing proof that his or her other
1652	1652	state license remains active in that state.
1653	1653	c. The fees for issuance and renewal of a reciprocal
1654	1654	license shall be the same as those for original licenses
1655	1655	pursuant to Section 34-27-35. The recovery fund fee for
1656	1656	issuance of a reciprocal license shall be the same as for an
1657	1657	original license pursuant to Section 34-27-31.
1658	1658	(2) A person who holds a current Alabama license who
1659	1659	moves to and becomes a resident of the state shall within 10
1660	1660	days submit to the commission notice of change of address and
1661	1661	all other license status changes.
1662	1662	(c) A person who does not hold a current real estate
1663	1663	785
1664	1664	786
1665	1665	787
1666	1666	788
1667	1667	789
1668	1668	790
1669	1669	791
1670	1670	792
1671	1671	793
1672	1672	794
1673	1673	795
1674	1674	796
1675	1675	797
1676	1676	798
1677	1677	799
1678	1678	800
1679	1679	801
1680	1680	802
1681	1681	803
1682	1682	804
1683	1683	805
1684	1684	806
1685	1685	807
1686	1686	808
1687	1687	809
1688	1688	810
1689	1689	811
1690	1690	812 HB13 INTRODUCED
1691	1691	Page 30
1692	1692	(c) A person who does not hold a current real estate
1693	1693	broker license in another state desiring to be a real estate
1694	1694	broker in this state shall apply for a broker'sbroker license
1695	1695	on a form prescribed by the commission which shall specify the
1696	1696	real estate office to which he or she is registered . Along
1697	1697	with the application, he or she shall submit all of the
1698	1698	following:
1699	1699	(1) Proof that he or she has had an active real estate
1700	1700	salesperson'ssalesperson license in any state for at least 24
1701	1701	months of the 36-month period immediately preceding the date
1702	1702	of application.
1703	1703	(2) Proof that he or she is a high school graduate or
1704	1704	the equivalent.
1705	1705	(3) Proof that he or she has completed a course in real
1706	1706	estate approved by the commission, which shall be a minimum of
1707	1707	60 clock hours.met all of the following requirements:
1708	1708	a. Successfully completed a course in broker basics
1709	1709	approved by the commission.
1710	1710	b. Passed a license examination within 90 days after
1711	1711	completion of the broker basics course.
1712	1712	c. Within 90 days after passing the license
1713	1713	examination, successfully completed a course in professional
1714	1714	development approved by the commission.
1715	1715	(4) Any other information requested by the commission.
1716	1716	(d) A person who does not hold a current real estate
1717	1717	salesperson license in another state desiring to be a real
1718	1718	estate salesperson in this state shall apply for a
1719	1719	salesperson'ssalesperson license with the commission on a form
1720	1720	prescribed by the commission which shall specify the real
1721	1721	813
1722	1722	814
1723	1723	815
1724	1724	816
1725	1725	817
1726	1726	818
1727	1727	819
1728	1728	820
1729	1729	821
1730	1730	822
1731	1731	823
1732	1732	824
1733	1733	825
1734	1734	826
1735	1735	827
1736	1736	828
1737	1737	829
1738	1738	830
1739	1739	831
1740	1740	832
1741	1741	833
1742	1742	834
1743	1743	835
1744	1744	836
1745	1745	837
1746	1746	838
1747	1747	839
1748	1748	840 HB13 INTRODUCED
1749	1749	Page 31
1750	1750	prescribed by the commission which shall specify the real
1751	1751	estate office to which he or she is registered . Along with the
1752	1752	application he or she shall furnishprovide all of the
1753	1753	following:
1754	1754	(1) Proof that he or she is a high school graduate or
1755	1755	the equivalent.
1756	1756	(2) Proof that he or she has successfully completed a
1757	1757	course in real estate approved by the commission, which shall
1758	1758	be a minimum of 60 clock hours. met all of the following
1759	1759	requirements:
1760	1760	a. Successfully completed a salesperson basics course
1761	1761	approved by the commission.
1762	1762	b. Passed a license examination within 90 days after
1763	1763	completing the salesperson basics course.
1764	1764	c. Within 90 days after passing the license
1765	1765	examination, successfully completed a course approved by the
1766	1766	commission in salesperson professional development.
1767	1767	(3) The name of the applicant's qualifying broker,
1768	1768	along with the information required pursuant to Section
1769	1769	34-27-33.
1770	1770	(3)(4) Any other information required by the
1771	1771	commission.
1772	1772	(e) An application for a company license or branch
1773	1773	office license shall be made by a qualifying broker on a form
1774	1774	prescribed by the commission. The qualifying broker shall be
1775	1775	an officer, partner, or employee of the company.
1776	1776	(f) An applicant for a company or broker license shall
1777	1777	maintain a place of business.
1778	1778	(g) If the applicant for a company or broker license
1779	1779	841
1780	1780	842
1781	1781	843
1782	1782	844
1783	1783	845
1784	1784	846
1785	1785	847
1786	1786	848
1787	1787	849
1788	1788	850
1789	1789	851
1790	1790	852
1791	1791	853
1792	1792	854
1793	1793	855
1794	1794	856
1795	1795	857
1796	1796	858
1797	1797	859
1798	1798	860
1799	1799	861
1800	1800	862
1801	1801	863
1802	1802	864
1803	1803	865
1804	1804	866
1805	1805	867
1806	1806	868 HB13 INTRODUCED
1807	1807	Page 32
1808	1808	(g) If the applicant for a company or broker license
1809	1809	maintains more than one place of business in the state, he or
1810	1810	she shall have a company or branch office license for each
1811	1811	separate location or branch office. Every application shall
1812	1812	state the location of the company or branch office and the
1813	1813	name of its qualifying broker. Each company or branch office
1814	1814	shall be under the direction and supervision of a qualifying
1815	1815	broker licensed at that address. No person may serve as
1816	1816	qualifying broker at more than one location. The qualifying
1817	1817	broker for the branch office and the qualifying broker for the
1818	1818	company shall share equal responsibility for the real estate
1819	1819	activities of all licensees assigned to the branch office or
1820	1820	company.
1821	1821	(h)(1) No person shall be a qualifying broker for more
1822	1822	than one company or for a company and on his or her own behalf
1823	1823	unless he or she meets all of the following requirements :
1824	1824	(1)a. All companies for which he or she is and proposes
1825	1825	to be the qualifying broker consent in writing.
1826	1826	(2)b. He or she files a copy of the written consent
1827	1827	with the commission.
1828	1828	(3) He or she will be doing business from the same
1829	1829	locationc. All companies for which he or she is and proposes
1830	1830	to be the qualifying broker share the same company address .
1831	1831	(2) A person licensed under a qualifying broker may be
1832	1832	engaged by one or more companies with the same qualifying
1833	1833	broker.
1834	1834	(3) A person may utilize any office of a company under
1835	1835	which he or she is licensed.
1836	1836	(i) A company license shall become invalid on the death
1837	1837	869
1838	1838	870
1839	1839	871
1840	1840	872
1841	1841	873
1842	1842	874
1843	1843	875
1844	1844	876
1845	1845	877
1846	1846	878
1847	1847	879
1848	1848	880
1849	1849	881
1850	1850	882
1851	1851	883
1852	1852	884
1853	1853	885
1854	1854	886
1855	1855	887
1856	1856	888
1857	1857	889
1858	1858	890
1859	1859	891
1860	1860	892
1861	1861	893
1862	1862	894
1863	1863	895
1864	1864	896 HB13 INTRODUCED
1865	1865	Page 33
1866	1866	(i) A company license shall become invalid on the death
1867	1867	or disability of a qualifying broker. Within 30 days after the
1868	1868	death or disability, the corporation, or the remaining
1869	1869	partners or the successor partnership, if any, may designate
1870	1870	another of its officers, members, or salespersons to apply for
1871	1871	a license as temporary qualifying broker. The person
1872	1872	designated as temporary qualifying broker shall either be a
1873	1873	broker or have been a salesperson for at least one year prior
1874	1874	to filing the application. If the application is granted, the
1875	1875	company may operate under that temporary qualifying broker for
1876	1876	no more than six months after the death or disability of its
1877	1877	former qualifying broker temporary qualifying broker license is
1878	1878	issued. Unless the company designates a fully licensed broker
1879	1879	as the qualifying broker within the six months, the company
1880	1880	license and all licenses under the company shall be classified
1881	1881	inactive by the commission.
1882	1882	(j) The commission shall require both state and
1883	1883	national criminal history background checks to issue a
1884	1884	license. Applicants shall submit required information and
1885	1885	fingerprints to the commission, Federal Bureau of
1886	1886	Investigation, Alabama State Law Enforcement Agency, or its
1887	1887	successor, or to a fingerprint processing service that may be
1888	1888	selected by the commission for this purpose. Criminal history
1889	1889	record information shall be provided to the commission from
1890	1890	both the State of Alabama and the Federal Bureau of
1891	1891	Investigation. The commission can use the provided criminal
1892	1892	history for the determination of the qualifications and
1893	1893	fitness of the applicant to hold a real estate license. The
1894	1894	applicant shall assume the cost of the criminal history check.
1895	1895	897
1896	1896	898
1897	1897	899
1898	1898	900
1899	1899	901
1900	1900	902
1901	1901	903
1902	1902	904
1903	1903	905
1904	1904	906
1905	1905	907
1906	1906	908
1907	1907	909
1908	1908	910
1909	1909	911
1910	1910	912
1911	1911	913
1912	1912	914
1913	1913	915
1914	1914	916
1915	1915	917
1916	1916	918
1917	1917	919
1918	1918	920
1919	1919	921
1920	1920	922
1921	1921	923
1922	1922	924 HB13 INTRODUCED
1923	1923	Page 34
1924	1924	applicant shall assume the cost of the criminal history check.
1925	1925	The criminal history mustshall be current to the issuance of
1926	1926	the license.
1927	1927	(k) The commission may charge a fee of ten dollars
1928	1928	($10) for furnishing any person a copy of a license,
1929	1929	certificate, or other official record of the commissioner."
1930	1930	Section 6. Section 34-27-33, Code of Alabama 1975, is
1931	1931	amended to read as follows:
1932	1932	"§34-27-33
1933	1933	(a)(1) In addition to other requirements of this
1934	1934	chapterPursuant to Section 34-27-32 , every applicant for a
1935	1935	broker'sbroker or salesperson'ssalesperson license shall
1936	1936	submit to a reasonable written examination. The commission
1937	1937	shall conduct examinations at places and times it prescribes.
1938	1938	The commission may contract with an independent testing agency
1939	1939	to prepare, grade, or conduct the examination.
1940	1940	(2) Effective October 1, 2001, and thereafter, the The
1941	1941	fee for each examination and the provisions for payment and
1942	1942	forfeiture shall be as specified in the contract with the
1943	1943	independent testing agency.
1944	1944	(b)(1) Within 90 days after passing the examination,
1945	1945	the applicant shall complete a professional development course
1946	1946	approved by the commission, meet all of the requirements of
1947	1947	this chapter, and secure a qualifying broker . and meet all
1948	1948	requirements of this chapter and the board shall Upon the
1949	1949	applicant doing so, the commission shall issue a temporary an
1950	1950	active license or classify the license as inactive.
1951	1951	(2) In order to obtain an active license, the
1952	1952	applicant's qualifying broker shall acknowledge sign and
1953	1953	925
1954	1954	926
1955	1955	927
1956	1956	928
1957	1957	929
1958	1958	930
1959	1959	931
1960	1960	932
1961	1961	933
1962	1962	934
1963	1963	935
1964	1964	936
1965	1965	937
1966	1966	938
1967	1967	939
1968	1968	940
1969	1969	941
1970	1970	942
1971	1971	943
1972	1972	944
1973	1973	945
1974	1974	946
1975	1975	947
1976	1976	948
1977	1977	949
1978	1978	950
1979	1979	951
1980	1980	952 HB13 INTRODUCED
1981	1981	Page 35
1982	1982	applicant's qualifying broker shall acknowledge sign and
1983	1983	submit to the commission a sworn statement that the applicant
1984	1984	is in his or her opinion honest, trustworthy, and of good
1985	1985	reputation, and that the broker accepts responsibility for the
1986	1986	actions of the salesperson as set out in Section 34-27-31. The
1987	1987	applicant's qualifying broker shall be licensed inhold an
1988	1988	active Alabama license.
1989	1989	(c)(1) On passing the examination and complying with
1990	1990	all other conditions for licensure, a temporary license
1991	1991	certificate shall be issued to the applicant. The applicant is
1992	1992	not licensed until he or she or his or her qualifying broker
1993	1993	actually receives the temporary license certificate. A
1994	1994	temporary license shall be valid only for a period of one year
1995	1995	following the first day of the month after its issuance .
