Alabama House Bill HB13 Latest Draft

                            HB13INTRODUCED
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HB13
U28MGDG-1
By Representative Hollis
RFD: Commerce and Small Business
First Read: 05-Feb-24
2024 Regular Session
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6 U28MGDG-1 10/16/2023 SLU (L)bm 2023-3153
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2024 Regular Session
SYNOPSIS:
Under existing law pertaining to licensing real
estate companies, brokers, and salespersons, there is
no provision limiting the number of co-brokerage
agreements a licensed out-of-state broker may enter
into with state licensed brokers.
Under existing law, there is no limit on the
duration of a residential listing agreement. 
Under existing law, there are no specific
disclosures required of licensees dealing in equitable
interests in a contract for purchase and sale of
residential property.
This bill would provide certain requirements
pertaining to training, qualifications, licensure, and
license renewal for licensed real estate companies,
brokers, salespersons, teams, schools that offer real
estate training courses, and applicants for licensure.
This bill would provide certain restrictions on
transactions between licensed out-of-state co-brokers
and licensees of this state.
This bill would provide that the Alabama Real
Estate Commission may impose penalties for a licensee's
failure to disclose certain aspects of transactions
involving the sale or assignment of an equitable
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involving the sale or assignment of an equitable
interest in a contract for the purchase and sale of
residential real estate.
This bill would further provide that the Alabama
Real Estate Commission may impose penalties for certain
conduct by licensees including, but not limited to, the
failure to specify the expiration date of a residential
listing agreement or for creating an encumbrance on the
property that is the subject of a residential listing
agreement by recording the listing agreement with a
probate officer.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to licensed real estate professionals and
companies; to amend Sections 34-27-2, 34-27-3, 34-27-6,
34-27-8, 34-27-32, 34-27-33, 34-27-34, 34-27-35, 34-27-36,
34-27-81, 34-27-82, 34-27-83, 34-27-84, 34-27-85, and
34-27-86, Code of Alabama 1975; to add Section 34-27-39; to
provide certain requirements related to training,
qualifications and licensure of real estate companies,
brokers, and salespersons; to provide restrictions on licensed
out-of-state co-broker transactions in the state; to impose
penalties for certain licensee conduct including certain
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penalties for certain licensee conduct including certain
conduct related to the sale or assignment of an equitable
interest in a residential purchase and sale agreement and for
the failure to provide a specified expiration date of a
residential listing agreement; and to make nonsubstantive,
technical revisions to update the existing code language to
current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 34-27-2, and 34-27-3, Code of
Alabama 1975, are amended to read as follows:
"§34-27-2
(a) For purposes of Articles 1 and 2 of this chapter,
the following terms shall have the respective following
meanings ascribed by this section :
(1) APARTMENT. A building or complex with more than
four individual units built primarily for residential leasing
purposes.
(1)(2) ASSOCIATE BROKER. Any broker other than a
qualifying broker.
(2)(3) BROKER. Any person licensed as a real estate
broker under Articles 1 and 2 of this chapter.
(3)(4) COMMISSION. The Alabama Real Estate Commission,
except where the context requires that it means the fee paid
to a broker or salesperson.
(4)(5) COMMISSIONER. A member of the commission.
(5)(6) COMPANY. Any sole proprietorship, corporation,
partnership, branch office, or lawfully constituted business
organization as the Legislature may provide for from time to
time, which is licensed as a company under Articles 1 and 2 of
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time, which is licensed as a company under Articles 1 and 2 of
this chapter.
(6)(7) ENGAGE. Contractual relationships between a
qualifying broker and an associate broker or salesperson
licensed under him or her whether the relationship is
employer-employee, independent contractor, or otherwise.
(8) EQUITABLE INTEREST IN A CONTRACT or EQUITABLE
INTEREST. Any interests or rights in a contract or agreement
to purchase residential real estate held by a party to the
contract or agreement.
(7)(9) INACTIVE LICENSE. A license which is being held
by the commission office by law, order of the commission, at
the request of the licensee, or which is renewable but is not
currently valid because of failure to renew.
(8)(10) LICENSEE. Any broker, salesperson, or company.
(9)(11) LICENSE PERIOD. That period of time beginning
on October 1 of a year designated by the commission to be the
first year of a license period and ending on midnight
September 30 of the year designated by the commission as the
final year of that license period.
(12) LISTING AGREEMENT. An agreement between a company
and an owner by which the company agrees to assist the owner
in the sale of the owner's real property in exchange for a
fee. The definition includes agreements giving the company the
right to list or market the owner's real property upon the
owner's future decision to sell the property.
(13) OWNER. A person or entity legally deeded real
property.
(10)(14) PERSON. A natural person.
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(10)(14) PERSON. A natural person.
(11)(15) PLACE OF BUSINESS.
a. A licensed broker living in a rural area of this
state who operates from his or her home, provided that he or
she sets up and maintains an office for the conduct of the
real estate business, which shall not be used for living
purposes or occupancy other than the conduct of the real
estate business. The office shall be used by the broker only
and not as a place of business from which any additional
licensee operates under his or her license. The office shall
have a separate business telephone, separate entrance, and be
properly identified as a real estate office.
b. All licensees located within the city limits or
police jurisdiction of a municipality shall operate from a
separate office located in the city limits or police
jurisdiction. The office shall have a business telephone, meet
all other regulations of the Real Estate Commission, and be
properly identified as a real estate office. Hardship cases
may be subject to waiver of this regulation upon application
and approval by the commission.
c. All business records and files shall be kept at the
place of business as required by law or Real Estate Commission
rules.
(16) PRINCIPAL BROKER. As used in other states, having
the same meaning as "qualifying broker" in this state.
(12)(17) QUALIFYING BROKER. A broker under whom a sole
proprietorship, corporation, partnership, branch office, or
lawfully constituted business organization as the Legislature
may from time to time provide is licensed, or a broker
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may from time to time provide is licensed, or a broker
licensed as a company to do business as a sole proprietorship
who is responsible for supervising the acts of the company or
proprietorship and all real estate licensees licensed
therewith.
(13)(18) RECOVERY FUND. The Alabama Real Estate
Recovery Fund.
(19) RESIDENTIAL. Pertaining to real property located
in the state which is used primarily for personal, family, or
household purposes.
(14)(20) SALESPERSON. Any person licensed as a real
estate salesperson under Articles 1 and 2 of this chapter.
(21) TEAM. Licensees within the same company who group
together to share consumers, resources, knowledge, or
commissions.
(b) The licensing requirements of Articles 1 and 2 of
this chapter shall not apply to any of the following persons
and transactions:
(1) Any owner in the managing of, or in consummating a
real estate transaction involving, his or her own real estate
or the real estate of his or her spouse or child or parent.
(2) An attorney-at-law performing his or her duties as
an attorney-at-law.
(3) Persons acting without compensation and in good
faith under a duly executed power of attorney authorizing the
consummation of a real estate transaction.
(4) Persons or a state or federally chartered financial
institution acting as a receiver, trustee, administrator,
executor, or guardian; or acting under a court order or under
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executor, or guardian; or acting under a court order or under
authority of a trust instrument or will.
(5) Public officers performing their official duties.
(6) Persons performing general clerical or
administrative duties for a broker so long as the person does
not physically show listed property.
(7) Persons acting as the manager for an apartment
building or complex. However, this exception shall not apply
to a person acting as an on-site manager of a condominium
building or complex.
(8) Persons licensed as time-share sellers under
Article 3 of this chapter performing an act consistent with
that article.
(9) Transactions involving the sale, lease, or transfer
of cemetery lots." 
"§34-27-3
(a) A licensed principal broker of another state may
act as co-broker , whether in sales or lease transactions, with
a licensed qualifying broker of this state by executing a
written agreement specifying each parcel of property covered
by the agreement if the state in which the nonresident broker
is licensed offers the same privileges to licensees of this
state. Co-brokerage agreements are limited to three
transactions per calendar year, per licensed out-of-state
principal broker. Transactions may include multiple properties
if the properties are part of the same portfolio. No licensed
out-of-state principal broker shall use co-brokerage
agreements to engage in transactions totaling more than fifty
million dollars ($50,000,000) in any one calendar year.
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million dollars ($50,000,000) in any one calendar year.
(b) Whenever an Alabama qualifying broker enters into a
co-brokerage agreement with a nonresidentlicensed out-of-state
principal broker to perform in Alabama any of the acts
described in Section 34-27-30 , the Alabama qualifying broker
shall file within 10 days with the commission a copy of each
such written agreement not more than 10 days after the
agreement is signed by all parties . By signing the agreement,
the nonresidentlicensed out-of-state principal broker agrees
to abide by Alabama law, and the rules and regulations of the
commission; and further agrees that civil actions may be
commenced against him or her in any court of competent
jurisdiction in any county of this state in which a claim may
arise.
(c) All co-brokerage agreements with licensed
out-of-state co-brokers shall include all of the following
provisions:
(1) The Alabama broker shall require a listing or joint
listing of the property involved.
(2) The agreement shall specify all material terms,
including, but not limited to, the financial terms.
(3) The showing of property located in Alabama and any
negotiations pertaining to it shall be supervised by the
Alabama broker.
(4) The name of the Alabama broker shall appear in all
advertising of real property located in the state.
(5) The Alabama broker shall be liable for all acts of
the licensed out-of-state broker, as well as his or her own
acts, arising from the execution of the co-brokerage
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acts, arising from the execution of the co-brokerage
agreement.
(6) The Alabama broker shall verify that the licensed
out-of-state broker is a licensed principal broker in another
state.
(7) Any earnest money deposited pursuant to the
agreement must be held in escrow by the Alabama broker unless
both the buyer and the seller agree in writing to relieve the
Alabama broker of this responsibility. "
Section 2. Section 34-27-6, Code of Alabama 1975, is
amended to read as follows:
"§34-27-6
(a) For purposes of this section and rules adopted
pursuant thereto, the following terms shall have the following
meanings:
(1) ACCREDITED SCHOOL. Any nonprofit college or
university meeting the standards of an accrediting agency
recognized by the U.S. Department of Education and offering
any commission-approved course.
(1)(2) ADMINISTRATOR. A person designated by a
principal school or branch school licensed by the commission
and approved by the commission to be the person responsible to
the commission for all acts governed by this chapter and
applicable rules which govern the operation of schools.
(2)(3) APPROVED COURSE. Any course of instruction
approved by the commission that satisfies commission
requirements for prelicense education, postlicense education,
or continuing education.
(3) APPROVED SCHOOL. Any proprietary educational
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(3) APPROVED SCHOOL. Any proprietary educational
institution offering only commission approved continuing
education courses and any accredited college or university
that offers any commission approved course.
(4) BRANCH SCHOOL. Any school under the ownership of a
principal school which offers commission approved courses at a
permanent location.
(5) CE-ONLY SCHOOL. Any private educational institution
or organization offering only commission-approved continuing
education courses.
