Alabama 2024 Regular Session

Alabama House Bill HB3 Compare Versions

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

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1	1	HB3INTRODUCED
2	2	Page 0
3	3	HB3
4	4	6BWX311-1
5	5	By Representatives Hollis, Wood (D)
6	6	RFD: Commerce and Small Business
7	7	First Read: 05-Feb-24
8	8	2024 Regular Session
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14	14	6 6BWX311-1 12/01/2023 SLU (L)SLU 2023-3665
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16	16	2024 Regular Session
17	17	SYNOPSIS:
18	18	Under existing law pertaining to licensing real
19	19	estate companies, brokers, and salespersons, there is
20	20	no provision limiting the number of co-brokerage
21	21	agreements a nonresident broker may enter into with
22	22	state licensed brokers.
23	23	Under existing law, there is no limit on the
24	24	duration of a residential listing agreement.
25	25	Under existing law, there are no specific
26	26	disclosures required of licensees dealing in equitable
27	27	interests in a contract for purchase and sale of
28	28	residential property.
29	29	This bill would provide certain requirements
30	30	pertaining to training, qualifications, licensure and
31	31	license renewal for licensed real estate companies,
32	32	brokers, salespersons, teams, schools that offer real
33	33	estate training courses, and applicants for licensure.
34	34	This bill would provide certain restrictions on
35	35	transactions between nonresident co-brokers and
36	36	licensees of this state.
37	37	This bill would provide that the Alabama Real
38	38	Estate Commission may impose penalties for a licensee's
39	39	failure to disclose certain aspects of transactions
40	40	involving the sale or assignment of an equitable
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70	70	involving the sale or assignment of an equitable
71	71	interest in a contract for the purchase and sale of
72	72	residential real estate.
73	73	This bill would further provide that the Alabama
74	74	Real Estate Commission may impose penalties for certain
75	75	conduct by licensees including, but not limited to, the
76	76	failure to specify the expiration date of a residential
77	77	listing agreement or for creating an encumbrance on the
78	78	property that is the subject of a residential listing
79	79	agreement by recording the listing agreement with a
80	80	probate officer.
81	81	This bill would also make nonsubstantive,
82	82	technical revisions to update the existing code
83	83	language to current style.
84	84	A BILL
85	85	TO BE ENTITLED
86	86	AN ACT
87	87	Relating to licensed real estate professionals and
88	88	companies; to amend Sections 34-27-2, 34-27-3, 34-27-6,
89	89	34-27-8, 34-27-32, 34-27-33, 34-27-34, 34-27-35, 34-27-36,
90	90	34-27-81, 34-27-82, 34-27-83, 34-27-84, 34-27-85, and
91	91	34-27-86, Code of Alabama 1975; to add Section 34-27-39; to
92	92	provide certain requirements related to training,
93	93	qualifications and licensure of real estate companies,
94	94	brokers, and salespersons; to provide restrictions on
95	95	nonresident co-broker transactions in the state; to impose
96	96	penalties for certain licensee conduct including certain
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126	126	penalties for certain licensee conduct including certain
127	127	conduct related to the sale or assignment of an equitable
128	128	interest in a residential purchase and sale agreement and for
129	129	the failure to provide a specified expiration date of a
130	130	residential listing agreement; and to make nonsubstantive,
131	131	technical revisions to update the existing code language to
132	132	current style.
133	133	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
134	134	Section 1. Sections 34-7-2, 34-27-3, 34-27-6, 34-27-8,
135	135	34-27-32 through 34-27-36, and 34-27-81 through 34-27-86, Code
136	136	of Alabama 1975,are amended to read as follows:
137	137	"§34-27-2
138	138	(a) For purposes of Articles 1 and 2 of this chapter,
139	139	the following terms shall have the respective following
140	140	meanings ascribed by this section :
141	141	(1) APARTMENT. A building or complex with more than
142	142	four individual units owned by a single person, built
143	143	primarily for residential leasing purposes.
144	144	(1)(2) ASSOCIATE BROKER. Any broker other than a
145	145	qualifying broker.
146	146	(2)(3) BROKER. Any person licensed as a real estate
147	147	broker under Articles 1 and 2 of this chapter.
148	148	(3)(4) COMMISSION. The Alabama Real Estate Commission,
149	149	except where the context requires that it means the fee paid
150	150	to a broker or salesperson.
151	151	(4)(5) COMMISSIONER. A member of the commission.
152	152	(5)(6) COMPANY. Any sole proprietorship, corporation,
153	153	partnership, branch office, or lawfully constituted business
154	154	organization as the Legislature may provide for from time to
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184	184	organization as the Legislature may provide for from time to
185	185	time, which is licensed as a company under Articles 1 and 2 of
186	186	this chapter.
187	187	(6)(7) ENGAGE. Contractual relationships between a
188	188	qualifying broker and an associate broker or salesperson
189	189	licensed under him or her whether the relationship is
190	190	employer-employee, independent contractor, or otherwise.
191	191	(8) EQUITABLE INTEREST IN A CONTRACT or EQUITABLE
192	192	INTEREST. Any interests or rights in a contract or agreement
193	193	to purchase residential real estate held by a party to the
194	194	contract or agreement.
195	195	(7)(9) INACTIVE LICENSE. A license which is being held
196	196	by the commission office by law, order of the commission, at
197	197	the request of the licensee, or which is renewable but is not
198	198	currently valid because of failure to renew.
199	199	(8)(10) LICENSEE. Any broker, salesperson, or company.
200	200	(9)(11) LICENSE PERIOD. That period of time beginning
201	201	on October 1 of a year designated by the commission to be the