1996	1996	(2)a. The holder of a temporary license shall not be
1997	1997	issued an original license until he or she has satisfactorily
1998	1998	completed a 30-hour post-license course prescribed by the
1999	1999	commissionsubmits to the commission both of the following:
2000	2000	1. Proof of successful completion of a 15-hour
2001	2001	orientation as prescribed by the commission, in the
2002	2002	applicant's real estate practice area.
2003	2003	2. A complete core competencies checklist on a form
2004	2004	prescribed by the commission and signed by the applicant's
2005	2005	qualifying broker .
2006	2006	b. If the The holder of a temporary license must
2007	2007	complete the course fails to complete and submit the
2008	2008	application for an original license with required
2009	2009	documentation within six months90 daysofafter issuance of his
2010	2010	or her temporary license ,and have his or her original license
2011	2011	953
2012	2012	954
2013	2013	955
2014	2014	956
2015	2015	957
2016	2016	958
2017	2017	959
2018	2018	960
2019	2019	961
2020	2020	962
2021	2021	963
2022	2022	964
2023	2023	965
2024	2024	966
2025	2025	967
2026	2026	968
2027	2027	969
2028	2028	970
2029	2029	971
2030	2030	972
2031	2031	973
2032	2032	974
2033	2033	975
2034	2034	976
2035	2035	977
2036	2036	978
2037	2037	979
2038	2038	980 HB13 INTRODUCED
2039	2039	Page 36
2040	2040	or her temporary license ,and have his or her original license
2041	2041	issued, otherwise his or her temporary license certificate
2042	2042	shall automatically be placed on inactive status by the
2043	2043	commission. During the remaining six months his or her
2044	2044	temporary license is valid, the holder of a temporary license
2045	2045	may complete the course and have his or her original license
2046	2046	issued. If the holder of a temporary license does not complete
2047	2047	the course and have his or her original license issued within
2048	2048	one year following the first day of the month after its
2049	2049	issuance, the temporary license shall automatically expire and
2050	2050	lapse. A temporary license is not subject to renewal
2051	2051	procedures in this chapter and may not be renewed.
2052	2052	(3) An inactive temporary license must be renewed at
2053	2053	the proper time if an original license has not been issued. If
2054	2054	a temporary license remains inactive for more than three
2055	2055	years, the licensee must retake the salesperson professional
2056	2056	development course prior to activating the license.
2057	2057	(3)(4) In order to have the status of an inactive a
2058	2058	temporary license issuedchanged to active status, the
2059	2059	applicant shall pay the Recovery Fund fee specified in this
2060	2060	chapter. The holder of a temporary license shall, upon
2061	2061	satisfactory completion of the course, pay the original
2062	2062	license fee specified in this chapter to have his or her
2063	2063	original license issued. An applicant for an original license
2064	2064	who has paid the Recovery Fund fee specified in this chapter
2065	2065	shall not be required to pay another Recovery Fund fee in
2066	2066	order to have his or her original license issued.
2067	2067	(4) The holder of an original license who has
2068	2068	satisfactorily completed the postlicense course and whose
2069	2069	981
2070	2070	982
2071	2071	983
2072	2072	984
2073	2073	985
2074	2074	986
2075	2075	987
2076	2076	988
2077	2077	989
2078	2078	990
2079	2079	991
2080	2080	992
2081	2081	993
2082	2082	994
2083	2083	995
2084	2084	996
2085	2085	997
2086	2086	998
2087	2087	999
2088	2088	1000
2089	2089	1001
2090	2090	1002
2091	2091	1003
2092	2092	1004
2093	2093	1005
2094	2094	1006
2095	2095	1007
2096	2096	1008 HB13 INTRODUCED
2097	2097	Page 37
2098	2098	satisfactorily completed the postlicense course and whose
2099	2099	original license has been issued, shall not be subject to the
2100	2100	continuing education requirements in this chapter for the
2101	2101	first renewal of his or her original license.
2102	2102	(d) This section shall become effective for licenses
2103	2103	issued beginning October 1, 1993. "
2104	2104	Section 7. Section 34-27-34, Code of Alabama 1975, is
2105	2105	amended to read as follows:
2106	2106	"§34-27-34
2107	2107	(a)(1) A broker may serve as qualifying broker for a
2108	2108	salesperson or associate broker only if licensed in Alabama,
2109	2109	his or her principal business is that of a real estate broker,
2110	2110	and he or she shall be in a position to actually supervise the
2111	2111	real estate activities of the associate broker or salesperson
2112	2112	on a full-time basis A person concurrently licensed as a broker
2113	2113	in another state who has reciprocally obtained a broker
2114	2114	license in this state may serve as a qualifying broker over a
2115	2115	salesperson or associate broker if he or she meets all of the
2116	2116	following requirements:
2117	2117	a. Real estate is his or her principal business.
2118	2118	b. He or she is in a position to actually supervise the
2119	2119	real estate activities of the associate broker or salesperson
2120	2120	on a full-time basis.
2121	2121	c. He or she has held an active broker license for at
2122	2122	least 24 of the last 36 months.
2123	2123	(2) A person licensed as a broker in this state who is
2124	2124	not currently licensed as a broker in another state may serve
2125	2125	as qualifying broker over a salesperson or associate broker if
2126	2126	he or she meets all of the following requirements:
2127	2127	1009
2128	2128	1010
2129	2129	1011
2130	2130	1012
2131	2131	1013
2132	2132	1014
2133	2133	1015
2134	2134	1016
2135	2135	1017
2136	2136	1018
2137	2137	1019
2138	2138	1020
2139	2139	1021
2140	2140	1022
2141	2141	1023
2142	2142	1024
2143	2143	1025
2144	2144	1026
2145	2145	1027
2146	2146	1028
2147	2147	1029
2148	2148	1030
2149	2149	1031
2150	2150	1032
2151	2151	1033
2152	2152	1034
2153	2153	1035
2154	2154	1036 HB13 INTRODUCED
2155	2155	Page 38
2156	2156	he or she meets all of the following requirements:
2157	2157	a. Real estate is his or her principal business.
2158	2158	b. He or she is in a position to actually supervise the
2159	2159	real estate activities of the associate broker or salesperson
2160	2160	on a full-time basis.
2161	2161	c. He or she has held an active broker license for at
2162	2162	least 24 of the last 36 months.
2163	2163	d. He or she has attended a qualifying broker training
2164	2164	course provided by the commission .
2165	2165	(2)(3)a. A salesperson or associate broker shall not
2166	2166	perform acts for which a license is required unless licensed
2167	2167	under a qualifying broker.
2168	2168	b. A qualifying broker shall be held responsible to the
2169	2169	commission and to the public for all acts governed by this
2170	2170	chapter of each salesperson and associate broker licensed
2171	2171	under him or her and of each company for which he or she is
2172	2172	the qualifying broker. It shall be the duty of the qualifying
2173	2173	broker to see that all transactions of every licensee engaged
2174	2174	by him or her or any company for which he or she is the
2175	2175	qualifying broker comply with this chapter.
2176	2176	c. A Additionally, the qualifying broker shall be
2177	2177	responsible to an injured party for the damage caused by any
2178	2178	violation of this chapter by any licensee engaged by the
2179	2179	qualifying broker. This subsection does not relieve a licensee
2180	2180	from liability that he or she would otherwise have.
2181	2181	(3)d. The qualifying brokers'broker's supervision
2182	2182	responsibilities, as prescribed herein, over the real estate
2183	2183	activities of associate brokers and salespersons licensed
2184	2184	under him or her are not intended to create, and should not be
2185	2185	1037
2186	2186	1038
2187	2187	1039
2188	2188	1040
2189	2189	1041
2190	2190	1042
2191	2191	1043
2192	2192	1044
2193	2193	1045
2194	2194	1046
2195	2195	1047
2196	2196	1048
2197	2197	1049
2198	2198	1050
2199	2199	1051
2200	2200	1052
2201	2201	1053
2202	2202	1054
2203	2203	1055
2204	2204	1056
2205	2205	1057
2206	2206	1058
2207	2207	1059
2208	2208	1060
2209	2209	1061
2210	2210	1062
2211	2211	1063
2212	2212	1064 HB13 INTRODUCED
2213	2213	Page 39
2214	2214	under him or her are not intended to create, and should not be
2215	2215	construed as creating , an employer-employee relationship
2216	2216	contrary to any expressed intent of the qualifying broker and
2217	2217	licensee to the contrary.
2218	2218	(b)(1) Any salesperson or associate broker who desires
2219	2219	to change his or her qualifying broker shall give notice in
2220	2220	writing to the commission, and shall send a copy of the notice
2221	2221	to his or her qualifying broker. The new qualifying broker
2222	2222	shall file with the commission a request for the transfer and
2223	2223	a statement assuming liability for the licensee. In order to
2224	2224	transfer a license, the applicant's new qualifying broker
2225	2225	shall acknowledge to the commission that in his or her opinion
2226	2226	the applicant is honest, trustworthy, of good reputation, and
2227	2227	that the broker accepts responsibility for the actions of the
2228	2228	salesperson under Section 34-27-31.
2229	2229	(2) On payment of a fee of twenty-five dollars ($25), a
2230	2230	new license certificate shall be issued to the new qualifying
2231	2231	broker on behalf of the salesperson or associate broker for
2232	2232	the unexpired term of the original license. A fee of
2233	2233	twenty-five dollars ($25) shall also be charged for any of the
2234	2234	following license changes:
2235	2235	(1)a. Change of qualifying broker by a company or sole
2236	2236	proprietorship. The fee isshall be paid for theeach license or
2237	2237	licenses on which the current and new qualifying brokers'
2238	2238	names appear. In cases where a company has a branch office or
2239	2239	offices and the main office qualifying broker is changed, the
2240	2240	fee is paid for each branch office license and for the license
2241	2241	of each branch qualifying broker. This change must be made
2242	2242	within 30 days of the name change.
2243	2243	1065
2244	2244	1066
2245	2245	1067
2246	2246	1068
2247	2247	1069
2248	2248	1070
2249	2249	1071
2250	2250	1072
2251	2251	1073
2252	2252	1074
2253	2253	1075
2254	2254	1076
2255	2255	1077
2256	2256	1078
2257	2257	1079
2258	2258	1080
2259	2259	1081
2260	2260	1082
2261	2261	1083
2262	2262	1084
2263	2263	1085
2264	2264	1086
2265	2265	1087
2266	2266	1088
2267	2267	1089
2268	2268	1090
2269	2269	1091
2270	2270	1092 HB13 INTRODUCED
2271	2271	Page 40
2272	2272	within 30 days of the name change.
2273	2273	(2)b. Change of personal name of a qualifying broker.
2274	2274	Within 30 days following name change, the The fee isshall be
2275	2275	paid for the license or licenses on which the current
2276	2276	qualifying broker's name appears.
2277	2277	(3)c. Change of personal name of a salesperson or
2278	2278	associate broker. Within 30 days after the name change, the
2279	2279	The fee isshall be paid for the license on which the name
2280	2280	appears.
2281	2281	(4)d. Change of business location. The fee is paid for
2282	2282	the license or licenses on which the address appears.
2283	2283	(5)e. Change of business name. The fee is paid for the
2284	2284	license or licenses on which the name appears.
2285	2285	(6)f. Change of license status from inactive to active.
2286	2286	The fee is paid for each license being changed from inactive
2287	2287	to active status. No fee is charged for the change from active
2288	2288	to inactive status.
2289	2289	(c) A personqualifying broker who wishes to terminate
2290	2290	his or her status as qualifying broker responsibility for a
2291	2291	licensee may do so by notifying the licensee and the
2292	2292	commission in writing and sending the licensee's license
2293	2293	certificate to the commission or verifying in writing to the
2294	2294	commission that the certificate has been lost or destroyed
2295	2295	placing the licensee's license on inactive status with the
2296	2296	commission.
2297	2297	(d) A personAn individual who wishes to terminate his
2298	2298	or her status as a qualifying broker for a company may do so
2299	2299	by submitting written notice to the company or qualifying
2300	2300	brokerofficers of the parent company and the commission.
2301	2301	1093
2302	2302	1094
2303	2303	1095
2304	2304	1096
2305	2305	1097
2306	2306	1098
2307	2307	1099
2308	2308	1100
2309	2309	1101
2310	2310	1102
2311	2311	1103
2312	2312	1104
2313	2313	1105
2314	2314	1106
2315	2315	1107
2316	2316	1108
2317	2317	1109
2318	2318	1110
2319	2319	1111
2320	2320	1112
2321	2321	1113
2322	2322	1114
2323	2323	1115
2324	2324	1116
2325	2325	1117
2326	2326	1118
2327	2327	1119
2328	2328	1120 HB13 INTRODUCED
2329	2329	Page 41
2330	2330	brokerofficers of the parent company and the commission.
2331	2331	(e) A salesperson or associate broker shall not perform
2332	2332	any act for which a license is required after his or her
2333	2333	association with his or her qualifying broker has been
2334	2334	terminated, or if he or she changes qualifying brokers, until
2335	2335	a new active license has been issued by the commission."