(6) CONTINUING EDUCATION. Any professional course
required to renew or activate a license which shall be a
minimum of one hour upon approval of the commission.
(7) DISTANCE EDUCATION. Programs whereby instruction
does not take place in a traditional classroom setting but
rather where teacher and student are apart by distance or by
time and instruction takes place through other media.
(5)(8) INSTRUCTIONAL SITE. Any physical place where
commission-approved instruction is conducted apart from the
principal school or branch school.
(6)(9) INSTRUCTOR. A person approvedlicensed by the
commission to teach approved courses in the classroom or by
distance education.
(7)(10)LICENSEDPRELICENSE SCHOOL. Any proprietary
school that is licensed by the commission and bonded,
including any for-profit college, that offers commission -
approved prelicense courses or postlicense courses, or both,
only after being licensed and bonded by the commission .
Prelicense schools may also offer continuing education
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Prelicense schools may also offer continuing education
courses.
(8)(11) PRINCIPAL SCHOOL. Any institution or
organization which is the primary school and not a branch
school that is approved and is licensed by the commission.
(9) PROPRIETARY SCHOOL. Any school that is not an
accredited college or university and which offers commission
approved prelicense courses or postlicense courses, or both,
only after being licensed and bonded by the commission. Each
branch school shall be licensed separately.
(b) The commission shall approve and regulate schools
that offer commission approved prelicense, postlicense, and
continuing education courses. The commission shall be the
board, commission, or agency with have the sole and exclusive
authority to license proprietaryand regulate schools and their
branches for the limited purpose of their offerings of
commission approved prelicense courses or postlicense courses,
or boththat offer commission-approved prelicense and
continuing education courses .
(c)(1) The commission shall require proprietary require
prelicense principal schools to furnishobtain a surety bond
issued by a surety company authorized to do business in
Alabama, payable to the commission in the amount of an amount
not to exceed twenty thousand dollars ($20,000) with a surety
company authorized to do business in Alabama, which bond shall
provide. The bond shall provide that the bond obligor therein
shall pay up toan amount not to exceed twenty thousand dollars
($20,000) in the aggregate sum of all judgments which shall be
recovered against the school for damages arising from the
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recovered against the school for damages arising from the
school's collection of tuition or fees, or both, from
students, but failing to provide the complete instruction for
which suchthe tuition or fees were collected. 
(2) The bond shall be obtained by the school and shall
also cover any branch schools named in the bond or any
endorsement or amendment of or to the bond.
(3) The bond shall remain in effect as long as the
school is licensed. In the event the bond is revoked or
cancelledcanceled by the surety company, the school shall have
10 days after cancellation or revocation to obtain a new bond
and file it the bond with the commission. Failure to maintain
a bond shall result in the immediate suspension of the
licenses of the school and all of its branches. 
The bond shall be provided by the school and shall also
cover any branch schools named in the bond or any endorsement
or amendment thereto.
(d)(1) The commission shall charge a license fee for
each licensedprelicense principal school and shall charge a
fee for each branch school in the amount of two hundred fifty
dollars ($250) per year for each year or portion of a year
remaining in the respective license period. The renewal fee
for each school licenseprelicenseprincipal and branch school
shall be one hundred twenty-five dollars ($125) for each year
of the license period.
(2) The commission shall charge a license fee for each
CE-only school in the amount of one hundred dollars ($100) per
year for each year or remaining portion of a year in any
license period. The renewal fee for each CE-only school shall
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license period. The renewal fee for each CE-only school shall
be fifty dollars ($50) for each year of any license period.
(e)(1) The commission shall require all schools to name
and have approvedlicensed by the commission a n school
administrator who shall be responsible to the commission for
all actions of his or her respective school.
(2) Each administrator shall pay a license fee in the
amount of one hundred dollars ($100) per year for each year or
remaining portion of a year of any license period. The renewal
fee for each administrator shall be fifty dollars ($50) for
each year of the license period.
(f) PrincipalEach schoolsand branch school shall be
clearly identified by signage which shall indicate the name of
the schoolas in a manner appropriate for theits location. The
signage shall set out the name of the principal school. Branch
schools shall be clearly identified by signage as appropriate
for the location. The signageFor branch schools the signage
shall set out the name of the branch school and the name of
the principal school.
(g) The commission shall have the authority to may
reprimand, fine, suspend for a period up to two years, or
revoke the license or approval of any school, administrator,
or instructor for any violation of this section or any rule of
the commission. The fine shall be not less than one hundred
dollars ($100) nor moregreater than two thousand five hundred
dollars ($2,500) five thousand dollars ($5,000) per
countviolation.
(h) The commission shall approve, sponsor, contract for
or conduct, or assist in sponsoring or conducting , real estate
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or conduct, or assist in sponsoring or conducting , real estate
courses for licensees, may charge fees, and may incur and pay
the necessary related expenses in connection therewith .
(i)(1) The commission shall approvelicense and regulate
instructors who teach the commission -approved prelicense ,
postlicense, and continuing education courses. The commission
shall establish and collect fees as determined necessary	, from
licensed instructors who teach commission-approved courses, in
an amount not to exceed fifty dollars ($50) per instructor
annually, to approved instructors who teach commission
approved courses .
(2) The commission shall establish a continuing
education requirement for all active prelicense instructors.
(j)(1) An instructor, administrator, or school may
request that the commission issue or change its license to
inactive status. An instructor, administrator, or school
licensee whose license status is inactive shall be prohibited
from engaging in any of the following:
a. Teaching commission-approved courses if the licensee
is an instructor.
b. Offering commission-approved courses if the licensee
is a school.
c. Performing any duties of an administrator if the
licensee is an administrator, including, but not limited to,
registering students, advertising the school, reporting course
schedules to the commission, or entering student credit for
completed courses.
(2) The inactive license of an instructor,
administrator, or school must be renewed in the same manner as
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administrator, or school must be renewed in the same manner as
an active license for an instructor, administrator, or school.
(3) A prelicense instructor whose license status is
inactive for three years or less and who renews his or her
license while its status is inactive may activate his or her
license for the first time during any license period by
meeting both of the following requirements:
a. Completing any continuing education requirement for
licensed instructors that remains incomplete from the previous
license period.
b. Paying a license activation fee.
c. If the license remains inactive for longer than
three years, the prelicense instructor must take required
training before activating his or her license. Once the
license is activated, a prelicense instructor will be
responsible for completing the then current continuing
education coursework requirement to renew the active license
for the next license period.
(4) In addition to any other requirements provided in
this section, any instructor, administrator, or a school which
is seeking to change its license status from inactive to
active shall be required to pay a license activation fee in
the amount of fifty dollars ($50) per license.
(k) An active prelicense instructor with an inactive
broker license must remain current with continuing education
requirements for active brokers as well as the continuing
education requirements for active prelicense instructors.
(l)(1) All education licenses and approvals shall
expire at midnight on September 30 of the final year of each
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expire at midnight on September 30 of the final year of each
license period. Each prelicense instructor must complete
required continuing education courses and provide proof of
completion to the commission on or before September 30 of the
final year of each license period.
(2) The continuing education coursework requirement
shall apply to each two-year education renewal. Coursework
hours completed in excess of the requirement shall not be
applicable to any subsequent renewal.
(3) An inactive status license of a prelicense
instructor shall be renewed in the same manner as for an
active prelicense instructor except that continuing education
coursework shall not be required while the license remains
inactive.
(m) Any prelicense instructor, administrator, or school
that fails to renew its license by the September 30 deadline
shall incur a late fee in the amount of two hundred dollars
($200) per license as of October 1 of the first year of the
new license period.
(n)(1) A prelicense instructor, administrator, or
school may renew an expired license during the twelve-month
period following the September 30 renewal deadline, provided
that the licensee shall not engage in any licensed activity
until the license is renewed.
(2) After the last day of the twelfth month following
the September 30 renewal deadline, an expired license shall
lapse and shall be subject to all requirements applicable to
an original license.
(3) The commission may allow late renewal of a lapsed
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(3) The commission may allow late renewal of a lapsed
license upon a determination of hardship, provided that all
required fees are paid.
(j)(o)(1) The commission shall approve courses and
establish and collect fees as determineddeemed necessary, not
to exceed one hundred dollars ($100) per application, to
review each course.
(2) a. The commission may certify synchronous distance
education courses, and establish and collect fees deemed
necessary, in an amount not to exceed four hundred dollars
($400) per application.
b. The commission shall consider synchronous distance
education courses for certification based on the commission's
analysis of all of the following aspects of the course of
which it is part:
1. The course or program mission statement.
2. Course design.
3. Interactivity.
4. Delivery.
5. Equipment.
6. The learning environment.
7. Student support services.
8. Educational effectiveness and assessment of student
learning outcomes.
9. Commitment to ongoing support of the course.
(k)(p) The commission shall establish one-year or
multi-year approvallicense periods for schools, instructors,
administrators, and courses. Approval and license License
periods shall run from October 1 of the first year of the
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periods shall run from October 1 of the first year of the
approvallicense period through September 30 of the final year
of the approvallicense period.
(l)(q) The commission shall promulgateadopt rules and
regulations as necessary to accomplish the purpose of this
section in accordance with the Administrative Procedure Act."
Section 3. Section 34-27-8, Code of Alabama 1975, is
amended to read as follows:
"§34-27-8
(a) A majority of the commission members shall
constitute a quorum for the conduct of commission business.
The commission may adopt and enforce all rules and regulations
pursuant to the state administrative procedure statutes
necessary for the administration of this chapter, and to
otherwise do all things necessary and convenient for effecting
this chapter.
(b) In addition to the powers granted in this section,
the commission may adopt and enforce rules and regulations
governing the requirements of agency disclosure by licensed
brokers and salespersons.
(c) Each offer to purchase prepared after August 1,
1998, shall have prominently displayed the following AGENCY
DISCLOSURE clause which shall be completed and initialed as
indicated:
The listing company _________ is:
(Two blocks may be checked)
____ An agent of the seller.
____ An agent of the buyer.
____ An agent of both the seller and buyer and is
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____ An agent of both the seller and buyer and is
acting as a limited consensual dual agent.
____ Assisting the _____ buyer _____ seller as a
transaction broker.
The selling company _________ is:
(Two blocks may be checked)
____ An agent of the seller.
____ An agent of the buyer.
____ An agent of both the seller and buyer and is
acting as a limited consensual dual agent.
____ Assisting the _____ buyer _____ seller as a
transaction broker. "
Section 4. Section 34-27-32, Code of Alabama 1975, is
amended to read as follows:
"§34-27-32
(a) A license for a broker or a salesperson shall be
registered to a specific real estate office and shall be
issued only to, and held only by, a person who meets all of
the following requirements:
(1) Is trustworthy and competent to transact the
business of a broker or salesperson in a manner that
safeguards the interest of the public.