2336	2336	Section 8. Section 34-27-35, Code of Alabama 1975, is
2337	2337	amended to read as follows:
2338	2338	"§34-27-35
2339	2339	(a) The commission shall prescribe the form and content
2340	2340	of license certificates issued. Each qualifying broker's
2341	2341	license certificate shall show the name and business address
2342	2342	of the broker. The license certificate of each active
2343	2343	salesperson or associate broker shall show his or her name and
2344	2344	address. The license certificate of each active salesperson or
2345	2345	associate broker shall be delivered or mailed to his or her
2346	2346	qualifying broker. Each license certificate shall be kept by
2347	2347	the qualifying broker and shall be publicly displayed at the
2348	2348	address which appears on the license certificate.
2349	2349	(b) The commission may establish a one-year or
2350	2350	multi-year license period.
2351	2351	(c)(1) The fee for a temporary license shall be one
2352	2352	hundred fifty dollars ($150). The original fee for a
2353	2353	broker'sbroker license shall be one hundred fifty dollars
2354	2354	($150).and, beginning with the license period effective
2355	2355	October 1, 2002, the The renewal fee for a broker'sbroker
2356	2356	license shall be seventy-five dollars ($75) per year for each
2357	2357	year of the license period. The original fee for each
2358	2358	salesperson'ssalesperson license shall be sixty-five dollars
2359	2359	1121
2360	2360	1122
2361	2361	1123
2362	2362	1124
2363	2363	1125
2364	2364	1126
2365	2365	1127
2366	2366	1128
2367	2367	1129
2368	2368	1130
2369	2369	1131
2370	2370	1132
2371	2371	1133
2372	2372	1134
2373	2373	1135
2374	2374	1136
2375	2375	1137
2376	2376	1138
2377	2377	1139
2378	2378	1140
2379	2379	1141
2380	2380	1142
2381	2381	1143
2382	2382	1144
2383	2383	1145
2384	2384	1146
2385	2385	1147
2386	2386	1148 HB13 INTRODUCED
2387	2387	Page 42
2388	2388	salesperson'ssalesperson license shall be sixty-five dollars
2389	2389	($65) per year for each year or portion of a year remaining in
2390	2390	the respective license period, and the renewal fee for each
2391	2391	salesperson'ssalesperson license shall be sixty-five dollars
2392	2392	($65) per year for each year of the license period. The
2393	2393	original fee for each company license shall be sixty-five
2394	2394	dollars ($65) per year for each year or portion of a year
2395	2395	remaining in the respective license period, and the renewal
2396	2396	fee for each license shall be sixty-five dollars ($65) per
2397	2397	year for each year of the license period.
2398	2398	(2) Beginning with the license period effective October
2399	2399	1, 2004, theThe renewal fee for a broker'sbroker license shall
2400	2400	be ninety-five dollars ($95) per year for each year of the
2401	2401	license period. The original fee for each
2402	2402	salesperson'ssalesperson license shall be eighty-five dollars
2403	2403	($85) per year for each year or portion of a year remaining in
2404	2404	the respective license period, and the renewal fee for each
2405	2405	salesperson'ssalesperson license shall be eighty-five dollars
2406	2406	($85) per year for each year of the license period. The
2407	2407	original fee for each company license shall be eighty-five
2408	2408	dollars ($85) per year for each year or portion of a year
2409	2409	remaining in the respective license period, and the renewal
2410	2410	fee for each license shall be eighty-five dollars ($85) per
2411	2411	year for each year of the license period.
2412	2412	(d)(1) The renewal research and education fee shall be
2413	2413	twoseven dollars and fifty cents ($2.50)($7.50) per year for
2414	2414	each year of the license period and shall be paid at the time
2415	2415	of license renewal by all brokers and salespersons in addition
2416	2416	to the license renewal fees set out in this section.
2417	2417	1149
2418	2418	1150
2419	2419	1151
2420	2420	1152
2421	2421	1153
2422	2422	1154
2423	2423	1155
2424	2424	1156
2425	2425	1157
2426	2426	1158
2427	2427	1159
2428	2428	1160
2429	2429	1161
2430	2430	1162
2431	2431	1163
2432	2432	1164
2433	2433	1165
2434	2434	1166
2435	2435	1167
2436	2436	1168
2437	2437	1169
2438	2438	1170
2439	2439	1171
2440	2440	1172
2441	2441	1173
2442	2442	1174
2443	2443	1175
2444	2444	1176 HB13 INTRODUCED
2445	2445	Page 43
2446	2446	to the license renewal fees set out in this section.
2447	2447	Collection of this fee shall apply to all broker and
2448	2448	salesperson renewals, except that brokers who hold more than
2449	2449	one broker'sbroker license shall pay the fee for only one
2450	2450	license at each renewal.
2451	2451	(2) Beginning June 1, 2014, this fee shall be seven
2452	2452	dollars and fifty cents ($7.50), and the The proceeds shall be
2453	2453	distributed to the Alabama Center for Real Estate.
2454	2454	(e) The original research and education fee shall be
2455	2455	thirty dollars ($30) and shall be paid at the time of all
2456	2456	applications received on and after October 15, 1995, for
2457	2457	issuance of an original broker'sbroker license, and shall be
2458	2458	paid at the time of all applications received on and after
2459	2459	October 15, 1995, for issuance of a temporary
2460	2460	salesperson'ssalesperson license. The original research and
2461	2461	education fee shall also be paid by reciprocal salespersons.
2462	2462	This is in addition to the original license fees set out in
2463	2463	this section. This thirty dollar ($30) original research and
2464	2464	education fee is a one-time fee which no person shall be
2465	2465	required to pay more than once.
2466	2466	(f) The license of a salesperson who is subsequently
2467	2467	issued a broker'sbroker license automatically terminates upon
2468	2468	the issuance of his or her broker'sbroker license certificate.
2469	2469	The salesperson'ssalesperson license certificate shall be
2470	2470	returned to the commission in order for a broker'sbroker
2471	2471	license to be issued. No refund shall be made of any fee or
2472	2472	Recovery Fund deposit pertaining to the salesperson's,
2473	2473	broker's, or company's salesperson, broker, or company license
2474	2474	once it has been in effect .
2475	2475	1177
2476	2476	1178
2477	2477	1179
2478	2478	1180
2479	2479	1181
2480	2480	1182
2481	2481	1183
2482	2482	1184
2483	2483	1185
2484	2484	1186
2485	2485	1187
2486	2486	1188
2487	2487	1189
2488	2488	1190
2489	2489	1191
2490	2490	1192
2491	2491	1193
2492	2492	1194
2493	2493	1195
2494	2494	1196
2495	2495	1197
2496	2496	1198
2497	2497	1199
2498	2498	1200
2499	2499	1201
2500	2500	1202
2501	2501	1203
2502	2502	1204 HB13 INTRODUCED
2503	2503	Page 44
2504	2504	once it has been in effect .
2505	2505	(g) The commission shall prescribe a license renewal
2506	2506	form, which shall accompany renewal fees whichand shall be
2507	2507	filed on or before August 31 of the final year of each license
2508	2508	period in order for the respective license to be renewed on a
2509	2509	timely basis for the following license period. If any of the
2510	2510	foregoing are filed during the period from September 1 through
2511	2511	September 30 of the final year of a license period, the one
2512	2512	hundred fifty dollar ($150) penalty set out below shall be
2513	2513	paid in addition to the renewal fees. Failure to meet this
2514	2514	September 30 deadline shall result in the license being placed
2515	2515	on inactive status on the following October 1, and the license
2516	2516	shall be subject to all reactivation requirements.
2517	2517	Reactivations shall be processed in the order received as
2518	2518	evidenced by postmark or delivery date. Certified or
2519	2519	registered mail may be used for reactivation in these cases.
2520	2520	Licensees filing during the period from September 1 of the
2521	2521	final year of a license period through September 30 of the
2522	2522	initial year of a license period shall pay the required
2523	2523	license fee, plus a penalty of one hundred fifty dollars
2524	2524	($150).
2525	2525	(h) The renewal form shall be mailed by the commission
2526	2526	to the licensee's place of business, if an active licensee, or
2527	2527	to his or her residence, if an inactive licensee, prior to
2528	2528	August 1 of the final year of each license period. Each
2529	2529	licensee shall notify the commission in writing of any change
2530	2530	in his or her business or residence address within 30 days of
2531	2531	the change.
2532	2532	(i) Every license shall expire at midnight on September
2533	2533	1205
2534	2534	1206
2535	2535	1207
2536	2536	1208
2537	2537	1209
2538	2538	1210
2539	2539	1211
2540	2540	1212
2541	2541	1213
2542	2542	1214
2543	2543	1215
2544	2544	1216
2545	2545	1217
2546	2546	1218
2547	2547	1219
2548	2548	1220
2549	2549	1221
2550	2550	1222
2551	2551	1223
2552	2552	1224
2553	2553	1225
2554	2554	1226
2555	2555	1227
2556	2556	1228
2557	2557	1229
2558	2558	1230
2559	2559	1231
2560	2560	1232 HB13 INTRODUCED
2561	2561	Page 45
2562	2562	(i) Every license shall expire at midnight on September
2563	2563	30 of the final year of each license period. An expired
2564	2564	license may be renewed during the 12-month period following
2565	2565	the license period for which the license was current. A
2566	2566	licensee who fails to renew before the end of the 12-month
2567	2567	period following the license period for which the license was
2568	2568	issued has a lapsed license, and shall be subject to all
2569	2569	requirements applicable to persons who have never been
2570	2570	licensed, however, the commission may upon determination of
2571	2571	hardship, allow later renewal upon payment of all fees and
2572	2572	penalties. An inactive license must be renewed in the same
2573	2573	manner as an active license.
2574	2574	(j)(1) Each applicant for renewal of an active
2575	2575	salesperson or broker license issued by the commission shall,
2576	2576	on or before September 30 of the final year of each license
2577	2577	period, submit proof of completion of not less than 15 clock
2578	2578	hours of approved continuing education course work to the
2579	2579	commission, in addition to any other requirements for renewal.
2580	2580	Failure to meet this deadline shall result in the license
2581	2581	being placed on inactive status on the following October 1,
2582	2582	and the license shall be subject to all reactivation
2583	2583	requirements. Reactivations shall be processed in the order
2584	2584	received as evidenced by postmark or delivery date. Certified
2585	2585	or registered mail may be used for reactivation in this case.
2586	2586	Proof of attendance at the course work, whether or not the
2587	2587	applicant attained a passing grade in the course, shall be
2588	2588	sufficient to satisfy requirements for renewal. The 15 clock
2589	2589	hours' course work requirement shall apply to each two-year
2590	2590	license renewal, and hours in excess of 15 shall not be
2591	2591	1233
2592	2592	1234
2593	2593	1235
2594	2594	1236
2595	2595	1237
2596	2596	1238
2597	2597	1239
2598	2598	1240
2599	2599	1241
2600	2600	1242
2601	2601	1243
2602	2602	1244
2603	2603	1245
2604	2604	1246
2605	2605	1247
2606	2606	1248
2607	2607	1249
2608	2608	1250
2609	2609	1251
2610	2610	1252
2611	2611	1253
2612	2612	1254
2613	2613	1255
2614	2614	1256
2615	2615	1257
2616	2616	1258
2617	2617	1259
2618	2618	1260 HB13 INTRODUCED
2619	2619	Page 46
2620	2620	license renewal, and hours in excess of 15 shall not be
2621	2621	cumulated or credited for the purpose of subsequent license
2622	2622	renewals. The commission shall develop standards for approval
2623	2623	of courses, and shall require certification of the course work
2624	2624	of the applicant.
2625	2625	Time served as a member of the state Legislature during
2626	2626	each license renewal period shall be deemed the equivalent of
2627	2627	the 15 hours course work and shall satisfy the requirements of
2628	2628	this subsection.
2629	2629	(2) This section shall apply to renewals of licenses
2630	2630	which expire after September 30, 1986. An applicant for first
2631	2631	renewal who has been licensed for not more than one year shall
2632	2632	not be required to comply with this section for the first
2633	2633	renewal of the applicant's license. Any licensee reaching the
2634	2634	age of 65 on or before September 30, 2000, and having been
2635	2635	licensed 10 years prior to that date shall be exempt from this
2636	2636	section.
2637	2637	(3) Continuing education shall not result in a passing
2638	2638	or failing grade.
2639	2639	(k) A licensee may request that the commission issue
2640	2640	his or her license toas inactive status. Inactive licenses
2641	2641	shall be held at the commission office until activated. No act
2642	2642	for which a license is required shall be performed under an
2643	2643	inactive license.
2644	2644	(l) If a licensee presents a form of payment to the
2645	2645	commission, or to any third party on the commission's behalf,
2646	2646	which is declined or rejected by a financial institution or
2647	2647	merchant service company, the licensee shall have 30 days upon
2648	2648	electronic notification from the commission to submit full and
2649	2649	1261
2650	2650	1262
2651	2651	1263
2652	2652	1264
2653	2653	1265
2654	2654	1266
2655	2655	1267
2656	2656	1268
2657	2657	1269
2658	2658	1270
2659	2659	1271
2660	2660	1272
2661	2661	1273
2662	2662	1274
2663	2663	1275
2664	2664	1276
2665	2665	1277
2666	2666	1278
2667	2667	1279
2668	2668	1280
2669	2669	1281
2670	2670	1282
2671	2671	1283
2672	2672	1284
2673	2673	1285
2674	2674	1286
2675	2675	1287
2676	2676	1288 HB13 INTRODUCED
2677	2677	Page 47
2678	2678	electronic notification from the commission to submit full and
2679	2679	valid payment for the initial fee or fine and an additional
2680	2680	fee for submitting the faulty payment, not to exceed the
2681	2681	maximum amount allowed by Section 8-8-15. Failure to submit
2682	2682	full and valid payment within 30 days of electronic
2683	2683	notification by the commission will result in the license
2684	2684	becoming inactive. Failure to submit full and valid payment
2685	2685	within six months after electronic notification by the
2686	2686	commission will result in the license lapsing. "
2687	2687	Section 9. Section 34-27-35, Code of Alabama 1975, is
2688	2688	amended to read as follows:
2689	2689	"§34-27-35
2690	2690	(a) The commission shall prescribe the form and content
2691	2691	of license certificates issued. Each qualifying broker's
2692	2692	license certificate shall show the name and business address
2693	2693	of the broker. The license certificate of each active
2694	2694	salesperson or associate broker shall show his or her name and
2695	2695	address. The license certificate of each active salesperson or
2696	2696	associate broker shall be delivered or mailed to his or her
2697	2697	qualifying broker. Each license certificate shall be kept by
2698	2698	the qualifying broker and shall be publicly displayed at the
2699	2699	address which appears on the license certificate.
2700	2700	(b) The commission may establish a one-year or
2701	2701	multi-year license period.
2702	2702	(c)(1) The fee for a temporary license shall be one
2703	2703	hundred fifty dollars ($150). The original fee for a
2704	2704	broker'sbroker license shall be one hundred fifty dollars
2705	2705	($150) and, beginning with the license period effective
2706	2706	October 1, 2002, the renewal fee for a broker's license shall
2707	2707	1289
2708	2708	1290
2709	2709	1291
2710	2710	1292
2711	2711	1293
2712	2712	1294
2713	2713	1295
2714	2714	1296
2715	2715	1297
2716	2716	1298
2717	2717	1299
2718	2718	1300
2719	2719	1301
2720	2720	1302
2721	2721	1303
2722	2722	1304
2723	2723	1305
2724	2724	1306
2725	2725	1307
2726	2726	1308
2727	2727	1309
2728	2728	1310
2729	2729	1311
2730	2730	1312
2731	2731	1313
2732	2732	1314
2733	2733	1315
2734	2734	1316 HB13 INTRODUCED
2735	2735	Page 48
2736	2736	October 1, 2002, the renewal fee for a broker's license shall
2737	2737	be seventy-five dollars ($75) per year for each year of the
2738	2738	license period. The original fee for each salesperson's
2739	2739	license shall be sixty-five dollars ($65) per year for each
2740	2740	year or portion of a year remaining in the respective license
2741	2741	period, and the renewal fee for each salesperson's license
2742	2742	shall be sixty-five dollars ($65) per year for each year of
2743	2743	the license period. The original fee for each company license
2744	2744	shall be sixty-five dollars ($65) per year for each year or
2745	2745	portion of a year remaining in the respective license period,
2746	2746	and the renewal fee for each license shall be sixty-five
2747	2747	dollars ($65) per year for each year of the license period .
2748	2748	(2) Beginning with the license period effective October
2749	2749	1, 2004, theThe renewal fee for a broker'sbroker license shall
2750	2750	be ninety-five dollars ($95) per year for each year of the
2751	2751	license period. The original fee for each
2752	2752	salesperson'ssalesperson license shall be eighty-five dollars
2753	2753	($85) per year for each year or portion of a year remaining in
2754	2754	the respective license period, and the renewal fee for each
2755	2755	salesperson'ssalesperson license shall be eighty-five dollars
2756	2756	($85) per year for each year of the license period. The
2757	2757	original fee for each company license shall be eighty-five
2758	2758	dollars ($85) per year for each year or portion of a year
2759	2759	remaining in the respective license period, and the renewal
2760	2760	fee for each license shall be eighty-five dollars ($85) per
2761	2761	year for each year of the license period.
2762	2762	(d)(1) The renewal research and education fee shall be
2763	2763	twoseven dollars and fifty cents ($2.50)($7.50) per year for
2764	2764	each year of the license period and shall be paid at the time
2765	2765	1317
2766	2766	1318
2767	2767	1319
2768	2768	1320
2769	2769	1321
2770	2770	1322
2771	2771	1323
2772	2772	1324
2773	2773	1325
2774	2774	1326
2775	2775	1327
2776	2776	1328
2777	2777	1329
2778	2778	1330
2779	2779	1331
2780	2780	1332
2781	2781	1333
2782	2782	1334
2783	2783	1335
2784	2784	1336
2785	2785	1337
2786	2786	1338
2787	2787	1339
2788	2788	1340
2789	2789	1341
2790	2790	1342
2791	2791	1343
2792	2792	1344 HB13 INTRODUCED
2793	2793	Page 49
2794	2794	each year of the license period and shall be paid at the time
2795	2795	of license renewal by all brokers and salespersons in addition
2796	2796	to the license renewal fees set out in this section.
2797	2797	Collection of this fee shall apply to all broker and
2798	2798	salesperson renewals, except that brokers who hold more than
2799	2799	one broker'sbroker license shall pay the fee for only one
2800	2800	license at each renewal.
2801	2801	(2) Beginning June 1, 2014, this fee shall be seven
2802	2802	dollars and fifty cents ($7.50), and the The proceeds shall be
2803	2803	distributed to the Alabama Center for Real Estate.
2804	2804	(e) The original research and education fee shall be
2805	2805	thirty dollars ($30) and shall be paid at the time of all
2806	2806	applications received on and after October 15, 1995, for
2807	2807	issuance of an original broker'sbroker license, and shall be
2808	2808	paid at the time of all applications received on and after
2809	2809	October 15, 1995, for issuance of a temporary
2810	2810	salesperson'ssalesperson license. The original research and
2811	2811	education fee shall also be paid by reciprocal salespersons.
2812	2812	This is in addition to the original license fees set out in
2813	2813	this section. This thirty dollar ($30) original research and
2814	2814	education fee is a one-time fee which no person shall be
2815	2815	required to pay more than once.
2816	2816	(f) The license of a salesperson who is subsequently
2817	2817	issued a broker'sbroker license automatically terminates upon
2818	2818	the issuance of his or her broker'sbroker license certificate.
2819	2819	The salesperson's license certificate shall be returned to the
2820	2820	commission in order for a broker's license to be issued. No
2821	2821	refund shall be made of any fee or Recovery Fund deposit
2822	2822	pertaining to the salesperson's, broker's, or
2823	2823	1345
2824	2824	1346
2825	2825	1347
2826	2826	1348
2827	2827	1349
2828	2828	1350
2829	2829	1351
2830	2830	1352
2831	2831	1353
2832	2832	1354
2833	2833	1355
2834	2834	1356
2835	2835	1357
2836	2836	1358
2837	2837	1359
2838	2838	1360
2839	2839	1361
2840	2840	1362
2841	2841	1363
2842	2842	1364
2843	2843	1365
2844	2844	1366
2845	2845	1367
2846	2846	1368
2847	2847	1369
2848	2848	1370
2849	2849	1371
2850	2850	1372 HB13 INTRODUCED
2851	2851	Page 50
2852	2852	pertaining to the salesperson's, broker's, or
2853	2853	company'ssalesperson, broker, or company license once it has
2854	2854	been in effect.
2855	2855	(g) The commission shall prescribe a license renewal
2856	2856	form, which shall accompany renewal fees and which shall be
2857	2857	filed on or before August 31September 30 of the final year of
2858	2858	each license period in order for the respective license to be
2859	2859	renewed on a timely basis for the following license period. If
2860	2860	any of the foregoing are filed during the period from
2861	2861	September 1 through September 30 of the final year of a
2862	2862	license period, the one hundred fifty dollar ($150) penalty
2863	2863	set out below shall be paid in addition to the renewal fees.
2864	2864	Failure to meet this September 30 deadline shall result in the
2865	2865	license expiring and being placed on inactive status on the
2866	2866	following October 1, and the license shall be subject to all
2867	2867	reactivation requirements. Reactivations shall be processed in
2868	2868	the order received as evidenced by postmark or delivery date.
2869	2869	Certified or registered mail may be used for reactivation in
2870	2870	these cases. Licensees filing during the period from September
2871	2871	1 of the final year of a license period through after September
2872	2872	30 of the initial year of a license period shall pay the
2873	2873	required license fee, plus a penalty of one hundred fifty
2874	2874	dollars ($150).
2875	2875	(h) The renewal form shall be mailed by the commission
2876	2876	to the licensee's place of business, if an active licensee, or
2877	2877	to his or her residence, if an inactive licensee, prior to
2878	2878	August 1 of the final year of each license period. Each
2879	2879	licensee shall notify the commission in writing of any change
2880	2880	in his or her business or residence address within 30 days of
2881	2881	1373
2882	2882	1374
2883	2883	1375
2884	2884	1376
2885	2885	1377
2886	2886	1378
2887	2887	1379
2888	2888	1380
2889	2889	1381
2890	2890	1382
2891	2891	1383
2892	2892	1384
2893	2893	1385
2894	2894	1386
2895	2895	1387
2896	2896	1388
2897	2897	1389
2898	2898	1390
2899	2899	1391
2900	2900	1392
2901	2901	1393
2902	2902	1394
2903	2903	1395
2904	2904	1396
2905	2905	1397
2906	2906	1398
2907	2907	1399
2908	2908	1400 HB13 INTRODUCED
2909	2909	Page 51
2910	2910	in his or her business or residence address within 30 days of
2911	2911	the change.
2912	2912	(i) Every license shall expire at midnight on September
2913	2913	30 of the final year of each license period , except for a
2914	2914	temporary salesperson whose license becomes inactive 90 days
2915	2915	after issuance or a temporary broker whose license expires six
2916	2916	months after issuance . An expired license may be renewed
2917	2917	during the 12-month period following the license period for
2918	2918	which the license was current. A licensee who fails to renew
2919	2919	before the end of the 12-month period following the license
2920	2920	period for which the license was issued has a lapsed license,
2921	2921	and shall be subject to all requirements applicable to persons
2922	2922	who have never been licensed, however, the commission may upon
2923	2923	determination of hardship, allow later renewal upon payment of
2924	2924	all fees and penalties. An inactive license must be renewed in
2925	2925	the same manner as an active license.
2926	2926	(j)(1) Each applicant for renewal of an active
2927	2927	salesperson or broker license issued by the commission shall,
2928	2928	on or before September 30 of the final year of each license
2929	2929	period, submitconfirm through the commission's website proof
2930	2930	of completion of not less than 15 clock his or her continuing
2931	2931	education requirement hours of approved continuing education
2932	2932	course work to the commission, in addition to any other
2933	2933	requirements for renewal. A maximum of six one-clock-hour
2934	2934	courses shall be accepted by the commission as part of a
2935	2935	licensee's continuing education requirement. Failure to meet
2936	2936	this deadline shall result in the license being placed on
2937	2937	inactive status on the following October 1, and the license
2938	2938	shall be subject to all reactivation requirements.
2939	2939	1401
2940	2940	1402
2941	2941	1403
2942	2942	1404
2943	2943	1405
2944	2944	1406
2945	2945	1407
2946	2946	1408
2947	2947	1409
2948	2948	1410
2949	2949	1411
2950	2950	1412
2951	2951	1413
2952	2952	1414
2953	2953	1415
2954	2954	1416
2955	2955	1417
2956	2956	1418
2957	2957	1419
2958	2958	1420
2959	2959	1421
2960	2960	1422
2961	2961	1423
2962	2962	1424
2963	2963	1425
2964	2964	1426
2965	2965	1427
2966	2966	1428 HB13 INTRODUCED
2967	2967	Page 52
2968	2968	shall be subject to all reactivation requirements.
2969	2969	(2)a. Reactivations shall be processed in the order
2970	2970	received as evidenced by postmark or delivery date. Certified
2971	2971	or registered mail may be used for reactivation in this case.