(2) Is a person whose application for real estate
licensure has not been rejected in any state on any grounds
other than failure to pass a written examination within the
two years prior to the application for real estate licensure
with Alabama. If the applicant's rejection for real estate
licensure in any state is more than two years from the date of
application for licensure with Alabama, then the applicant may
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Page 20
application for licensure with Alabama, then the applicant may
not be issued an Alabama real estate license without the
approval of the commissioners.
(3) Is a person whose real estate license has not been
revoked in any state within the two years prior to application
for real estate licensure with Alabama. If the applicant's
real estate licensure revocation in any state, including
Alabama, is more than two years from the date of application
for licensure with Alabama then the applicant may not be
issued an Alabama real estate license without the approval of
the commissioners.
(4) Is at least 19 years oldof age.
(5) Is a citizen of the United States or, if not a
citizen of the United States, a person who is legally present
in the United States with appropriate documentation from the
federal government, or is an alien with permanent resident
status.
(6) Is a person who, if a nonresident, agrees to sign
an affidavit stating the following and in the following form:
"I, as a nonresident applicant for a real estate
license and as a licensee, agree that the Alabama Real Estate
Commission shall have jurisdiction over me in any and all of
my real estate related activities the same as if I were an
Alabama resident licensee. I agree to be subject to
investigations and disciplinary actions the same as Alabama
resident licensees. Further, I agree that civil actions may be
commenced against me in any court of competent jurisdiction in
any county of the State of Alabama.
"I hereby appoint the Executive Director or the
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"I hereby appoint the Executive Director or the
Assistant Executive Director of the Alabama Real Estate
Commission as my agent upon whom all disciplinary, judicial,
or other process or legal notices may be served. I agree that
any service upon my agent shall be the same as service upon me
and that certified copies of this appointment shall be deemed
sufficient evidence and shall be admitted into evidence with
the same force and effect as the original might be admitted. I
agree that any lawful process against me which is served upon
my agent shall be of the same legal force and validity as if
personally served upon me and that this appointment shall
continue in effect for as long as I have any liability
remaining in the State of Alabama. I understand that my agent
shall, within a reasonable time after service upon him or her,
mail a copy of the service by certified mail, return receipt
requested, to me at my last known business address.
"I agree that I am bound by all the provisions of the
Alabama Real Estate License Law the same as if I were a
resident of the State of Alabama.
___________________Legal Signature of Applicant"
The commission may reject the application of any person
who has been convicted of or pleaded guilty or nolo contendere
to a felony or a crime involving moral turpitude.
(b)(1)a. A person who holds a current real estate
salesperson license in another state, including persons who
move to and become residents of Alabama, shall apply for a
reciprocal salesperson license on a form prescribed by the
commission. A person who holds a current broker license in
another state, including persons who move to and become
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Page 22
another state, including persons who move to and become
residents of Alabama, shall apply for a reciprocal broker
license on a form prescribed by the commission .
b. The applicant shall submit proof that he or she has
a current real estate license in another state as evidenced by
a certificate of licensure, together with any other
information required by the commission. The applicant shall
also show proof that he or she has completed at least six
hours of course work in Alabama real estate which is approved
by the commission. Applicants for a reciprocal license shall
not be subject to the complete examination or temporary
license requirements of Section 34-27-33, but shall pass a
reasonable written examination prepared by the commission on
the subject of Alabama real estate. A person who holds a
reciprocal license shall show proof of completion of
continuing education either by meeting the requirements of
Section 34-27-35 or by showing proof that his or her other
state license remains active in that state.
c. The fees for issuance and renewal of a reciprocal
license shall be the same as those for original licenses
pursuant to Section 34-27-35. The recovery fund fee for
issuance of a reciprocal license shall be the same as for an
original license pursuant to Section 34-27-31.
(2) A person who holds a current Alabama license who
moves to and becomes a resident of the state shall within 10
days submit to the commission notice of change of address and
all other license status changes.
(c) A person who does not hold a current real estate
broker license in another state desiring to be a real estate
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Page 23
broker license in another state desiring to be a real estate
broker in this state shall apply for a broker'sbroker license
on a form prescribed by the commission which shall specify the
real estate office to which he or she is registered. Along
with the application, he or she shall submit all of the
following:
(1) Proof that he or she has had an active real estate
salesperson'ssalesperson license in any state for at least 24
months of the 36-month period immediately preceding the date
of application.
(2) Proof that he or she is a high school graduate or
the equivalent.
(3) Proof that he or she has completed a course in real
estate approved by the commission, which shall be a minimum of
60 clock hours.
(4) Any other information requested by the commission.
(d) A person who does not hold a current real estate
salesperson license in another state desiring to be a real
estate salesperson in this state shall apply for a
salesperson'ssalesperson license with the commission on a form
prescribed by the commission which shall specify the real
estate office to which he or she is registered. Along with the
application he or she shall furnish all of the following:
(1) Proof that he or she is a high school graduate or
the equivalent.
(2) Proof that he or she has successfully completed a
course in real estate approved by the commission, which shall
be a minimum of 60 clock hours.
(3) Any other information required by the commission.
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Page 24
(3) Any other information required by the commission.
(e) An application for a company license or branch
office license shall be made by a qualifying broker on a form
prescribed by the commission. The qualifying broker shall be
an officer, partner, or employee of the company.
(f) An applicant for a company or broker license shall
maintain a place of business.
(g) If the applicant for a company or broker license
maintains more than one place of business in the state, he or
she shall have a company or branch office license for each
separate location or branch office. Every application shall
state the location of the company or branch office and the
name of its qualifying broker. Each company or branch office
shall be under the direction and supervision of a qualifying
broker licensed at that address. No person may serve as
qualifying broker at more than one location. The qualifying
broker for the branch office and the qualifying broker for the
company shall share equal responsibility for the real estate
activities of all licensees assigned to the branch office or
company.
(h)(1) No person shall be a qualifying broker for more
than one company or for a company and on his or her own behalf
unless he or she meets all of the following requirements :
(1)a. All companies for which he or she is and proposes
to be the qualifying broker consent in writing.
(2)b. He or she files a copy of the written consent
with the commission.
c. All companies for which he or she is and proposes to
be the qualifying broker share the same company address (3) He
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Page 25
be the qualifying broker share the same company address (3) He
or she will be doing business from the same location .
(2) A person licensed under a qualifying broker may be
engaged by one or more companies with the same qualifying
broker.
(3) A person may utilize any office of a company under
which he or she is licensed.
(i) A company license shall become invalid on the death
or disability of a qualifying broker. Within 30 days after the
death or disability, the corporation, or the remaining
partners or the successor partnership, if any, may designate
another of its officers, members, or salespersons to apply for
a license as temporary qualifying broker. The person
designated as temporary qualifying broker shall either be a
broker or have been a salesperson for at least one year prior
to filing the application. If the application is granted, the
company may operate under that temporary qualifying broker for
no more than six months after the death or disability of its
former qualifying broker temporary qualifying broker license is
issued. Unless the company designates a fully licensed broker
as the qualifying broker within the six months, the company
license and all licenses under the company shall be classified
inactive by the commission.
(j) The commission shall require both state and
national criminal history background checks to issue a
license. Applicants shall submit required information and
fingerprints to the commission, Federal Bureau of
Investigation, Alabama State Law Enforcement Agency, or its
successor, or to a fingerprint processing service that may be
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Page 26
successor, or to a fingerprint processing service that may be
selected by the commission for this purpose. Criminal history
record information shall be provided to the commission from
both the State of Alabama and the Federal Bureau of
Investigation. The commission can use the provided criminal
history for the determination of the qualifications and
fitness of the applicant to hold a real estate license. The
applicant shall assume the cost of the criminal history check.
The criminal history mustshall be current to the issuance of
the license.
(k) The commission may charge a fee of ten dollars
($10) for furnishing any person a copy of a license,
certificate, or other official record of the commissioner."
Section 5. Section 34-27-32, Code of Alabama 1975, is
amended to read as follows:
"§34-27-32
(a) A license for a broker or a salesperson shall be
registered to a specific real estate office and shall be
issued only to, and held only by, a person who meets all of
the following requirements:
(1) Is trustworthy and competent to transact the
business of a broker or salesperson in a manner that
safeguards the interest of the public.
(2) Is a person whose application for real estate
licensure has not been rejected in any state on any grounds
other than failure to pass a written examination within the
two years prior to the application for real estate licensure
with Alabama. If the applicant's rejection for real estate
licensure in any state is more than two years from the date of
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728 HB13 INTRODUCED
Page 27
licensure in any state is more than two years from the date of
application for licensure with Alabama, then the applicant may
not be issued an Alabama real estate license without the
approval of the commissioners.
(3) Is a person whose real estate license has not been
revoked in any state within the two years prior to application
for real estate licensure with Alabama. If the applicant's
real estate licensure revocation in any state, including
Alabama, is more than two years from the date of application
for licensure with Alabama then the applicant may not be
issued an Alabama real estate license without the approval of
the commissioners.
(4) Is at least 19 years oldof age.
(5) Is a citizen of the United States or, if not a
citizen of the United States, a person who is legally present
in the United States with appropriate documentation from the
federal government, or is an alien with permanent resident
status.
(6) Is a person who, if a nonresident, agrees to sign
an affidavit stating the following and in the following form:
"I, as a nonresident applicant for a real estate
license and as a licensee, agree that the Alabama Real Estate
Commission shall have jurisdiction over me in any and all of
my real estate related activities the same as if I were an
Alabama resident licensee. I agree to be subject to
investigations and disciplinary actions the same as Alabama
resident licensees. Further, I agree that civil actions may be
commenced against me in any court of competent jurisdiction in
any county of the State of Alabama.
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756 HB13 INTRODUCED
Page 28
any county of the State of Alabama.
"I hereby appoint the Executive Director or the
Assistant Executive Director of the Alabama Real Estate
Commission as my agent upon whom all disciplinary, judicial,
or other process or legal notices may be served. I agree that
any service upon my agent shall be the same as service upon me
and that certified copies of this appointment shall be deemed
sufficient evidence and shall be admitted into evidence with
the same force and effect as the original might be admitted. I
agree that any lawful process against me which is served upon
my agent shall be of the same legal force and validity as if
personally served upon me and that this appointment shall
continue in effect for as long as I have any liability
remaining in the State of Alabama. I understand that my agent
shall, within a reasonable time after service upon him or her,
mail a copy of the service by certified mail, return receipt
requested, to me at my last known business address.
"I agree that I am bound by all the provisions of the
Alabama Real Estate License Law the same as if I were a
resident of the State of Alabama.
___________________Legal Signature of Applicant"
The commission may reject the application of any person
who has been convicted of or pleaded guilty or nolo contendere
to a felony or a crime involving moral turpitude.