2972	2972	Proof of attendance at the completion of course work, whether
2973	2973	or not the applicant attained a passing grade in the course,
2974	2974	shall be sufficient to satisfy requirements for renewal. The
2975	2975	15 clock hours' course work continuing education requirement
2976	2976	shall apply to each two-year license renewal, and hours in
2977	2977	excess of 15 shall not be cumulated or credited for the
2978	2978	purpose ofapplicable to subsequent license renewals. The
2979	2979	commission shall develop standards for approval of courses,
2980	2980	and shall require certification of the course work of the
2981	2981	applicant. No continuing education course shall be approved by
2982	2982	the commission unless the course is at least 60 minutes of
2983	2983	instruction.
2984	2984	b. Time served as a member of the state Legislature
2985	2985	during each license renewal period shall be deemed the
2986	2986	equivalent of the 15 hours course work continuing education
2987	2987	requirement and shall satisfy the requirements of this
2988	2988	subsection.
2989	2989	(3)(2) This section shall apply to renewals of licenses
2990	2990	which expire after September 30, 1986. An applicant for first
2991	2991	renewal of an original license who has been licensed for not
2992	2992	more than one year shall not be required to comply with this
2993	2993	section for the first renewal of the applicant's license. Any
2994	2994	licensee reaching the age of 65 on or before September 30,
2995	2995	2000, and having been licensed 10 years prior to that date
2996	2996	shall be exempt from this section.
2997	2997	1429
2998	2998	1430
2999	2999	1431
3000	3000	1432
3001	3001	1433
3002	3002	1434
3003	3003	1435
3004	3004	1436
3005	3005	1437
3006	3006	1438
3007	3007	1439
3008	3008	1440
3009	3009	1441
3010	3010	1442
3011	3011	1443
3012	3012	1444
3013	3013	1445
3014	3014	1446
3015	3015	1447
3016	3016	1448
3017	3017	1449
3018	3018	1450
3019	3019	1451
3020	3020	1452
3021	3021	1453
3022	3022	1454
3023	3023	1455
3024	3024	1456 HB13 INTRODUCED
3025	3025	Page 53
3026	3026	shall be exempt from this section.
3027	3027	(3)(4) Continuing education shall not result in a
3028	3028	passing or failing grade.
3029	3029	(k) A licensee may request that the commission issue
3030	3030	his or her license toin an inactive status. Inactive licenses
3031	3031	shall be held at the commission office until activated. No act
3032	3032	for which a license is required shall be performed under an
3033	3033	inactive license.
3034	3034	(l) If a licensee presents a form of payment to the
3035	3035	commission, or to any third party on the commission's behalf,
3036	3036	which is declined or rejected by a financial institution or
3037	3037	merchant service company, the licensee shall have 30 days upon
3038	3038	electronic notification from the commission to submit full and
3039	3039	valid payment for the initial fee or fine and an additional
3040	3040	fee for submitting the faulty payment, not to exceed the
3041	3041	maximum amount allowed by Section 8-8-15. Failure to submit
3042	3042	full and valid payment within 30 days of electronic
3043	3043	notification by the commission will result in the license
3044	3044	becoming inactive. Failure to submit full and valid payment
3045	3045	within six months after electronic notification by the
3046	3046	commission will result in the license lapsing. "
3047	3047	Section 10. Section 34-27-36, Code of Alabama 1975, is
3048	3048	amended to read as follows:
3049	3049	"§34-27-36
3050	3050	(a)(1) The commission or its staff may on its own, or
3051	3051	on the verified complaint in writing of any person,
3052	3052	investigate the actions and records of a licensee. The
3053	3053	commission may issue subpoenas and compel the testimony of
3054	3054	witnesses and the production of records and documents during
3055	3055	1457
3056	3056	1458
3057	3057	1459
3058	3058	1460
3059	3059	1461
3060	3060	1462
3061	3061	1463
3062	3062	1464
3063	3063	1465
3064	3064	1466
3065	3065	1467
3066	3066	1468
3067	3067	1469
3068	3068	1470
3069	3069	1471
3070	3070	1472
3071	3071	1473
3072	3072	1474
3073	3073	1475
3074	3074	1476
3075	3075	1477
3076	3076	1478
3077	3077	1479
3078	3078	1480
3079	3079	1481
3080	3080	1482
3081	3081	1483
3082	3082	1484 HB13 INTRODUCED
3083	3083	Page 54
3084	3084	witnesses and the production of records and documents during
3085	3085	an investigation. If probable cause is found, a formal
3086	3086	complaint shall be filed and the commission shall hold a
3087	3087	hearing on the formal complaint.
3088	3088	(2) In each instance in which a person or entity
3089	3089	engages in any of the acts described in subsection (b) or is
3090	3090	found in violation of any of the conduct prohibited in
3091	3091	subsection (b), the commission may impose any of the following
3092	3092	penalties:
3093	3093	a. Impose a fine of not less than one hundred dollars
3094	3094	($100) nor more than five thousand dollars ($5,000).
3095	3095	b. Require completion of approved education course or
3096	3096	courses in addition to the existing continuing education
3097	3097	requirements.
3098	3098	c. Issue a public reprimand.
3099	3099	d. Revoke or suspend any or all licenses held under
3100	3100	this chapter by the person or entity The commission shall
3101	3101	revoke or suspend the license or impose a fine of not less
3102	3102	than one hundred dollars ($100) nor more than two thousand
3103	3103	five hundred dollars ($2,500), or both, or reprimand the
3104	3104	licensee in each instance in which the licensee is found
3105	3105	guilty of any of the following acts set out in this section.
3106	3106	The commission may revoke or suspend a license until such time
3107	3107	as the licensee has completed an approved continuing education
3108	3108	course,and/orhas made restitution to accounts containing
3109	3109	funds to be held for other parties , or both. The commission
3110	3110	may also stay the revocation or suspension of a license and
3111	3111	require completion of an approved education course and/or,
3112	3112	require the making of restitution to accounts containing funds
3113	3113	1485
3114	3114	1486
3115	3115	1487
3116	3116	1488
3117	3117	1489
3118	3118	1490
3119	3119	1491
3120	3120	1492
3121	3121	1493
3122	3122	1494
3123	3123	1495
3124	3124	1496
3125	3125	1497
3126	3126	1498
3127	3127	1499
3128	3128	1500
3129	3129	1501
3130	3130	1502
3131	3131	1503
3132	3132	1504
3133	3133	1505
3134	3134	1506
3135	3135	1507
3136	3136	1508
3137	3137	1509
3138	3138	1510
3139	3139	1511
3140	3140	1512 HB13 INTRODUCED
3141	3141	Page 55
3142	3142	require the making of restitution to accounts containing funds
3143	3143	to be held for other parties , or both.
3144	3144	(b) A licensee is prohibited from doing any of the
3145	3145	following:
3146	3146	(1) Procuring or attempting to procure , a license, for
3147	3147	himself or herself or another, by fraud, misrepresentation, or
3148	3148	deceit, or by making a material misstatement of fact in an
3149	3149	application for a license.
3150	3150	(2) Engaging in misrepresentation or dishonest or
3151	3151	fraudulent acts when selling, buying, trading, or renting real
3152	3152	property of his or her own or of a spouse or child or parent.
3153	3153	(3) Making a material misrepresentation, or failing to
3154	3154	disclose to a potential purchaser or lessee any latent
3155	3155	structural defect or any other defect known to the licensee.
3156	3156	Latent structural defects and other defects do not refer to
3157	3157	trivial or insignificant defects but refer to those defects
3158	3158	that would be a significant factor to a reasonable and prudent
3159	3159	person in making a decision to purchase or lease.
3160	3160	(4) Making any false promises of a character likely to
3161	3161	influence, persuade, or induce any person to enter into any
3162	3162	contract or agreement.
3163	3163	(5) Pursuing a continued and flagrant course of
3164	3164	misrepresentation or the making of false promises through
3165	3165	agents or salespersons or any medium of advertising or
3166	3166	otherwise.
3167	3167	(6) Publishing or causing to be published any
3168	3168	advertisement which deceives or which is likely to deceive the
3169	3169	public, or which in any manner tends to create a misleading
3170	3170	1513
3171	3171	1514
3172	3172	1515
3173	3173	1516
3174	3174	1517
3175	3175	1518
3176	3176	1519
3177	3177	1520
3178	3178	1521
3179	3179	1522
3180	3180	1523
3181	3181	1524
3182	3182	1525
3183	3183	1526
3184	3184	1527
3185	3185	1528
3186	3186	1529
3187	3187	1530
3188	3188	1531
3189	3189	1532
3190	3190	1533
3191	3191	1534
3192	3192	1535
3193	3193	1536
3194	3194	1537
3195	3195	1538
3196	3196	1539 HB13 INTRODUCED
3197	3197	Page 56
3198	3198	public, or which in any manner tends to create a misleading
3199	3199	impression or which fails to identify the person causing the
3200	3200	advertisement to be placed as a licensed broker or
3201	3201	salesperson.
3202	3202	(7) Acting for more than one party in a transaction
3203	3203	without the knowledge and consent in writing of all parties
3204	3204	for whom he or she acts.
3205	3205	(8)a. Failing, within a reasonable time, to properly
3206	3206	account for or remit money coming into his or her possession
3207	3207	which belongs to others, or commingling money belonging to
3208	3208	others with his or her own funds.
3209	3209	b. Failing to deposit and account for at all times all
3210	3210	funds belonging to, or being held for others, in a separate
3211	3211	federally insured account or accounts in a financial
3212	3212	institution located in Alabama.
3213	3213	c. Failing to keep for at least three years a complete
3214	3214	record of funds belonging to others showing to whom the money
3215	3215	belongs, date deposited, date of withdrawal, and other
3216	3216	pertinent information.
3217	3217	(9) Placing a sign on any property offering it for
3218	3218	sale, lease, or rent without the consent of the owner.
3219	3219	(10) Failing to voluntarily furnish a copy of each
3220	3220	listing, contract, lease, and other document to each party
3221	3221	executing the document with reasonable promptness.
3222	3222	(11) Paying any profit, compensation, commission, or
3223	3223	fee to, or dividing any profit, compensation, commission, or
3224	3224	fee with, anyone other than a licensee or multiple listing
3225	3225	service. This subdivision shall not prevent an associate
3226	3226	broker or salesperson from owning any lawfully constituted
3227	3227	1540
3228	3228	1541
3229	3229	1542
3230	3230	1543
3231	3231	1544
3232	3232	1545
3233	3233	1546
3234	3234	1547
3235	3235	1548
3236	3236	1549
3237	3237	1550
3238	3238	1551
3239	3239	1552
3240	3240	1553
3241	3241	1554
3242	3242	1555
3243	3243	1556
3244	3244	1557
3245	3245	1558
3246	3246	1559
3247	3247	1560
3248	3248	1561
3249	3249	1562
3250	3250	1563
3251	3251	1564
3252	3252	1565
3253	3253	1566
3254	3254	1567 HB13 INTRODUCED
3255	3255	Page 57
3256	3256	broker or salesperson from owning any lawfully constituted
3257	3257	business organization, including, but not limited to, a
3258	3258	corporation or limited liability company or limited liability
3259	3259	corporation, for the purpose of receiving payments
3260	3260	contemplated in this subsection. The business organization
3261	3261	shall not be required to be licensed under this chapter, and
3262	3262	shall not engage in any other activity requiring a real estate
3263	3263	license.
3264	3264	(12) Paying or receiving any rebate from any person in
3265	3265	a real estate transaction.
3266	3266	(13) Inducing any party to a contract to breakbreach
3267	3267	the contract for the purpose of substituting a new contract,
3268	3268	where the substitution is motivated by the personal gain of
3269	3269	the licensee.
3270	3270	(14) If the licensee is a salesperson or associate
3271	3271	broker, accepting a commission or other valuable consideration
3272	3272	for performing any act for which a license is required from
3273	3273	any person except his or her qualifying broker.
3274	3274	(15) If the licensee is a qualifying broker or company,
3275	3275	allowing a salesperson or associate broker licensed under him
3276	3276	or her to advertise himself or herself as a real estate agent
3277	3277	without the name or trade name of the qualifying broker or
3278	3278	company appearing prominently on the advertising; or if the
3279	3279	licensee is a salesperson or associate broker, advertising
3280	3280	himself or herself as a real estate agent without the name or
3281	3281	trade name of the qualifying broker or company under whom the
3282	3282	salesperson or associate broker is licensed appearing
3283	3283	prominently on the advertising. For purposes of this
3284	3284	subdivision, "prominently" means use of a font size that is
3285	3285	1568
3286	3286	1569
3287	3287	1570
3288	3288	1571
3289	3289	1572
3290	3290	1573
3291	3291	1574
3292	3292	1575
3293	3293	1576
3294	3294	1577
3295	3295	1578
3296	3296	1579
3297	3297	1580
3298	3298	1581
3299	3299	1582
3300	3300	1583
3301	3301	1584
3302	3302	1585
3303	3303	1586
3304	3304	1587
3305	3305	1588
3306	3306	1589
3307	3307	1590
3308	3308	1591
3309	3309	1592
3310	3310	1593
3311	3311	1594
3312	3312	1595 HB13 INTRODUCED
3313	3313	Page 58
3314	3314	subdivision, "prominently" means use of a font size that is
3315	3315	equal to or larger in size than any other text or logo in the
3316	3316	advertisement and situated and sized for the purpose of
3317	3317	gaining the attention of consumers viewing the advertisement.
3318	3318	(16) Presenting to the commission, as payment for a fee
3319	3319	or fine, a check that is returned unpaid a. Failing, as the
3320	3320	buyer's agent, to notify the listing agent in writing within
3321	3321	three business days in the event that the buyer has not
3322	3322	deposited earnest money in accordance with a contract
3323	3323	requiring the buyer to deposit escrow funds with any person or
3324	3324	entity.
3325	3325	b. Failing, as the listing agent, to notify his or her
3326	3326	client immediately if no written receipt of escrow funds has
3327	3327	been provided to the listing agent within three business days
3328	3328	of the time specified by the contract for deposit of escrow
3329	3329	funds.
3330	3330	(17) Establishing an association, by employment or
3331	3331	otherwise, with an unlicensed person who is expected or
3332	3332	required to act as a licensee, or aiding, abetting, or
3333	3333	conspiring with a person to circumvent the requirements of
3334	3334	this chapter.
3335	3335	(18) Failing to disclose to an owner the licensee's
3336	3336	intention to acquire, directly or indirectly, an interest in
3337	3337	property which he or she or his or her associates have been
3338	3338	employed to sell.
3339	3339	(19) Violating or disregarding any provision of this
3340	3340	chapter or any rule, regulation, or order of the commission.
3341	3341	(20) If a broker , accepting accepts a "net listing"
3342	3342	agreement for sale of real property or any interest therein. A
3343	3343	1596
3344	3344	1597
3345	3345	1598
3346	3346	1599
3347	3347	1600
3348	3348	1601
3349	3349	1602
3350	3350	1603
3351	3351	1604
3352	3352	1605
3353	3353	1606
3354	3354	1607
3355	3355	1608
3356	3356	1609
3357	3357	1610
3358	3358	1611
3359	3359	1612
3360	3360	1613
3361	3361	1614
3362	3362	1615
3363	3363	1616
3364	3364	1617
3365	3365	1618
3366	3366	1619
3367	3367	1620
3368	3368	1621
3369	3369	1622
3370	3370	1623 HB13 INTRODUCED
3371	3371	Page 59
3372	3372	agreement for sale of real property or any interest therein. A
3373	3373	"net listing" is one that stipulates a net price to be
3374	3374	received by the owner with the excess due to be received by
3375	3375	the broker as his or her commission.
3376	3376	(21) Misrepresenting or failing to disclose to any
3377	3377	lender, guaranteeing agency, or any other interested party,
3378	3378	the true terms of a sale of real estate.
3379	3379	(22) Failing to inform the buyer or seller at the time
3380	3380	an offer is presented that he or she will be expected to pay
3381	3381	certain closing costs and the approximate amount of those
3382	3382	costs.
3383	3383	(23)a. Having entered a plea of guilty or nolo
3384	3384	contendere to, or having been found guilty of or convicted of
3385	3385	a felony or a crime involving moral turpitude.
3386	3386	b. Having a final money judgment rendered against him
3387	3387	or her which results from an act or omission occurring in the
3388	3388	pursuit of his or her real estate business or involves the
3389	3389	goodwill of an existing real estate business.
3390	3390	(24) Offering free lots or conducting lotteries for the
3391	3391	purpose of influencing a party to purchase or lease real
3392	3392	estate.
3393	3393	(25)a. Failing to include a fixed date of expiration in
3394	3394	a written listing agreement or failing to leave a copy of the
3395	3395	written residential listing agreement or written residential
3396	3396	property management agreement with the principal.
3397	3397	b. Failing to include a fixed date of expiration, not
3398	3398	to exceed one year from the date of commencement, in a written
3399	3399	residential listing agreement.
3400	3400	c. Recording or filing a residential listing agreement
3401	3401	1624
3402	3402	1625
3403	3403	1626
3404	3404	1627
3405	3405	1628
3406	3406	1629
3407	3407	1630
3408	3408	1631
3409	3409	1632
3410	3410	1633
3411	3411	1634
3412	3412	1635
3413	3413	1636
3414	3414	1637
3415	3415	1638
3416	3416	1639
3417	3417	1640
3418	3418	1641
3419	3419	1642
3420	3420	1643
3421	3421	1644
3422	3422	1645
3423	3423	1646
3424	3424	1647
3425	3425	1648
3426	3426	1649
3427	3427	1650
3428	3428	1651 HB13 INTRODUCED
3429	3429	Page 60
3430	3430	c. Recording or filing a residential listing agreement
3431	3431	with a probate court or probate office to encumber the
3432	3432	property that is the subject of the listing agreement.
3433	3433	(26) Conduct which constitutes or demonstrates
3434	3434	dishonest dealings, bad faith, or untrustworthiness.
3435	3435	(27) Acting negligently or incompetently in performing
3436	3436	an act for which a person is required to hold a real estate
3437	3437	license.
3438	3438	(28) Failing or refusing on demand to produce a
3439	3439	document, book, or record in his or her possession concerning
3440	3440	a real estate transaction conducted by him or her for
3441	3441	inspection by the commission or its authorized personnel or
3442	3442	representative.
3443	3443	(29) Failing within a reasonable time to provide
3444	3444	information requested by the commission during an
3445	3445	investigation or after a formal complaint has been filed.
3446	3446	(30) Failing without cause to surrender to the rightful
3447	3447	owner, on demand, a document or instrument coming into his or
3448	3448	her possession.
3449	3449	(31) If the licensee is a qualifying broker or company,
3450	3450	failing to keep in their files copies of all contracts,
3451	3451	leases, listings, and other records pertinent to real estate
3452	3452	transactions for a period of three years.
3453	3453	(32) When selling, offering to sell, assigning, or
3454	3454	offering to assign an equitable interest in a contract to
3455	3455	purchase residential real estate:
3456	3456	a. Failing to disclose in writing to a potential buyer
3457	3457	that the holder of the equitable interest is not the deed
3458	3458	holder of the property and is only offering to sell or assign
3459	3459	1652
3460	3460	1653
3461	3461	1654
3462	3462	1655
3463	3463	1656
3464	3464	1657
3465	3465	1658
3466	3466	1659
3467	3467	1660
3468	3468	1661
3469	3469	1662
3470	3470	1663
3471	3471	1664
3472	3472	1665
3473	3473	1666
3474	3474	1667
3475	3475	1668
3476	3476	1669
3477	3477	1670
3478	3478	1671
3479	3479	1672
3480	3480	1673
3481	3481	1674
3482	3482	1675
3483	3483	1676
3484	3484	1677
3485	3485	1678
3486	3486	1679 HB13 INTRODUCED
3487	3487	Page 61
3488	3488	holder of the property and is only offering to sell or assign
3489	3489	his or her equitable interest; or
3490	3490	b. Failing to disclose in writing to a seller both of
3491	3491	the following:
3492	3492	1. The intent to assign an equitable interest in the
3493	3493	seller's real estate prior to offering to assign the interest.
3494	3494	2. The assignment of the interest within three calendar
3495	3495	days following the assignment.
3496	3496	(b)(c) If it appears that a person, firm, corporation,
3497	3497	or any business entity has engaged, or is about to engage, in
3498	3498	an act or practice constituting a violation of Article 1 or 2
3499	3499	of this chapter or any rule or order of the commission, the
3500	3500	commission, through the Attorney General, may institute legal
3501	3501	actions to enjoin the act or practice and to enforce
3502	3502	compliance with Articles 1 and 2 of this chapter or any rule
3503	3503	or order of the commission. To prevail in an action, it shall
3504	3504	not be necessary to allege or prove either that an adequate
3505	3505	remedy at law does not exist or that substantial or
3506	3506	irreparable damage would result from the continued violation.
3507	3507	(c)(d)(1) Notwithstanding any other provisions of law,
3508	3508	the commission may issue an order requiring any accused
3509	3509	person, firm, corporation, or business entity to cease and
3510	3510	desist from engaging in activities requiring a license under
3511	3511	this chapter when the accused person, firm, corporation, or
3512	3512	business entity is not licensed under this chapter. The order
3513	3513	shall be entered by the executive director after a finding of
3514	3514	probable cause by the commission staff. The order shall become
3515	3515	final 15 days after its service upon the accused, unless the
3516	3516	accused requests a hearing before the commission. Upon hearing
3517	3517	1680
3518	3518	1681
3519	3519	1682
3520	3520	1683
3521	3521	1684
3522	3522	1685
3523	3523	1686
3524	3524	1687
3525	3525	1688
3526	3526	1689
3527	3527	1690
3528	3528	1691
3529	3529	1692
3530	3530	1693
3531	3531	1694
3532	3532	1695
3533	3533	1696
3534	3534	1697
3535	3535	1698
3536	3536	1699
3537	3537	1700
3538	3538	1701
3539	3539	1702
3540	3540	1703
3541	3541	1704
3542	3542	1705
3543	3543	1706
3544	3544	1707 HB13 INTRODUCED
3545	3545	Page 62
3546	3546	accused requests a hearing before the commission. Upon hearing
3547	3547	the case and finding violations, the commission may make the
3548	3548	cease and desist order final and the commission may impose a
3549	3549	fine for each violation in an amount consistent with the range
3550	3550	of fines applicable to licensees, and in addition, may impose
3551	3551	a fine in the amount of any gain or economic benefit that was
3552	3552	derived from the violation, and in addition, may impose a fine
3553	3553	in the amount of the commission's costs incurred. Any fines
3554	3554	not paid as ordered shall be enforceable in any court with
3555	3555	competent jurisdiction and proper venue.
3556	3556	(2) Notwithstanding any other provisions of law, the
3557	3557	commission may decline to issue an order requiring any accused
3558	3558	person, firm, corporation, or business entity to cease and
3559	3559	desist from engaging in activities requiring a license under
3560	3560	this chapter when the accused person, firm, corporation, or
3561	3561	business entity is not licensed under this chapter. In this
3562	3562	instance, the commission shall proceed to give appropriate
3563	3563	notice of the violations and hold a hearing thereon. Upon
3564	3564	hearing the case and finding violations, the commission may
3565	3565	impose a fine for each violation in an amount consistent with
3566	3566	the range of fines applicable to licensees, and in addition,
3567	3567	may impose a fine in the amount of any gain or economic
3568	3568	benefit that was derived from the violation, and in addition,
3569	3569	may impose a fine in the amount of the commission's costs
3570	3570	incurred. Any fine or fines not paid as ordered shall be
3571	3571	enforceable in any court with competent jurisdiction and
3572	3572	proper venue.
3573	3573	(d)(e) The commission shall notify the licensee and
3574	3574	qualifying broker in writing regarding the complaint.
3575	3575	1708
3576	3576	1709
3577	3577	1710
3578	3578	1711
3579	3579	1712
3580	3580	1713
3581	3581	1714
3582	3582	1715
3583	3583	1716
3584	3584	1717
3585	3585	1718
3586	3586	1719
3587	3587	1720
3588	3588	1721
3589	3589	1722
3590	3590	1723
3591	3591	1724
3592	3592	1725
3593	3593	1726
3594	3594	1727
3595	3595	1728
3596	3596	1729
3597	3597	1730
3598	3598	1731
3599	3599	1732
3600	3600	1733
3601	3601	1734
3602	3602	1735 HB13 INTRODUCED
3603	3603	Page 63
3604	3604	qualifying broker in writing regarding the complaint.
3605	3605	(e)(f) The commission shall notify the complainant,
3606	3606	licensee, and qualifying broker in writing regarding the
3607	3607	disposition of the complaint."
3608	3608	Section 11. Section 34-27-39 is added to the Code of
3609	3609	Alabama 1975, to read as follows:
3610	3610	§34-27-39
3611	3611	(a) No licensee shall advertise or market as a team,
3612	3612	group, or other affiliation unless actively licensed as a team
3613	3613	by the commission.
3614	3614	(b) The leader of any licensed team shall at a minimum
3615	3615	be a licensed Alabama associate broker.
3616	3616	(c) A broker wishing to license a team must complete
3617	3617	the team license application established by the commission.
3618	3618	The application must be authorized by the leader of the
3619	3619	proposed team and the team leader's qualifying broker. The
3620	3620	application must include the name and license number of all
3621	3621	licensees that will initially be a member of the team.
3622	3622	(d) The commission may establish a one-year or
3623	3623	multi-year team license period.