(b)(1)a. A person who holds a current real estate
salesperson license in another state, including persons who
move to and become residents of Alabama, shall apply for a
reciprocal salesperson license on a form prescribed by the
commission. A person who holds a current broker license in
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Page 29
commission. A person who holds a current broker license in
another state, including persons who move to and become
residents of Alabama, shall apply for a reciprocal broker
license on a form prescribed by the commission .
b. The applicant shall submit proof that he or she has
a current real estate license in another state as evidenced by
a certificate of licensure, together with any other
information required by the commission. The applicant shall
also show proof that he or she has completed at least six
hours of course work in Alabama real estate which is approved
by the commission. Applicants for a reciprocal license shall
not be subject to the complete examination or temporary
license requirements of Section 34-27-33, but shall pass a
reasonable written examination prepared by the commission on
the subject of Alabama real estate. A person who holds a
reciprocal license shall show proof of completion of
continuing education either by meeting the requirements of
Section 34-27-35 or by showing proof that his or her other
state license remains active in that state.
c. The fees for issuance and renewal of a reciprocal
license shall be the same as those for original licenses
pursuant to Section 34-27-35. The recovery fund fee for
issuance of a reciprocal license shall be the same as for an
original license pursuant to Section 34-27-31.
(2) A person who holds a current Alabama license who
moves to and becomes a resident of the state shall within 10
days submit to the commission notice of change of address and
all other license status changes.
(c) A person who does not hold a current real estate
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Page 30
(c) A person who does not hold a current real estate
broker license in another state desiring to be a real estate
broker in this state shall apply for a broker'sbroker license
on a form prescribed by the commission which shall specify the
real estate office to which he or she is registered . Along
with the application, he or she shall submit all of the
following:
(1) Proof that he or she has had an active real estate
salesperson'ssalesperson license in any state for at least 24
months of the 36-month period immediately preceding the date
of application.
(2) Proof that he or she is a high school graduate or
the equivalent.
(3) Proof that he or she has completed a course in real
estate approved by the commission, which shall be a minimum of
60 clock hours.met all of the following requirements:
a. Successfully completed a course in broker basics
approved by the commission.
b. Passed a license examination within 90 days after
completion of the broker basics course.
c. Within 90 days after passing the license
examination, successfully completed a course in professional
development approved by the commission.
(4) Any other information requested by the commission.
(d) A person who does not hold a current real estate
salesperson license in another state desiring to be a real
estate salesperson in this state shall apply for a
salesperson'ssalesperson license with the commission on a form
prescribed by the commission which shall specify the real
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Page 31
prescribed by the commission which shall specify the real
estate office to which he or she is registered . Along with the
application he or she shall furnishprovide all of the
following:
(1) Proof that he or she is a high school graduate or
the equivalent.
(2) Proof that he or she has successfully completed a
course in real estate approved by the commission, which shall
be a minimum of 60 clock hours. met all of the following
requirements:
a. Successfully completed a salesperson basics course
approved by the commission.
b. Passed a license examination within 90 days after
completing the salesperson basics course.
c. Within 90 days after passing the license
examination, successfully completed a course approved by the
commission in salesperson professional development.
(3) The name of the applicant's qualifying broker,
along with the information required pursuant to Section
34-27-33.
(3)(4) Any other information required by the
commission.
(e) An application for a company license or branch
office license shall be made by a qualifying broker on a form
prescribed by the commission. The qualifying broker shall be
an officer, partner, or employee of the company.
(f) An applicant for a company or broker license shall
maintain a place of business.
(g) If the applicant for a company or broker license
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Page 32
(g) If the applicant for a company or broker license
maintains more than one place of business in the state, he or
she shall have a company or branch office license for each
separate location or branch office. Every application shall
state the location of the company or branch office and the
name of its qualifying broker. Each company or branch office
shall be under the direction and supervision of a qualifying
broker licensed at that address. No person may serve as
qualifying broker at more than one location. The qualifying
broker for the branch office and the qualifying broker for the
company shall share equal responsibility for the real estate
activities of all licensees assigned to the branch office or
company.
(h)(1) No person shall be a qualifying broker for more
than one company or for a company and on his or her own behalf
unless he or she meets all of the following requirements :
(1)a. All companies for which he or she is and proposes
to be the qualifying broker consent in writing.
(2)b. He or she files a copy of the written consent
with the commission.
(3) He or she will be doing business from the same
locationc. All companies for which he or she is and proposes
to be the qualifying broker share the same company address	.
(2) A person licensed under a qualifying broker may be
engaged by one or more companies with the same qualifying
broker.
(3) A person may utilize any office of a company under
which he or she is licensed.
(i) A company license shall become invalid on the death
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Page 33
(i) A company license shall become invalid on the death
or disability of a qualifying broker. Within 30 days after the
death or disability, the corporation, or the remaining
partners or the successor partnership, if any, may designate
another of its officers, members, or salespersons to apply for
a license as temporary qualifying broker. The person
designated as temporary qualifying broker shall either be a
broker or have been a salesperson for at least one year prior
to filing the application. If the application is granted, the
company may operate under that temporary qualifying broker for
no more than six months after the death or disability of its
former qualifying broker temporary qualifying broker license is
issued. Unless the company designates a fully licensed broker
as the qualifying broker within the six months, the company
license and all licenses under the company shall be classified
inactive by the commission.
(j) The commission shall require both state and
national criminal history background checks to issue a
license. Applicants shall submit required information and
fingerprints to the commission, Federal Bureau of
Investigation, Alabama State Law Enforcement Agency, or its
successor, or to a fingerprint processing service that may be
selected by the commission for this purpose. Criminal history
record information shall be provided to the commission from
both the State of Alabama and the Federal Bureau of
Investigation. The commission can use the provided criminal
history for the determination of the qualifications and
fitness of the applicant to hold a real estate license. The
applicant shall assume the cost of the criminal history check.
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924 HB13 INTRODUCED
Page 34
applicant shall assume the cost of the criminal history check.
The criminal history mustshall be current to the issuance of
the license.
(k) The commission may charge a fee of ten dollars
($10) for furnishing any person a copy of a license,
certificate, or other official record of the commissioner."
Section 6. Section 34-27-33, Code of Alabama 1975, is
amended to read as follows:
"§34-27-33
(a)(1) In addition to other requirements of this
chapterPursuant to Section 34-27-32 , every applicant for a
broker'sbroker or salesperson'ssalesperson license shall
submit to a reasonable written examination. The commission
shall conduct examinations at places and times it prescribes.
The commission may contract with an independent testing agency
to prepare, grade, or conduct the examination.
(2) Effective October 1, 2001, and thereafter, the The
fee for each examination and the provisions for payment and
forfeiture shall be as specified in the contract with the
independent testing agency.
(b)(1) Within 90 days after passing the examination,
the applicant shall complete a professional development course
approved by the commission, meet all of the requirements of
this chapter, and secure a qualifying broker . and meet all
requirements of this chapter and the board shall Upon the
applicant doing so, the commission shall issue a temporary an
active license or classify the license as inactive. 
(2) In order to obtain an active license, the
applicant's qualifying broker shall acknowledge sign and
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Page 35
applicant's qualifying broker shall acknowledge sign and
submit to the commission a sworn statement that the applicant
is in his or her opinion honest, trustworthy, and of good
reputation, and that the broker accepts responsibility for the
actions of the salesperson as set out in Section 34-27-31. The
applicant's qualifying broker shall be licensed inhold an
active Alabama license.
(c)(1) On passing the examination and complying with
all other conditions for licensure, a temporary license
certificate shall be issued to the applicant. The applicant is
not licensed until he or she or his or her qualifying broker
actually receives the temporary license certificate. A
temporary license shall be valid only for a period of one year
following the first day of the month after its issuance .
(2)a. The holder of a temporary license shall not be
issued an original license until he or she has satisfactorily
completed a 30-hour post-license course prescribed by the
commissionsubmits to the commission both of the following:
1. Proof of successful completion of a 15-hour
orientation as prescribed by the commission, in the
applicant's real estate practice area.
2. A complete core competencies checklist on a form
prescribed by the commission and signed by the applicant's
qualifying broker . 
b. If the The holder of a temporary license must
complete the course fails to complete and submit the
application for an original license with required
documentation within six months90 daysofafter issuance of his
or her temporary license ,and have his or her original license
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980 HB13 INTRODUCED
Page 36
or her temporary license ,and have his or her original license
issued, otherwise his or her temporary license certificate
shall automatically be placed on inactive status by the
commission. During the remaining six months his or her
temporary license is valid, the holder of a temporary license
may complete the course and have his or her original license
issued. If the holder of a temporary license does not complete
the course and have his or her original license issued within
one year following the first day of the month after its
issuance, the temporary license shall automatically expire and
lapse. A temporary license is not subject to renewal
procedures in this chapter and may not be renewed.
(3) An inactive temporary license must be renewed at
the proper time if an original license has not been issued. If
a temporary license remains inactive for more than three
years, the licensee must retake the salesperson professional
development course prior to activating the license.
(3)(4) In order to have the status of an inactive a
temporary license issuedchanged to active status, the
applicant shall pay the Recovery Fund fee specified in this
chapter. The holder of a temporary license shall, upon
satisfactory completion of the course, pay the original
license fee specified in this chapter to have his or her
original license issued. An applicant for an original license
who has paid the Recovery Fund fee specified in this chapter
shall not be required to pay another Recovery Fund fee in
order to have his or her original license issued.
(4) The holder of an original license who has
satisfactorily completed the postlicense course and whose
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satisfactorily completed the postlicense course and whose
original license has been issued, shall not be subject to the
continuing education requirements in this chapter for the
first renewal of his or her original license.
(d) This section shall become effective for licenses
issued beginning October 1, 1993. " 
Section 7. Section 34-27-34, Code of Alabama 1975, is
amended to read as follows:
"§34-27-34
(a)(1) A broker may serve as qualifying broker for a
salesperson or associate broker only if licensed in Alabama,
his or her principal business is that of a real estate broker,
and he or she shall be in a position to actually supervise the
real estate activities of the associate broker or salesperson
on a full-time basis A person concurrently licensed as a broker
in another state who has reciprocally obtained a broker
license in this state may serve as a qualifying broker over a
salesperson or associate broker if he or she meets all of the
following requirements:
a. Real estate is his or her principal business.
b. He or she is in a position to actually supervise the
real estate activities of the associate broker or salesperson
on a full-time basis.
c. He or she has held an active broker license for at
least 24 of the last 36 months.
(2) A person licensed as a broker in this state who is
not currently licensed as a broker in another state may serve
as qualifying broker over a salesperson or associate broker if
he or she meets all of the following requirements:
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he or she meets all of the following requirements:
a. Real estate is his or her principal business.
b. He or she is in a position to actually supervise the
real estate activities of the associate broker or salesperson
on a full-time basis.
c. He or she has held an active broker license for at
least 24 of the last 36 months.
d. He or she has attended a qualifying broker training
course provided by the commission .
(2)(3)a. A salesperson or associate broker shall not
perform acts for which a license is required unless licensed
under a qualifying broker.
b. A qualifying broker shall be held responsible to the
commission and to the public for all acts governed by this
chapter of each salesperson and associate broker licensed
under him or her and of each company for which he or she is
the qualifying broker. It shall be the duty of the qualifying
broker to see that all transactions of every licensee engaged
by him or her or any company for which he or she is the
qualifying broker comply with this chapter.
c. A Additionally, the qualifying broker shall be
responsible to an injured party for the damage caused by any
violation of this chapter by any licensee engaged by the
qualifying broker. This subsection does not relieve a licensee
from liability that he or she would otherwise have.
(3)d. The qualifying brokers'broker's supervision
responsibilities, as prescribed herein, over the real estate
activities of associate brokers and salespersons licensed
under him or her are not intended to create, and should not be
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under him or her are not intended to create, and should not be
construed as creating , an employer-employee relationship
contrary to any expressed intent of the qualifying broker and
licensee to the contrary.
(b)(1) Any salesperson or associate broker who desires
to change his or her qualifying broker shall give notice in
writing to the commission, and shall send a copy of the notice
to his or her qualifying broker. The new qualifying broker
shall file with the commission a request for the transfer and
a statement assuming liability for the licensee. In order to
transfer a license, the applicant's new qualifying broker
shall acknowledge to the commission that in his or her opinion
the applicant is honest, trustworthy, of good reputation, and
that the broker accepts responsibility for the actions of the
salesperson under Section 34-27-31.
(2) On payment of a fee of twenty-five dollars ($25), a
new license certificate shall be issued to the new qualifying
broker on behalf of the salesperson or associate broker for
the unexpired term of the original license. A fee of
twenty-five dollars ($25) shall also be charged for any of the
following license changes:
(1)a. Change of qualifying broker by a company or sole
proprietorship. The fee isshall be paid for theeach license or
licenses on which the current and new qualifying brokers'
names appear. In cases where a company has a branch office or
offices and the main office qualifying broker is changed, the
fee is paid for each branch office license and for the license
of each branch qualifying broker. This change must be made
within 30 days of the name change.
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within 30 days of the name change.
(2)b. Change of personal name of a qualifying broker.
Within 30 days following name change, the The fee isshall be
paid for the license or licenses on which the current
qualifying broker's name appears.
(3)c. Change of personal name of a salesperson or
associate broker. Within 30 days after the name change, the
The fee isshall be paid for the license on which the name
appears.
(4)d. Change of business location. The fee is paid for
the license or licenses on which the address appears.
(5)e. Change of business name. The fee is paid for the
license or licenses on which the name appears.
(6)f. Change of license status from inactive to active.
The fee is paid for each license being changed from inactive
to active status. No fee is charged for the change from active
to inactive status.
(c) A personqualifying broker who wishes to terminate
his or her status as qualifying broker responsibility for a
licensee may do so by notifying the licensee and the
commission in writing and sending the licensee's license
certificate to the commission or verifying in writing to the
commission that the certificate has been lost or destroyed
placing the licensee's license on inactive status with the
commission.
(d) A personAn individual who wishes to terminate his
or her status as a qualifying broker for a company may do so
by submitting written notice to the company or qualifying
brokerofficers of the parent company and the commission.
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brokerofficers of the parent company and the commission.
(e) A salesperson or associate broker shall not perform
any act for which a license is required after his or her
association with his or her qualifying broker has been
terminated, or if he or she changes qualifying brokers, until
a new active license has been issued by the commission."
Section 8. Section 34-27-35, Code of Alabama 1975, is
amended to read as follows: 
"§34-27-35
(a) The commission shall prescribe the form and content
of license certificates issued. Each qualifying broker's
license certificate shall show the name and business address
of the broker. The license certificate of each active
salesperson or associate broker shall show his or her name and
address. The license certificate of each active salesperson or
associate broker shall be delivered or mailed to his or her
qualifying broker. Each license certificate shall be kept by
the qualifying broker and shall be publicly displayed at the
address which appears on the license certificate.
(b) The commission may establish a one-year or
multi-year license period.
(c)(1) The fee for a temporary license shall be one
hundred fifty dollars ($150). The original fee for a
broker'sbroker license shall be one hundred fifty dollars
($150).and, beginning with the license period effective
October 1, 2002, the The renewal fee for a broker'sbroker
license shall be seventy-five dollars ($75) per year for each
year of the license period. The original fee for each
salesperson'ssalesperson license shall be sixty-five dollars
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salesperson'ssalesperson license shall be sixty-five dollars
($65) per year for each year or portion of a year remaining in
the respective license period, and the renewal fee for each
salesperson'ssalesperson license shall be sixty-five dollars
($65) per year for each year of the license period. The
original fee for each company license shall be sixty-five
dollars ($65) per year for each year or portion of a year
remaining in the respective license period, and the renewal
fee for each license shall be sixty-five dollars ($65) per
year for each year of the license period.
(2) Beginning with the license period effective October
1, 2004, theThe renewal fee for a broker'sbroker license shall
be ninety-five dollars ($95) per year for each year of the
license period. The original fee for each
salesperson'ssalesperson license shall be eighty-five dollars
($85) per year for each year or portion of a year remaining in
the respective license period, and the renewal fee for each
salesperson'ssalesperson license shall be eighty-five dollars
($85) per year for each year of the license period. The
original fee for each company license shall be eighty-five
dollars ($85) per year for each year or portion of a year
remaining in the respective license period, and the renewal
fee for each license shall be eighty-five dollars ($85) per
year for each year of the license period.
(d)(1) The renewal research and education fee shall be
twoseven dollars and fifty cents ($2.50)($7.50) per year for
each year of the license period and shall be paid at the time
of license renewal by all brokers and salespersons in addition
to the license renewal fees set out in this section.
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to the license renewal fees set out in this section.
Collection of this fee shall apply to all broker and
salesperson renewals, except that brokers who hold more than
one broker'sbroker license shall pay the fee for only one
license at each renewal.
(2) Beginning June 1, 2014, this fee shall be seven
dollars and fifty cents ($7.50), and the The proceeds shall be
distributed to the Alabama Center for Real Estate.
(e) The original research and education fee shall be
thirty dollars ($30) and shall be paid at the time of all
applications received on and after October 15, 1995, for
issuance of an original broker'sbroker license, and shall be
paid at the time of all applications received on and after
October 15, 1995, for issuance of a temporary
salesperson'ssalesperson license. The original research and
education fee shall also be paid by reciprocal salespersons.
This is in addition to the original license fees set out in
this section. This thirty dollar ($30) original research and
education fee is a one-time fee which no person shall be
required to pay more than once.
(f) The license of a salesperson who is subsequently
issued a broker'sbroker license automatically terminates upon
the issuance of his or her broker'sbroker license certificate.
The salesperson'ssalesperson license certificate shall be
returned to the commission in order for a broker'sbroker
license to be issued. No refund shall be made of any fee or
Recovery Fund deposit pertaining to the salesperson's,
broker's, or company's salesperson, broker, or company license
once it has been in effect .
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once it has been in effect .
(g) The commission shall prescribe a license renewal
form, which shall accompany renewal fees whichand shall be
filed on or before August 31 of the final year of each license
period in order for the respective license to be renewed on a
timely basis for the following license period. If any of the
foregoing are filed during the period from September 1 through
September 30 of the final year of a license period, the one
hundred fifty dollar ($150) penalty set out below shall be
paid in addition to the renewal fees. Failure to meet this
September 30 deadline shall result in the license being placed
on inactive status on the following October 1, and the license
shall be subject to all reactivation requirements.
Reactivations shall be processed in the order received as
evidenced by postmark or delivery date. Certified or
registered mail may be used for reactivation in these cases.
Licensees filing during the period from September 1 of the
final year of a license period through September 30 of the
initial year of a license period shall pay the required
license fee, plus a penalty of one hundred fifty dollars
($150).
(h) The renewal form shall be mailed by the commission
to the licensee's place of business, if an active licensee, or
to his or her residence, if an inactive licensee, prior to
August 1 of the final year of each license period. Each
licensee shall notify the commission in writing of any change
in his or her business or residence address within 30 days of
the change.
(i) Every license shall expire at midnight on September
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(i) Every license shall expire at midnight on September
30 of the final year of each license period. An expired
license may be renewed during the 12-month period following
the license period for which the license was current. A
licensee who fails to renew before the end of the 12-month
period following the license period for which the license was
issued has a lapsed license, and shall be subject to all
requirements applicable to persons who have never been
licensed, however, the commission may upon determination of
hardship, allow later renewal upon payment of all fees and
penalties. An inactive license must be renewed in the same
manner as an active license.
(j)(1) Each applicant for renewal of an active
salesperson or broker license issued by the commission shall,
on or before September 30 of the final year of each license
period, submit proof of completion of not less than 15 clock
hours of approved continuing education course work to the
commission, in addition to any other requirements for renewal.
Failure to meet this deadline shall result in the license
being placed on inactive status on the following October 1,
and the license shall be subject to all reactivation
requirements. Reactivations shall be processed in the order
received as evidenced by postmark or delivery date. Certified
or registered mail may be used for reactivation in this case.
Proof of attendance at the course work, whether or not the
applicant attained a passing grade in the course, shall be
sufficient to satisfy requirements for renewal. The 15 clock
hours' course work requirement shall apply to each two-year
license renewal, and hours in excess of 15 shall not be
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Page 46
license renewal, and hours in excess of 15 shall not be
cumulated or credited for the purpose of subsequent license
renewals. The commission shall develop standards for approval
of courses, and shall require certification of the course work
of the applicant.
Time served as a member of the state Legislature during
each license renewal period shall be deemed the equivalent of
the 15 hours course work and shall satisfy the requirements of
this subsection.
(2) This section shall apply to renewals of licenses
which expire after September 30, 1986. An applicant for first
renewal who has been licensed for not more than one year shall
not be required to comply with this section for the first
renewal of the applicant's license. Any licensee reaching the
age of 65 on or before September 30, 2000, and having been
licensed 10 years prior to that date shall be exempt from this
section.
(3) Continuing education shall not result in a passing
or failing grade.
(k) A licensee may request that the commission issue
his or her license toas inactive status. Inactive licenses
shall be held at the commission office until activated. No act
for which a license is required shall be performed under an
inactive license.
(l) If a licensee presents a form of payment to the
commission, or to any third party on the commission's behalf,
which is declined or rejected by a financial institution or
merchant service company, the licensee shall have 30 days upon
electronic notification from the commission to submit full and
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electronic notification from the commission to submit full and
valid payment for the initial fee or fine and an additional
fee for submitting the faulty payment, not to exceed the
maximum amount allowed by Section 8-8-15. Failure to submit
full and valid payment within 30 days of electronic
notification by the commission will result in the license
becoming inactive. Failure to submit full and valid payment
within six months after electronic notification by the
commission will result in the license lapsing. "
Section 9. Section 34-27-35, Code of Alabama 1975, is
amended to read as follows:
"§34-27-35
(a) The commission shall prescribe the form and content
of license certificates issued. Each qualifying broker's
license certificate shall show the name and business address
of the broker. The license certificate of each active
salesperson or associate broker shall show his or her name and
address. The license certificate of each active salesperson or
associate broker shall be delivered or mailed to his or her
qualifying broker. Each license certificate shall be kept by
the qualifying broker and shall be publicly displayed at the
address which appears on the license certificate.