3624	3624	(e) The original fee for each team license shall be one
3625	3625	hundred dollars ($100) per year or portion of a year remaining
3626	3626	in the respective license period, and the renewal fee for each
3627	3627	team license shall be one hundred dollars ($100) per year for
3628	3628	each year of the license period. Team licenses must be renewed
3629	3629	by September 30 of the final year of a licensing period, or
3630	3630	the team shall be inactivated and subject to reactivation
3631	3631	requirements. The fee to reactivate a team shall be fifty
3632	3632	dollars ($50).
3633	3633	1736
3634	3634	1737
3635	3635	1738
3636	3636	1739
3637	3637	1740
3638	3638	1741
3639	3639	1742
3640	3640	1743
3641	3641	1744
3642	3642	1745
3643	3643	1746
3644	3644	1747
3645	3645	1748
3646	3646	1749
3647	3647	1750
3648	3648	1751
3649	3649	1752
3650	3650	1753
3651	3651	1754
3652	3652	1755
3653	3653	1756
3654	3654	1757
3655	3655	1758
3656	3656	1759
3657	3657	1760
3658	3658	1761
3659	3659	1762
3660	3660	1763 HB13 INTRODUCED
3661	3661	Page 64
3662	3662	dollars ($50).
3663	3663	(f) To dissolve a team, the request must be made as
3664	3664	prescribed by the commission and approved by the team leader
3665	3665	and the team leader's qualifying broker.
3666	3666	(g) To change the name of a team, the fee shall be
3667	3667	fifty dollars ($50), and the request must be made as
3668	3668	prescribed by the commission and approved by the team leader
3669	3669	and the team leader's qualifying broker.
3670	3670	(h) To add or remove a member from a team, the fee
3671	3671	shall be twenty-five dollars ($25) per member who is added or
3672	3672	removed. The request must be made as prescribed by the
3673	3673	commission and approved by the team leader and the team
3674	3674	leader's qualifying broker.
3675	3675	(i) The team leader, the team leader's qualifying
3676	3676	broker, and the company's qualifying broker are all
3677	3677	responsible for supervising team members.
3678	3678	(j) The team leader and the team leader's qualifying
3679	3679	broker are responsible for notifying the team members if a
3680	3680	team member is removed from a team or the team is dissolved or
3681	3681	inactivated.
3682	3682	(k) No person shall be a member on more than one
3683	3683	licensed team.
3684	3684	(l) The commission shall adopt rules addressing teams
3685	3685	and what words may or may not be used in a team name and how
3686	3686	teams may advertise and market.
3687	3687	Section 12. Sections 34-27-81, 34-27-82, 34-27-83,
3688	3688	34-27-84, 34-27-85, and 34-27-86, Code of Alabama 1975, are
3689	3689	amended to read as follows:
3690	3690	"§34-27-81
3691	3691	1764
3692	3692	1765
3693	3693	1766
3694	3694	1767
3695	3695	1768
3696	3696	1769
3697	3697	1770
3698	3698	1771
3699	3699	1772
3700	3700	1773
3701	3701	1774
3702	3702	1775
3703	3703	1776
3704	3704	1777
3705	3705	1778
3706	3706	1779
3707	3707	1780
3708	3708	1781
3709	3709	1782
3710	3710	1783
3711	3711	1784
3712	3712	1785
3713	3713	1786
3714	3714	1787
3715	3715	1788
3716	3716	1789
3717	3717	1790
3718	3718	1791 HB13 INTRODUCED
3719	3719	Page 65
3720	3720	"§34-27-81
3721	3721	As used in this article, the following words shall have
3722	3722	the following meanings:
3723	3723	(1) AGENCY AGREEMENT. A written agreement between a
3724	3724	broker and a client which creates a fiduciary relationship
3725	3725	between the broker and a principal, who is commonly referred
3726	3726	to as a clientconsumer.
3727	3727	(2) BROKER. Any person licensed as a real estate broker
3728	3728	pursuant to Articles 1 and 2 of this chapter.
3729	3729	(3) BROKERAGE AGREEMENT. A specific written agreement
3730	3730	between a brokerage firmreal estate company and a consumer
3731	3731	which establishes a brokerage relationship. The brokerage
3732	3732	agreement shall contain a statement of the terms and
3733	3733	conditions of the brokerage services to be provided.
3734	3734	(4) BROKERAGE SERVICE. Any service, except for rental
3735	3735	or property management services, provided by a broker or
3736	3736	licensee to another person and includes all activities for
3737	3737	which a real estate license is required under Articles 1 and 2
3738	3738	of this chapter.
3739	3739	(5) CONSUMER. A person who obtains information, advice,
3740	3740	or services concerning real estate from a real estate
3741	3741	licenseeCLIENT. A person who has an agency agreement with a
3742	3742	broker for brokerage service, whether he or she is buyer or
3743	3743	seller.
3744	3744	(6) CLIENT. A person who has an agency agreement with a
3745	3745	broker for brokerage service, whether he or she be buyer or
3746	3746	sellerCONSUMER. A person who obtains information, advice, or
3747	3747	services concerning real estate from a real estate licensee .
3748	3748	(7) CUSTOMER. A person who is provided brokerage
3749	3749	1792
3750	3750	1793
3751	3751	1794
3752	3752	1795
3753	3753	1796
3754	3754	1797
3755	3755	1798
3756	3756	1799
3757	3757	1800
3758	3758	1801
3759	3759	1802
3760	3760	1803
3761	3761	1804
3762	3762	1805
3763	3763	1806
3764	3764	1807
3765	3765	1808
3766	3766	1809
3767	3767	1810
3768	3768	1811
3769	3769	1812
3770	3770	1813
3771	3771	1814
3772	3772	1815
3773	3773	1816
3774	3774	1817
3775	3775	1818
3776	3776	1819 HB13 INTRODUCED
3777	3777	Page 66
3778	3778	(7) CUSTOMER. A person who is provided brokerage
3779	3779	services by a broker or licensee but who is not a client of
3780	3780	the broker.
3781	3781	(8) DESIGNATED SINGLE AGENT. An agency agreement in
3782	3782	which two or more licensed individuals under the same
3783	3783	qualifying broker each represent a different party in the
3784	3784	transaction, as designated by the qualifying broker. In this
3785	3785	circumstance, neither the qualifying broker nor other
3786	3786	licensees involved in the transaction shall be assumed to have
3787	3787	imputed knowledge.
3788	3788	(8)(9) DUAL AGENCY. An agency relationshipagreement in
3789	3789	which the same brokerage firm a licensee, with informed written
3790	3790	consent of all parties to a transaction, represents both the
3791	3791	seller and the buyer in the same real estate transaction once
3792	3792	all parties have signed the agreement . Circumstances which
3793	3793	establish a dual agency include, but are not limited to, one
3794	3794	of the following:
3795	3795	a. When two or more licensees licensed under the same
3796	3796	broker each represent a different party to the transaction.
3797	3797	b. When one licensee represents both the buyer and
3798	3798	seller in a real estate transaction.
3799	3799	(10) IMPUTED KNOWLEDGE. Knowledge attributed to a party
3800	3800	because of his or her position, relationship to another party,
3801	3801	or responsibility for another party.
3802	3802	(9)(11) INFORMED CONSENT. A consumer's agreement to
3803	3803	allow something to happen which is based upon full disclosure
3804	3804	of facts needed to choose appropriate brokerage services.
3805	3805	(10)(12) LICENSEE. Any broker, salesperson, or company.
3806	3806	(11) LIMITED CONSENSUAL DUAL AGENT. A licensee who,
3807	3807	1820
3808	3808	1821
3809	3809	1822
3810	3810	1823
3811	3811	1824
3812	3812	1825
3813	3813	1826
3814	3814	1827
3815	3815	1828
3816	3816	1829
3817	3817	1830
3818	3818	1831
3819	3819	1832
3820	3820	1833
3821	3821	1834
3822	3822	1835
3823	3823	1836
3824	3824	1837
3825	3825	1838
3826	3826	1839
3827	3827	1840
3828	3828	1841
3829	3829	1842
3830	3830	1843
3831	3831	1844
3832	3832	1845
3833	3833	1846
3834	3834	1847 HB13 INTRODUCED
3835	3835	Page 67
3836	3836	(11) LIMITED CONSENSUAL DUAL AGENT. A licensee who,
3837	3837	with the written informed consent of all parties to a
3838	3838	contemplated real estate transaction, is engaged as an agent
3839	3839	for both the buyer and seller. Circumstances which establish
3840	3840	dual agency include, but are not limited to, one of the
3841	3841	following:
3842	3842	a. When two or more licensees licensed under the same
3843	3843	broker each represent a different party to the transaction.
3844	3844	b. When one licensee represents both the buyer and
3845	3845	seller in a real estate transaction.
3846	3846	(12)(13) MATERIAL FACT. A fact that is of significance
3847	3847	to a reasonable party which affects the party's decision to
3848	3848	enter into a real estate contract.
3849	3849	(13)(14) QUALIFYING BROKER. A broker under whom a
3850	3850	corporation, partnership, branch office, or lawfully
3851	3851	constituted business organization, as the Legislature may from
3852	3852	time to time provide, is licensed, or a broker licensed to do
3853	3853	business as a sole proprietorship who is responsible for
3854	3854	supervising the acts of the company, or proprietorship and all
3855	3855	real estate licensees licensed therewith.
3856	3856	(14)(15) REAL ESTATE TRANSACTION. The purchase, sale,
3857	3857	lease and rental, option, or exchange of an interest in real
3858	3858	estate.
3859	3859	(15)(16) SINGLE AGENT. A licensee who has an agency
3860	3860	agreement and is engaged by and represents only one party in a
3861	3861	real estate transaction. A single agent includes, but is not
3862	3862	limited to, onemay be only one of the following:
3863	3863	a. Buyer's agent, which means a broker or licensee who
3864	3864	is engaged by and represents only the buyer in a real estate
3865	3865	1848
3866	3866	1849
3867	3867	1850
3868	3868	1851
3869	3869	1852
3870	3870	1853
3871	3871	1854
3872	3872	1855
3873	3873	1856
3874	3874	1857
3875	3875	1858
3876	3876	1859
3877	3877	1860
3878	3878	1861
3879	3879	1862
3880	3880	1863
3881	3881	1864
3882	3882	1865
3883	3883	1866
3884	3884	1867
3885	3885	1868
3886	3886	1869
3887	3887	1870
3888	3888	1871
3889	3889	1872
3890	3890	1873
3891	3891	1874
3892	3892	1875 HB13 INTRODUCED
3893	3893	Page 68
3894	3894	is engaged by and represents only the buyer in a real estate
3895	3895	transaction.
3896	3896	b. Seller's agent, which means a broker or licensee who
3897	3897	is engaged by and represents only the seller in a real estate
3898	3898	transaction.
3899	3899	(16) SUB-AGENT. A licensee who is empowered to act for
3900	3900	another broker in performing real estate brokerage tasks for a
3901	3901	principal, and who owes the same duties to the principal as
3902	3902	the agent of the principal.
3903	3903	(17) TRANSACTION BROKERFACILITATOR. The term has the
3904	3904	same meaning as "Transaction Broker" provided in Act 98-618.
3905	3905	The term also includes a A licensee who assists one or more
3906	3906	parties in a contemplated real estate transaction without
3907	3907	being an agent or fiduciary or advocate for the interest of
3908	3908	that party to a transaction."
3909	3909	"§34-27-82
3910	3910	(a) When engaged in any real estate transaction, the
3911	3911	licensee may act as a single agent, sub-agent, a limited
3912	3912	consensual dual agent, or as a transaction brokerfacilitator.
3913	3913	(b) At the initial contact between a licensee and the
3914	3914	consumer and until such time a brokerlicensee enters into a
3915	3915	specific written agreement to establish an agency relationship
3916	3916	with one or more of the parties to a transaction, the licensee
3917	3917	shall be considered a transaction facilitator and not be
3918	3918	considered an agent of that consumer. An agency relationship
3919	3919	shall not be assumed, implied, or created without a written
3920	3920	bilateral agreement signed by the licensee and the consumer
3921	3921	establishing the terms of the agency relationship.
3922	3922	(c) As soon as reasonably possible and before any
3923	3923	1876
3924	3924	1877
3925	3925	1878
3926	3926	1879
3927	3927	1880
3928	3928	1881
3929	3929	1882
3930	3930	1883
3931	3931	1884
3932	3932	1885
3933	3933	1886
3934	3934	1887
3935	3935	1888
3936	3936	1889
3937	3937	1890
3938	3938	1891
3939	3939	1892
3940	3940	1893
3941	3941	1894
3942	3942	1895
3943	3943	1896
3944	3944	1897
3945	3945	1898
3946	3946	1899
3947	3947	1900
3948	3948	1901
3949	3949	1902
3950	3950	1903 HB13 INTRODUCED
3951	3951	Page 69
3952	3952	(c) As soon as reasonably possible and before any
3953	3953	confidential information is disclosed to any other person by a
3954	3954	licensee, the licensee shall provide a written disclosure form
3955	3955	to a consumer for signature describing the alternative types
3956	3956	of brokerage services, as identified in subsection (a), that
3957	3957	are available to clients and customers of real estate
3958	3958	brokerage companies. The licensee shall also inform a consumer
3959	3959	as to the specific types of brokerage services that are
3960	3960	provided by his or her company. A broker shall not be required
3961	3961	to offer or engage in any one or in all of the alternative
3962	3962	brokerage arrangementsservices specified in subsection (a).