(b) The commission may establish a one-year or
multi-year license period.
(c)(1) The fee for a temporary license shall be one
hundred fifty dollars ($150). The original fee for a
broker'sbroker license shall be one hundred fifty dollars
($150) and, beginning with the license period effective
October 1, 2002, the renewal fee for a broker's license shall
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October 1, 2002, the renewal fee for a broker's license shall
be seventy-five dollars ($75) per year for each year of the
license period. The original fee for each salesperson's
license shall be sixty-five dollars ($65) per year for each
year or portion of a year remaining in the respective license
period, and the renewal fee for each salesperson's license
shall be sixty-five dollars ($65) per year for each year of
the license period. The original fee for each company license
shall be sixty-five dollars ($65) per year for each year or
portion of a year remaining in the respective license period,
and the renewal fee for each license shall be sixty-five
dollars ($65) per year for each year of the license period	.
(2) Beginning with the license period effective October
1, 2004, theThe renewal fee for a broker'sbroker license shall
be ninety-five dollars ($95) per year for each year of the
license period. The original fee for each
salesperson'ssalesperson license shall be eighty-five dollars
($85) per year for each year or portion of a year remaining in
the respective license period, and the renewal fee for each
salesperson'ssalesperson license shall be eighty-five dollars
($85) per year for each year of the license period. The
original fee for each company license shall be eighty-five
dollars ($85) per year for each year or portion of a year
remaining in the respective license period, and the renewal
fee for each license shall be eighty-five dollars ($85) per
year for each year of the license period.
(d)(1) The renewal research and education fee shall be
twoseven dollars and fifty cents ($2.50)($7.50) per year for
each year of the license period and shall be paid at the time
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Page 49
each year of the license period and shall be paid at the time
of license renewal by all brokers and salespersons in addition
to the license renewal fees set out in this section.
Collection of this fee shall apply to all broker and
salesperson renewals, except that brokers who hold more than
one broker'sbroker license shall pay the fee for only one
license at each renewal.
(2) Beginning June 1, 2014, this fee shall be seven
dollars and fifty cents ($7.50), and the The proceeds shall be
distributed to the Alabama Center for Real Estate.
(e) The original research and education fee shall be
thirty dollars ($30) and shall be paid at the time of all
applications received on and after October 15, 1995, for
issuance of an original broker'sbroker license, and shall be
paid at the time of all applications received on and after
October 15, 1995, for issuance of a temporary
salesperson'ssalesperson license. The original research and
education fee shall also be paid by reciprocal salespersons.
This is in addition to the original license fees set out in
this section. This thirty dollar ($30) original research and
education fee is a one-time fee which no person shall be
required to pay more than once.
(f) The license of a salesperson who is subsequently
issued a broker'sbroker license automatically terminates upon
the issuance of his or her broker'sbroker license certificate.
The salesperson's license certificate shall be returned to the
commission in order for a broker's license to be issued. 	No
refund shall be made of any fee or Recovery Fund deposit
pertaining to the salesperson's, broker's, or
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Page 50
pertaining to the salesperson's, broker's, or
company'ssalesperson, broker, or company license once it has
been in effect.
(g) The commission shall prescribe a license renewal
form, which shall accompany renewal fees and which shall be
filed on or before August 31September 30 of the final year of
each license period in order for the respective license to be
renewed on a timely basis for the following license period. If
any of the foregoing are filed during the period from
September 1 through September 30 of the final year of a
license period, the one hundred fifty dollar ($150) penalty
set out below shall be paid in addition to the renewal fees.
Failure to meet this September 30 deadline shall result in the
license expiring and being placed on inactive status on the
following October 1, and the license shall be subject to all
reactivation requirements. Reactivations shall be processed in
the order received as evidenced by postmark or delivery date.
Certified or registered mail may be used for reactivation in
these cases. Licensees filing during the period from September
1 of the final year of a license period through after September
30 of the initial year of a license period shall pay the
required license fee, plus a penalty of one hundred fifty
dollars ($150).
(h) The renewal form shall be mailed by the commission
to the licensee's place of business, if an active licensee, or
to his or her residence, if an inactive licensee, prior to
August 1 of the final year of each license period. Each
licensee shall notify the commission in writing of any change
in his or her business or residence address within 30 days of
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Page 51
in his or her business or residence address within 30 days of
the change.
(i) Every license shall expire at midnight on September
30 of the final year of each license period , except for a
temporary salesperson whose license becomes inactive 90 days
after issuance or a temporary broker whose license expires six
months after issuance . An expired license may be renewed
during the 12-month period following the license period for
which the license was current. A licensee who fails to renew
before the end of the 12-month period following the license
period for which the license was issued has a lapsed license,
and shall be subject to all requirements applicable to persons
who have never been licensed, however, the commission may upon
determination of hardship, allow later renewal upon payment of
all fees and penalties. An inactive license must be renewed in
the same manner as an active license.
(j)(1) Each applicant for renewal of an active
salesperson or broker license issued by the commission shall,
on or before September 30 of the final year of each license
period, submitconfirm through the commission's website proof
of completion of not less than 15 clock his or her continuing
education requirement hours of approved continuing education
course work to the commission, in addition to any other
requirements for renewal. A maximum of six one-clock-hour
courses shall be accepted by the commission as part of a
licensee's continuing education requirement. Failure to meet
this deadline shall result in the license being placed on
inactive status on the following October 1, and the license
shall be subject to all reactivation requirements.
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Page 52
shall be subject to all reactivation requirements.
(2)a. Reactivations shall be processed in the order
received as evidenced by postmark or delivery date. Certified
or registered mail may be used for reactivation in this case.
Proof of attendance at the completion of course work, whether
or not the applicant attained a passing grade in the course,
shall be sufficient to satisfy requirements for renewal. The
15 clock hours' course work continuing education requirement
shall apply to each two-year license renewal, and hours in
excess of 15 shall not be cumulated or credited for the
purpose ofapplicable to subsequent license renewals. The
commission shall develop standards for approval of courses,
and shall require certification of the course work of the
applicant. No continuing education course shall be approved by
the commission unless the course is at least 60 minutes of
instruction.
b. Time served as a member of the state Legislature
during each license renewal period shall be deemed the
equivalent of the 15 hours course work continuing education
requirement and shall satisfy the requirements of this
subsection.
(3)(2) This section shall apply to renewals of licenses
which expire after September 30, 1986. An applicant for first
renewal of an original license who has been licensed for not
more than one year shall not be required to comply with this
section for the first renewal of the applicant's license. Any
licensee reaching the age of 65 on or before September 30,
2000, and having been licensed 10 years prior to that date
shall be exempt from this section.
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shall be exempt from this section.
(3)(4) Continuing education shall not result in a
passing or failing grade.
(k) A licensee may request that the commission issue
his or her license toin an inactive status. Inactive licenses
shall be held at the commission office until activated. No act
for which a license is required shall be performed under an
inactive license.
(l) If a licensee presents a form of payment to the
commission, or to any third party on the commission's behalf,
which is declined or rejected by a financial institution or
merchant service company, the licensee shall have 30 days upon
electronic notification from the commission to submit full and
valid payment for the initial fee or fine and an additional
fee for submitting the faulty payment, not to exceed the
maximum amount allowed by Section 8-8-15. Failure to submit
full and valid payment within 30 days of electronic
notification by the commission will result in the license
becoming inactive. Failure to submit full and valid payment
within six months after electronic notification by the
commission will result in the license lapsing. "
Section 10. Section 34-27-36, Code of Alabama 1975, is
amended to read as follows: 
"§34-27-36
(a)(1) The commission or its staff may on its own, or
on the verified complaint in writing of any person,
investigate the actions and records of a licensee. The
commission may issue subpoenas and compel the testimony of
witnesses and the production of records and documents during
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witnesses and the production of records and documents during
an investigation. If probable cause is found, a formal
complaint shall be filed and the commission shall hold a
hearing on the formal complaint.
(2) In each instance in which a person or entity
engages in any of the acts described in subsection (b) or is
found in violation of any of the conduct prohibited in
subsection (b), the commission may impose any of the following
penalties:
a. Impose a fine of not less than one hundred dollars
($100) nor more than five thousand dollars ($5,000).
b. Require completion of approved education course or
courses in addition to the existing continuing education
requirements.
c. Issue a public reprimand.
d. Revoke or suspend any or all licenses held under
this chapter by the person or entity The commission shall
revoke or suspend the license or impose a fine of not less
than one hundred dollars ($100) nor more than two thousand
five hundred dollars ($2,500), or both, or reprimand the
licensee in each instance in which the licensee is found
guilty of any of the following acts set out in this section.
The commission may revoke or suspend a license until such time
as the licensee has completed an approved continuing education
course,and/orhas made restitution to accounts containing
funds to be held for other parties , or both. The commission
may also stay the revocation or suspension of a license and
require completion of an approved education course and/or,
require the making of restitution to accounts containing funds
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require the making of restitution to accounts containing funds
to be held for other parties , or both.
(b) A licensee is prohibited from doing any of the
following:
(1) Procuring or attempting to procure , a license, for
himself or herself or another, by fraud, misrepresentation, or
deceit, or by making a material misstatement of fact in an
application for a license.
(2) Engaging in misrepresentation or dishonest or
fraudulent acts when selling, buying, trading, or renting real
property of his or her own or of a spouse or child or parent.
(3) Making a material misrepresentation, or failing to
disclose to a potential purchaser or lessee any latent
structural defect or any other defect known to the licensee.
Latent structural defects and other defects do not refer to
trivial or insignificant defects but refer to those defects
that would be a significant factor to a reasonable and prudent
person in making a decision to purchase or lease.
(4) Making any false promises of a character likely to
influence, persuade, or induce any person to enter into any
contract or agreement.
(5) Pursuing a continued and flagrant course of
misrepresentation or the making of false promises through
agents or salespersons or any medium of advertising or
otherwise.
(6) Publishing or causing to be published any
advertisement which deceives or which is likely to deceive the
public, or which in any manner tends to create a misleading
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public, or which in any manner tends to create a misleading
impression or which fails to identify the person causing the
advertisement to be placed as a licensed broker or
salesperson.
(7) Acting for more than one party in a transaction
without the knowledge and consent in writing of all parties
for whom he or she acts.
(8)a. Failing, within a reasonable time, to properly
account for or remit money coming into his or her possession
which belongs to others, or commingling money belonging to
others with his or her own funds.
b. Failing to deposit and account for at all times all
funds belonging to, or being held for others, in a separate
federally insured account or accounts in a financial
institution located in Alabama.
c. Failing to keep for at least three years a complete
record of funds belonging to others showing to whom the money
belongs, date deposited, date of withdrawal, and other
pertinent information.
(9) Placing a sign on any property offering it for
sale, lease, or rent without the consent of the owner.
(10) Failing to voluntarily furnish a copy of each
listing, contract, lease, and other document to each party
executing the document with reasonable promptness.
(11) Paying any profit, compensation, commission, or
fee to, or dividing any profit, compensation, commission, or
fee with, anyone other than a licensee or multiple listing
service. This subdivision shall not prevent an associate
broker or salesperson from owning any lawfully constituted
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broker or salesperson from owning any lawfully constituted
business organization, including, but not limited to, a
corporation or limited liability company or limited liability
corporation, for the purpose of receiving payments
contemplated in this subsection. The business organization
shall not be required to be licensed under this chapter, and
shall not engage in any other activity requiring a real estate
license.
(12) Paying or receiving any rebate from any person in
a real estate transaction.
(13) Inducing any party to a contract to breakbreach
the contract for the purpose of substituting a new contract,
where the substitution is motivated by the personal gain of
the licensee.
(14) If the licensee is a salesperson or associate
broker, accepting a commission or other valuable consideration
for performing any act for which a license is required from
any person except his or her qualifying broker.
(15) If the licensee is a qualifying broker or company,
allowing a salesperson or associate broker licensed under him
or her to advertise himself or herself as a real estate agent
without the name or trade name of the qualifying broker or
company appearing prominently on the advertising; or if the
licensee is a salesperson or associate broker, advertising
himself or herself as a real estate agent without the name or
trade name of the qualifying broker or company under whom the
salesperson or associate broker is licensed appearing
prominently on the advertising. For purposes of this
subdivision, "prominently" means use of a font size that is
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subdivision, "prominently" means use of a font size that is
equal to or larger in size than any other text or logo in the
advertisement and situated and sized for the purpose of
gaining the attention of consumers viewing the advertisement.
(16) Presenting to the commission, as payment for a fee
or fine, a check that is returned unpaid a. Failing, as the
buyer's agent, to notify the listing agent in writing within
three business days in the event that the buyer has not
deposited earnest money in accordance with a contract
requiring the buyer to deposit escrow funds with any person or
entity.
b. Failing, as the listing agent, to notify his or her
client immediately if no written receipt of escrow funds has
been provided to the listing agent within three business days
of the time specified by the contract for deposit of escrow
funds.
(17) Establishing an association, by employment or
otherwise, with an unlicensed person who is expected or
required to act as a licensee, or aiding, abetting, or
conspiring with a person to circumvent the requirements of
this chapter.
(18) Failing to disclose to an owner the licensee's
intention to acquire, directly or indirectly, an interest in
property which he or she or his or her associates have been
employed to sell.
(19) Violating or disregarding any provision of this
chapter or any rule, regulation, or order of the commission.
(20) If a broker , accepting accepts a "net listing"
agreement for sale of real property or any interest therein. A
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agreement for sale of real property or any interest therein. A
"net listing" is one that stipulates a net price to be
received by the owner with the excess due to be received by
the broker as his or her commission.
(21) Misrepresenting or failing to disclose to any
lender, guaranteeing agency, or any other interested party,
the true terms of a sale of real estate.
(22) Failing to inform the buyer or seller at the time
an offer is presented that he or she will be expected to pay
certain closing costs and the approximate amount of those
costs.
(23)a. Having entered a plea of guilty or nolo
contendere to, or having been found guilty of or convicted of
a felony or a crime involving moral turpitude.
b. Having a final money judgment rendered against him
or her which results from an act or omission occurring in the
pursuit of his or her real estate business or involves the
goodwill of an existing real estate business.
(24) Offering free lots or conducting lotteries for the
purpose of influencing a party to purchase or lease real
estate.
(25)a. Failing to include a fixed date of expiration in
a written listing agreement or failing to leave a copy of the
written residential listing agreement or written residential
property management agreement with the principal.
b. Failing to include a fixed date of expiration, not
to exceed one year from the date of commencement, in a written
residential listing agreement.
c. Recording or filing a residential listing agreement
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c. Recording or filing a residential listing agreement
with a probate court or probate office to encumber the
property that is the subject of the listing agreement.
(26) Conduct which constitutes or demonstrates
dishonest dealings, bad faith, or untrustworthiness.
(27) Acting negligently or incompetently in performing
an act for which a person is required to hold a real estate
license.
(28) Failing or refusing on demand to produce a
document, book, or record in his or her possession concerning
a real estate transaction conducted by him or her for
inspection by the commission or its authorized personnel or
representative.
(29) Failing within a reasonable time to provide
information requested by the commission during an
investigation or after a formal complaint has been filed.
(30) Failing without cause to surrender to the rightful
owner, on demand, a document or instrument coming into his or
her possession.
(31) If the licensee is a qualifying broker or company,
failing to keep in their files copies of all contracts,
leases, listings, and other records pertinent to real estate
transactions for a period of three years.
(32) When selling, offering to sell, assigning, or
offering to assign an equitable interest in a contract to
purchase residential real estate:
a. Failing to disclose in writing to a potential buyer
that the holder of the equitable interest is not the deed
holder of the property and is only offering to sell or assign
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holder of the property and is only offering to sell or assign
his or her equitable interest; or
b. Failing to disclose in writing to a seller both of
the following:
1. The intent to assign an equitable interest in the
seller's real estate prior to offering to assign the interest.
2. The assignment of the interest within three calendar
days following the assignment.
(b)(c) If it appears that a person, firm, corporation,
or any business entity has engaged, or is about to engage, in
an act or practice constituting a violation of Article 1 or 2
of this chapter or any rule or order of the commission, the
commission, through the Attorney General, may institute legal
actions to enjoin the act or practice and to enforce
compliance with Articles 1 and 2 of this chapter or any rule
or order of the commission. To prevail in an action, it shall
not be necessary to allege or prove either that an adequate
remedy at law does not exist or that substantial or
irreparable damage would result from the continued violation.
(c)(d)(1) Notwithstanding any other provisions of law,
the commission may issue an order requiring any accused
person, firm, corporation, or business entity to cease and
desist from engaging in activities requiring a license under
this chapter when the accused person, firm, corporation, or
business entity is not licensed under this chapter. The order
shall be entered by the executive director after a finding of
probable cause by the commission staff. The order shall become
final 15 days after its service upon the accused, unless the
accused requests a hearing before the commission. Upon hearing
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accused requests a hearing before the commission. Upon hearing
the case and finding violations, the commission may make the
cease and desist order final and the commission may impose a
fine for each violation in an amount consistent with the range
of fines applicable to licensees, and in addition, may impose
a fine in the amount of any gain or economic benefit that was
derived from the violation, and in addition, may impose a fine
in the amount of the commission's costs incurred. Any fines
not paid as ordered shall be enforceable in any court with
competent jurisdiction and proper venue.
(2) Notwithstanding any other provisions of law, the
commission may decline to issue an order requiring any accused
person, firm, corporation, or business entity to cease and
desist from engaging in activities requiring a license under
this chapter when the accused person, firm, corporation, or
business entity is not licensed under this chapter. In this
instance, the commission shall proceed to give appropriate
notice of the violations and hold a hearing thereon. Upon
hearing the case and finding violations, the commission may
impose a fine for each violation in an amount consistent with
the range of fines applicable to licensees, and in addition,
may impose a fine in the amount of any gain or economic
benefit that was derived from the violation, and in addition,
may impose a fine in the amount of the commission's costs
incurred. Any fine or fines not paid as ordered shall be
enforceable in any court with competent jurisdiction and
proper venue.
(d)(e) The commission shall notify the licensee and
qualifying broker in writing regarding the complaint.
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qualifying broker in writing regarding the complaint.
(e)(f) The commission shall notify the complainant,
licensee, and qualifying broker in writing regarding the
disposition of the complaint."
Section 11. Section 34-27-39 is added to the Code of
Alabama 1975, to read as follows: 
§34-27-39 
(a) No licensee shall advertise or market as a team,
group, or other affiliation unless actively licensed as a team
by the commission. 
(b) The leader of any licensed team shall at a minimum
be a licensed Alabama associate broker.  
(c) A broker wishing to license a team must complete
the team license application established by the commission.
The application must be authorized by the leader of the
proposed team and the team leader's qualifying broker. The
application must include the name and license number of all
licensees that will initially be a member of the team. 
(d) The commission may establish a one-year or
multi-year team license period.
(e) The original fee for each team license shall be one
hundred dollars ($100) per year or portion of a year remaining
in the respective license period, and the renewal fee for each
team license shall be one hundred dollars ($100) per year for
each year of the license period. Team licenses must be renewed
by September 30 of the final year of a licensing period, or
the team shall be inactivated and subject to reactivation
requirements. The fee to reactivate a team shall be fifty
dollars ($50).
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dollars ($50).
(f) To dissolve a team, the request must be made as
prescribed by the commission and approved by the team leader
and the team leader's qualifying broker.
(g) To change the name of a team, the fee shall be
fifty dollars ($50), and the request must be made as
prescribed by the commission and approved by the team leader
and the team leader's qualifying broker.
(h) To add or remove a member from a team, the fee
shall be twenty-five dollars ($25) per member who is added or
removed. The request must be made as prescribed by the
commission and approved by the team leader and the team
leader's qualifying broker.
(i) The team leader, the team leader's qualifying
broker, and the company's qualifying broker are all
responsible for supervising team members. 
(j) The team leader and the team leader's qualifying
broker are responsible for notifying the team members if a
team member is removed from a team or the team is dissolved or
inactivated.
(k) No person shall be a member on more than one
licensed team.
(l) The commission shall adopt rules addressing teams
and what words may or may not be used in a team name and how
teams may advertise and market.
Section 12. Sections 34-27-81, 34-27-82, 34-27-83,
34-27-84, 34-27-85, and 34-27-86, Code of Alabama 1975, are
amended to read as follows: 
"§34-27-81
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"§34-27-81
As used in this article, the following words shall have
the following meanings:
(1) AGENCY AGREEMENT. A written agreement between a
broker and a client which creates a fiduciary relationship
between the broker and a principal, who is commonly referred
to as a clientconsumer.
(2) BROKER. Any person licensed as a real estate broker
pursuant to Articles 1 and 2 of this chapter.
(3) BROKERAGE AGREEMENT. A specific written agreement
between a brokerage firmreal estate company and a consumer
which establishes a brokerage relationship. The brokerage
agreement shall contain a statement of the terms and
conditions of the brokerage services to be provided.
(4) BROKERAGE SERVICE. Any service, except for rental
or property management services, provided by a broker or
licensee to another person and includes all activities for
which a real estate license is required under Articles 1 and 2
of this chapter.
(5) CONSUMER. A person who obtains information, advice,
or services concerning real estate from a real estate
licenseeCLIENT. A person who has an agency agreement with a
broker for brokerage service, whether he or she is buyer or
seller.