3963	3963	The licensee will provide a written form to the consumer for
3964	3964	their signature describing the alternative types of brokerage
3965	3965	arrangementsservices available. All rental or property
3966	3966	management services are excluded from the requirements of this
3967	3967	subsection.
3968	3968	(d) A licensee shall not be required to comply with the
3969	3969	provisions of subsection (c) when engaged in transactions with
3970	3970	any corporation, non-profitnonprofit corporation, professional
3971	3971	corporation, professional association, limited liability
3972	3972	company, partnership, any partnership created under the
3973	3973	Uniform Partnership Act (commencing at Section 10-8A-101),
3974	3974	real estate investment trust, business trust, charitable
3975	3975	trust, family trust, or any governmental entity in
3976	3976	transactions involving real estate.
3977	3977	(e) After disclosure, the consumer may make an
3978	3978	affirmative election of a specific type of brokerage
3979	3979	arrangementservice that is available from the real estate
3980	3980	brokerage company. The brokerage agreement shall contain a
3981	3981	1904
3982	3982	1905
3983	3983	1906
3984	3984	1907
3985	3985	1908
3986	3986	1909
3987	3987	1910
3988	3988	1911
3989	3989	1912
3990	3990	1913
3991	3991	1914
3992	3992	1915
3993	3993	1916
3994	3994	1917
3995	3995	1918
3996	3996	1919
3997	3997	1920
3998	3998	1921
3999	3999	1922
4000	4000	1923
4001	4001	1924
4002	4002	1925
4003	4003	1926
4004	4004	1927
4005	4005	1928
4006	4006	1929
4007	4007	1930
4008	4008	1931 HB13 INTRODUCED
4009	4009	Page 70
4010	4010	brokerage company. The brokerage agreement shall contain a
4011	4011	statement of the terms and conditions of the brokerage
4012	4012	services that the brokercompany will provide. In the absence
4013	4013	of a signed brokerage agreement between the parties, the
4014	4014	transaction brokeragefacilitator relationship shall remain in
4015	4015	effect.
4016	4016	(f) When serving as a transaction brokerfacilitator,
4017	4017	the duties of the licensee to all the parties to a real estate
4018	4018	transaction are limited to those which are enumerated in
4019	4019	Section 34-27-84. A signed brokerage agreement between the
4020	4020	parties or, in the absence of a signed brokerage agreement,
4021	4021	the continuation of the transaction brokeragefacilitator
4022	4022	relationship, shall constitute informed consent by the
4023	4023	consumer as to the services the consumer shall receive from
4024	4024	the broker.
4025	4025	(g) Disclosure forms shall be provided to buyers and
4026	4026	sellers. All real estate brokerage firmscompanies operating
4027	4027	within the State of Alabama shall use the same agency
4028	4028	disclosure forms. Disclosure forms describing the alternative
4029	4029	types of brokerage services identified above shall be written
4030	4030	by the Alabama Real Estate Commission.
4031	4031	(h) Each offer to purchase shall prominently display a
4032	4032	representation disclosure clause in the following form,
4033	4033	completed and initialed as indicated:
4034	4034	The listing licensee, _____________, is:
4035	4035	□ An agent of the seller.
4036	4036	□ A dual agent.
4037	4037	□ Assisting the seller as a transaction facilitator.
4038	4038	The selling licensee,_______________, is:
4039	4039	1932
4040	4040	1933
4041	4041	1934
4042	4042	1935
4043	4043	1936
4044	4044	1937
4045	4045	1938
4046	4046	1939
4047	4047	1940
4048	4048	1941
4049	4049	1942
4050	4050	1943
4051	4051	1944
4052	4052	1945
4053	4053	1946
4054	4054	1947
4055	4055	1948
4056	4056	1949
4057	4057	1950
4058	4058	1951
4059	4059	1952
4060	4060	1953
4061	4061	1954
4062	4062	1955
4063	4063	1956
4064	4064	1957
4065	4065	1958
4066	4066	1959 HB13 INTRODUCED
4067	4067	Page 71
4068	4068	The selling licensee,_______________, is:
4069	4069	□ An agent of the buyer.
4070	4070	□ A dual agent.
4071	4071	□ Assisting the buyer as a transaction facilitator.
4072	4072	(h)(i) Nothing in this section shall prohibit the
4073	4073	consumer from entering into a written contract with a
4074	4074	qualifying broker which contains provisions for services not
4075	4075	specifically identified in the written disclosure form."
4076	4076	"§34-27-83
4077	4077	Any qualifying broker acting in a real estate
4078	4078	transaction shall adopt a written agency disclosure office
4079	4079	policy which specifically enumerates the types of brokerage
4080	4080	service arrangements services a licensee may offer or accept.
4081	4081	(a) The qualifying broker for each brokeragereal estate
4082	4082	company shall provide every licensee a copy of the agency
4083	4083	disclosure policy regarding the types of brokerage services
4084	4084	offered by their company. This policy shall be explained to
4085	4085	all licensees at least once a year.
4086	4086	(b) A form acknowledging receipt of the agency
4087	4087	disclosure office policy statement and a satisfactory
4088	4088	explanation of its contents shall be signed by each licensee
4089	4089	and a copy retained by the brokeragereal estate company for
4090	4090	three years."
4091	4091	"§34-27-84
4092	4092	(a) Licensees shall have all of the following
4093	4093	obligations to all parties in a real estate transaction:
4094	4094	(1) To provide brokerage services to all parties to the
4095	4095	transaction honestly and in good faith.
4096	4096	(2) To exercise reasonable skill and care in providing
4097	4097	1960
4098	4098	1961
4099	4099	1962
4100	4100	1963
4101	4101	1964
4102	4102	1965
4103	4103	1966
4104	4104	1967
4105	4105	1968
4106	4106	1969
4107	4107	1970
4108	4108	1971
4109	4109	1972
4110	4110	1973
4111	4111	1974
4112	4112	1975
4113	4113	1976
4114	4114	1977
4115	4115	1978
4116	4116	1979
4117	4117	1980
4118	4118	1981
4119	4119	1982
4120	4120	1983
4121	4121	1984
4122	4122	1985
4123	4123	1986
4124	4124	1987 HB13 INTRODUCED
4125	4125	Page 72
4126	4126	(2) To exercise reasonable skill and care in providing
4127	4127	brokerage services to all parties.
4128	4128	(3) To keep confidential any information given to the
4129	4129	licensee in confidence, or any information obtained by the
4130	4130	licensee that the licensee knows a reasonable individual would
4131	4131	want to keep confidential, unless disclosure of this
4132	4132	information is required by law, violates a fiduciary duty to a
4133	4133	client, becomes public knowledge, or is authorized by the
4134	4134	party in writing , or the information becomes public knowledge,
4135	4135	or the failure to disclose the information violates a
4136	4136	fiduciary duty to a client .
4137	4137	(4) To account for all property coming into the
4138	4138	possession of the licensee that belongs to any party to the
4139	4139	real estate transaction.
4140	4140	(5) When assisting a party in the negotiation of a real
4141	4141	estate transaction, to present all written offers in a timely
4142	4142	and truthful manner.
4143	4143	(6) To act on behalf of the licensee or his or her
4144	4144	immediate family, or on behalf of any other individual,
4145	4145	organization, or business entity in which the licensee has a
4146	4146	personal interest only with prior timely written disclosure of
4147	4147	this interest to all parties to the transaction.
4148	4148	(b) A licensee may provide requested information which
4149	4149	affects a transaction to any party who requests the
4150	4150	information, unless disclosure of the information is
4151	4151	prohibited by law or in this article.
4152	4152	(c) When accepting an agreement to list an owner's
4153	4153	property for sale, the broker or his or her licensee shall, at
4154	4154	a minimum, accept delivery of and present to the consumer all
4155	4155	1988
4156	4156	1989
4157	4157	1990
4158	4158	1991
4159	4159	1992
4160	4160	1993
4161	4161	1994
4162	4162	1995
4163	4163	1996
4164	4164	1997
4165	4165	1998
4166	4166	1999
4167	4167	2000
4168	4168	2001
4169	4169	2002
4170	4170	2003
4171	4171	2004
4172	4172	2005
4173	4173	2006
4174	4174	2007
4175	4175	2008
4176	4176	2009
4177	4177	2010
4178	4178	2011
4179	4179	2012
4180	4180	2013
4181	4181	2014
4182	4182	2015 HB13 INTRODUCED
4183	4183	Page 73
4184	4184	a minimum, accept delivery of and present to the consumer all
4185	4185	offers, counteroffers, and addenda to assist the consumer in
4186	4186	negotiating offers, counteroffers, and addenda, and to answer
4187	4187	the consumer's questions relating to the transaction."
4188	4188	"§34-27-85
4189	4189	(a) In addition to the duties enumerated in Section
4190	4190	34-27-84, a licensee shall provide all of the following
4191	4191	services to clients:
4192	4192	(1) Loyally represent the best interests of the client
4193	4193	by placing the interests of the client ahead of the interests
4194	4194	of any other party, unless loyalty to a client violates the
4195	4195	duties of the licensee to other parties under Section
4196	4196	34-27-84, or is otherwise prohibited by law.
4197	4197	(2) Disclose to the client all information known by the
4198	4198	licensee that is material to the transaction and not
4199	4199	discoverable by the client through reasonable investigation
4200	4200	and observation, except for confidential information as
4201	4201	provided in subdivision (a)(3) of subsection (a) of Section
4202	4202	34-27-84. A licensee shall have no affirmative duty to
4203	4203	discover the information.
4204	4204	(3) Fulfill any obligation required by the agency
4205	4205	agreement, and any lawful instructions of the client that are
4206	4206	within the scope of the agency agreement, that are not
4207	4207	inconsistent with other duties as enumerated in this article.
4208	4208	(b) A brokerlicensee who represents more than one
4209	4209	client in a real estate transaction owes the duties as
4210	4210	specified in subsection (a) to each client, except where the
4211	4211	duties to one client will violate the fiduciary duties of the
4212	4212	licensee to other clients.
4213	4213	2016
4214	4214	2017
4215	4215	2018
4216	4216	2019
4217	4217	2020
4218	4218	2021
4219	4219	2022
4220	4220	2023
4221	4221	2024
4222	4222	2025
4223	4223	2026
4224	4224	2027
4225	4225	2028
4226	4226	2029
4227	4227	2030
4228	4228	2031
4229	4229	2032
4230	4230	2033
4231	4231	2034
4232	4232	2035
4233	4233	2036
4234	4234	2037
4235	4235	2038
4236	4236	2039
4237	4237	2040
4238	4238	2041
4239	4239	2042
4240	4240	2043 HB13 INTRODUCED
4241	4241	Page 74
4242	4242	licensee to other clients.
4243	4243	(c) A brokerlicensee may provide brokerage services as
4244	4244	a limited consensual dual agent only with the prior written,
4245	4245	informed consent of all clients of the brokerlicensee in the
4246	4246	transaction."
4247	4247	"§34-27-86
4248	4248	(a) A client is not liable for a misrepresentation made
4249	4249	by a brokerlicensee in connection with the brokerlicensee
4250	4250	providing brokerage services unless the client knows or should
4251	4251	have known of the misrepresentation or the brokerlicensee is
4252	4252	repeating a misrepresentation made by the client to the
4253	4253	brokerlicensee.
4254	4254	(b) A licensee shall not be liable for providing false
4255	4255	information to a party in a real estate transaction if the
4256	4256	false information was provided to the licensee by a client of
4257	4257	the licensee or by a customer or by another licensee unless
4258	4258	the licensee knows or should have known that the information
4259	4259	was false."
4260	4260	Section 13. Sections 1, 3, 4, 7, 8, 10, and 12 shall
4261	4261	become effective on October 1, 2024; Sections 5, 6, 9, and 11
4262	4262	shall become effective on October 1, 2026, and shall apply to
4263	4263	licenses issued or renewed on or after that date; and Section
4264	4264	2 shall become effective on October 1, 2027, and shall apply
4265	4265	to licenses issued or renewed on or after that date.
4266	4266	2044
4267	4267	2045
4268	4268	2046
4269	4269	2047
4270	4270	2048
4271	4271	2049
4272	4272	2050
4273	4273	2051
4274	4274	2052
4275	4275	2053
4276	4276	2054
4277	4277	2055
4278	4278	2056
4279	4279	2057
4280	4280	2058
4281	4281	2059
4282	4282	2060
4283	4283	2061
4284	4284	2062
4285	4285	2063
4286	4286	2064
4287	4287	2065
4288	4288	2066