(6) CLIENT. A person who has an agency agreement with a
broker for brokerage service, whether he or she be buyer or
sellerCONSUMER. A person who obtains information, advice, or
services concerning real estate from a real estate licensee	.
(7) CUSTOMER. A person who is provided brokerage
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(7) CUSTOMER. A person who is provided brokerage
services by a broker or licensee but who is not a client of
the broker.
(8) DESIGNATED SINGLE AGENT. An agency agreement in
which two or more licensed individuals under the same
qualifying broker each represent a different party in the
transaction, as designated by the qualifying broker. In this
circumstance, neither the qualifying broker nor other
licensees involved in the transaction shall be assumed to have
imputed knowledge.
(8)(9) DUAL AGENCY. An agency relationshipagreement in
which the same brokerage firm a licensee, with informed written
consent of all parties to a transaction, represents both the
seller and the buyer in the same real estate transaction once
all parties have signed the agreement . Circumstances which
establish a dual agency include, but are not limited to, one
of the following:
a. When two or more licensees licensed under the same
broker each represent a different party to the transaction.
b. When one licensee represents both the buyer and
seller in a real estate transaction.
(10) IMPUTED KNOWLEDGE. Knowledge attributed to a party
because of his or her position, relationship to another party,
or responsibility for another party.
(9)(11) INFORMED CONSENT. A consumer's agreement to
allow something to happen which is based upon full disclosure
of facts needed to choose appropriate brokerage services.
(10)(12) LICENSEE. Any broker, salesperson, or company.
(11) LIMITED CONSENSUAL DUAL AGENT. A licensee who,
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(11) LIMITED CONSENSUAL DUAL AGENT. A licensee who,
with the written informed consent of all parties to a
contemplated real estate transaction, is engaged as an agent
for both the buyer and seller. Circumstances which establish
dual agency include, but are not limited to, one of the
following:
a. When two or more licensees licensed under the same
broker each represent a different party to the transaction.
b. When one licensee represents both the buyer and
seller in a real estate transaction.
(12)(13) MATERIAL FACT. A fact that is of significance
to a reasonable party which affects the party's decision to
enter into a real estate contract.
(13)(14) QUALIFYING BROKER. A broker under whom a
corporation, partnership, branch office, or lawfully
constituted business organization, as the Legislature may from
time to time provide, is licensed, or a broker licensed to do
business as a sole proprietorship who is responsible for
supervising the acts of the company, or proprietorship and all
real estate licensees licensed therewith.
(14)(15) REAL ESTATE TRANSACTION. The purchase, sale,
lease and rental, option, or exchange of an interest in real
estate.
(15)(16) SINGLE AGENT. A licensee who has an agency
agreement and is engaged by and represents only one party in a
real estate transaction. A single agent includes, but is not
limited to, onemay be only one of the following:
a. Buyer's agent, which means a broker or licensee who
is engaged by and represents only the buyer in a real estate
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is engaged by and represents only the buyer in a real estate
transaction.
b. Seller's agent, which means a broker or licensee who
is engaged by and represents only the seller in a real estate
transaction.
(16) SUB-AGENT. A licensee who is empowered to act for
another broker in performing real estate brokerage tasks for a
principal, and who owes the same duties to the principal as
the agent of the principal.
(17) TRANSACTION BROKERFACILITATOR. The term has the
same meaning as "Transaction Broker" provided in Act 98-618.
The term also includes a A licensee who assists one or more
parties in a contemplated real estate transaction without
being an agent or fiduciary or advocate for the interest of
that party to a transaction."
"§34-27-82
(a) When engaged in any real estate transaction, the
licensee may act as a single agent, sub-agent, a limited
consensual dual agent, or as a transaction brokerfacilitator.
(b) At the initial contact between a licensee and the
consumer and until such time a brokerlicensee enters into a
specific written agreement to establish an agency relationship
with one or more of the parties to a transaction, the licensee
shall be considered a transaction facilitator and not be
considered an agent of that consumer. An agency relationship
shall not be assumed, implied, or created without a written
bilateral agreement signed by the licensee and the consumer
establishing the terms of the agency relationship.
(c) As soon as reasonably possible and before any
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(c) As soon as reasonably possible and before any
confidential information is disclosed to any other person by a
licensee, the licensee shall provide a written disclosure form
to a consumer for signature describing the alternative types
of brokerage services, as identified in subsection (a), that
are available to clients and customers of real estate
brokerage companies. The licensee shall also inform a consumer
as to the specific types of brokerage services that are
provided by his or her company. A broker shall not be required
to offer or engage in any one or in all of the alternative
brokerage arrangementsservices specified in subsection (a).
The licensee will provide a written form to the consumer for
their signature describing the alternative types of brokerage
arrangementsservices available. All rental or property
management services are excluded from the requirements of this
subsection.
(d) A licensee shall not be required to comply with the
provisions of subsection (c) when engaged in transactions with
any corporation, non-profitnonprofit corporation, professional
corporation, professional association, limited liability
company, partnership, any partnership created under the
Uniform Partnership Act (commencing at Section 10-8A-101),
real estate investment trust, business trust, charitable
trust, family trust, or any governmental entity in
transactions involving real estate.
(e) After disclosure, the consumer may make an
affirmative election of a specific type of brokerage
arrangementservice that is available from the real estate
brokerage company. The brokerage agreement shall contain a
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brokerage company. The brokerage agreement shall contain a
statement of the terms and conditions of the brokerage
services that the brokercompany will provide. In the absence
of a signed brokerage agreement between the parties, the
transaction brokeragefacilitator relationship shall remain in
effect.
(f) When serving as a transaction brokerfacilitator,
the duties of the licensee to all the parties to a real estate
transaction are limited to those which are enumerated in
Section 34-27-84. A signed brokerage agreement between the
parties or, in the absence of a signed brokerage agreement,
the continuation of the transaction brokeragefacilitator
relationship, shall constitute informed consent by the
consumer as to the services the consumer shall receive from
the broker.
(g) Disclosure forms shall be provided to buyers and
sellers. All real estate brokerage firmscompanies operating
within the State of Alabama shall use the same agency
disclosure forms. Disclosure forms describing the alternative
types of brokerage services identified above shall be written
by the Alabama Real Estate Commission.
(h) Each offer to purchase shall prominently display a
representation disclosure clause in the following form,
completed and initialed as indicated:
The listing licensee, _____________, is:
□ An agent of the seller.
□ A dual agent.
□ Assisting the seller as a transaction facilitator.
The selling licensee,_______________, is:
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The selling licensee,_______________, is:
□ An agent of the buyer.
□ A dual agent.
□ Assisting the buyer as a transaction facilitator.
(h)(i) Nothing in this section shall prohibit the
consumer from entering into a written contract with a
qualifying broker which contains provisions for services not
specifically identified in the written disclosure form." 
"§34-27-83
Any qualifying broker acting in a real estate
transaction shall adopt a written agency disclosure office
policy which specifically enumerates the types of brokerage
service arrangements services a licensee may offer or accept.
(a) The qualifying broker for each brokeragereal estate
company shall provide every licensee a copy of the agency
disclosure policy regarding the types of brokerage services
offered by their company. This policy shall be explained to
all licensees at least once a year.
(b) A form acknowledging receipt of the agency
disclosure office policy statement and a satisfactory
explanation of its contents shall be signed by each licensee
and a copy retained by the brokeragereal estate company for
three years." 
"§34-27-84
(a) Licensees shall have all of the following
obligations to all parties in a real estate transaction:
(1) To provide brokerage services to all parties to the
transaction honestly and in good faith.
(2) To exercise reasonable skill and care in providing
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(2) To exercise reasonable skill and care in providing
brokerage services to all parties.
(3) To keep confidential any information given to the
licensee in confidence, or any information obtained by the
licensee that the licensee knows a reasonable individual would
want to keep confidential, unless disclosure of this
information is required by law, violates a fiduciary duty to a
client, becomes public knowledge, or is authorized by the
party in writing , or the information becomes public knowledge,
or the failure to disclose the information violates a
fiduciary duty to a client .
(4) To account for all property coming into the
possession of the licensee that belongs to any party to the
real estate transaction.
(5) When assisting a party in the negotiation of a real
estate transaction, to present all written offers in a timely
and truthful manner.
(6) To act on behalf of the licensee or his or her
immediate family, or on behalf of any other individual,
organization, or business entity in which the licensee has a
personal interest only with prior timely written disclosure of
this interest to all parties to the transaction.
(b) A licensee may provide requested information which
affects a transaction to any party who requests the
information, unless disclosure of the information is
prohibited by law or in this article.
(c) When accepting an agreement to list an owner's
property for sale, the broker or his or her licensee shall, at
a minimum, accept delivery of and present to the consumer all
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a minimum, accept delivery of and present to the consumer all
offers, counteroffers, and addenda to assist the consumer in
negotiating offers, counteroffers, and addenda, and to answer
the consumer's questions relating to the transaction." 
"§34-27-85
(a) In addition to the duties enumerated in Section
34-27-84, a licensee shall provide all of the following
services to clients:
(1) Loyally represent the best interests of the client
by placing the interests of the client ahead of the interests
of any other party, unless loyalty to a client violates the
duties of the licensee to other parties under Section
34-27-84, or is otherwise prohibited by law.
(2) Disclose to the client all information known by the
licensee that is material to the transaction and not
discoverable by the client through reasonable investigation
and observation, except for confidential information as
provided in subdivision (a)(3) of subsection (a) of Section
34-27-84. A licensee shall have no affirmative duty to
discover the information.
(3) Fulfill any obligation required by the agency
agreement, and any lawful instructions of the client that are
within the scope of the agency agreement, that are not
inconsistent with other duties as enumerated in this article.
(b) A brokerlicensee who represents more than one
client in a real estate transaction owes the duties as
specified in subsection (a) to each client, except where the
duties to one client will violate the fiduciary duties of the
licensee to other clients.
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licensee to other clients.
(c) A brokerlicensee may provide brokerage services as
a limited consensual dual agent only with the prior written,
informed consent of all clients of the brokerlicensee in the
transaction." 
"§34-27-86
(a) A client is not liable for a misrepresentation made
by a brokerlicensee in connection with the brokerlicensee
providing brokerage services unless the client knows or should
have known of the misrepresentation or the brokerlicensee is
repeating a misrepresentation made by the client to the
brokerlicensee.
(b) A licensee shall not be liable for providing false
information to a party in a real estate transaction if the
false information was provided to the licensee by a client of
the licensee or by a customer or by another licensee unless
the licensee knows or should have known that the information
was false."
Section 13. Sections 1, 3, 4, 7, 8, 10, and 12 shall
become effective on October 1, 2024; Sections 5, 6, 9, and 11
shall become effective on October 1, 2026, and shall apply to
licenses issued or renewed on or after that date; and Section
2 shall become effective on October 1, 2027, and shall apply
to licenses issued or renewed on or after that date.
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