202	202	first year of a license period and ending on midnight
203	203	September 30 of the year designated by the commission as the
204	204	final year of that license period.
205	205	(12) LISTING AGREEMENT. An agreement between a company
206	206	and an owner by which the company agrees to assist the owner
207	207	in the sale of the owner's real property in exchange for a
208	208	fee. The definition includes agreements giving the company the
209	209	right to list or market the owner's real property upon the
210	210	owner's future decision to sell the property.
211	211	(13) OWNER. A person or entity legally deeded real
212	212	property.
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242	242	property.
243	243	(10)(14) PERSON. A natural person.
244	244	(11)(15) PLACE OF BUSINESS.
245	245	a. A licensed broker living in a rural area of this
246	246	state who operates from his or her home, provided that he or
247	247	she sets up and maintains an office for the conduct of the
248	248	real estate business, which shall not be used for living
249	249	purposes or occupancy other than the conduct of the real
250	250	estate business. The office shall be used by the broker only
251	251	and not as a place of business from which any additional
252	252	licensee operates under his or her license. The office shall
253	253	have a separate business telephone, separate entrance, and be
254	254	properly identified as a real estate office.
255	255	b. All licensees located within the city limits or
256	256	police jurisdiction of a municipality shall operate from a
257	257	separate office located in the city limits or police
258	258	jurisdiction. The office shall have a business telephone, meet
259	259	all other regulations of the Real Estate Commission, and be
260	260	properly identified as a real estate office. Hardship cases
261	261	may be subject to waiver of this regulation upon application
262	262	and approval by the commission.
263	263	c. All business records and files shall be kept at the
264	264	place of business as required by law or Real Estate Commission
265	265	rules.
266	266	(16) PRINCIPAL BROKER. As used in other states, having
267	267	the same meaning as "qualifying broker" in this state.
268	268	(12)(17) QUALIFYING BROKER. A broker under whom a sole
269	269	proprietorship, corporation, partnership, branch office, or
270	270	lawfully constituted business organization as the Legislature
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300	300	lawfully constituted business organization as the Legislature
301	301	may from time to time provide is licensed, or a broker
302	302	licensed as a company to do business as a sole proprietorship
303	303	who is responsible for supervising the acts of the company or
304	304	proprietorship and all real estate licensees licensed
305	305	therewith.
306	306	(13)(18) RECOVERY FUND. The Alabama Real Estate
307	307	Recovery Fund.
308	308	(19) RESIDENTIAL. Pertaining to real property located
309	309	in the state which is used primarily for personal, family, or
310	310	household purposes and is improved by one to four dwelling
311	311	units.
312	312	(14)(20) SALESPERSON. Any person licensed as a real
313	313	estate salesperson under Articles 1 and 2 of this chapter.
314	314	(21) TEAM. Licensees within the same company who group
315	315	together to share consumers, resources, knowledge, or
316	316	commissions.
317	317	(b) The licensing requirements of Articles 1 and 2 of
318	318	this chapter shall not apply to any of the following persons
319	319	and transactions:
320	320	(1) Any owner in the managing of, or in consummating a
321	321	real estate transaction involving, his or her own real estate
322	322	or the real estate of his or her spouse or child or parent.
323	323	(2) An attorney-at-law performing his or her duties as
324	324	an attorney-at-law.
325	325	(3) Persons acting without compensation and in good
326	326	faith under a duly executed power of attorney authorizing the
327	327	consummation of a real estate transaction.
328	328	(4) Persons or a state or federally chartered financial
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358	358	(4) Persons or a state or federally chartered financial
359	359	institution acting as a receiver, trustee, administrator,
360	360	executor, or guardian; or acting under a court order or under
361	361	authority of a trust instrument or will.
362	362	(5) Public officers performing their official duties.
363	363	(6) Persons performing general clerical or
364	364	administrative duties for a broker so long as the person does
365	365	not physically show listed property.
366	366	(7) Persons acting as the manager for an apartment
367	367	building or complex. However, this exception shall not apply
368	368	to a person acting as an on-site manager of a condominium
369	369	building or complex.
370	370	(8) Persons licensed as time-share sellers under
371	371	Article 3 of this chapter performing an act consistent with
372	372	that article.
373	373	(9) Transactions involving the sale, lease, or transfer
374	374	of cemetery lots."
375	375	"§34-27-3
376	376	(a) A licensed principal broker of another state may
377	377	act as co-broker , whether in sales or lease transactions, with
378	378	a licensed broker of this state by executing a written
379	379	agreement specifying each parcel of property covered by the
380	380	agreement if the state in which the nonresident broker is
381	381	licensed offers the same privileges to licensees of this
382	382	state. Co-brokerage agreements are limited to three
383	383	transactions per calendar year, per licensed nonresident
384	384	principal broker. Transactions may include multiple properties
385	385	if the properties are part of the same portfolio. No licensed
386	386	nonresident principal broker shall use co-brokerage agreements
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416	416	nonresident principal broker shall use co-brokerage agreements
417	417	to engage in transactions totaling more than fifty million
418	418	dollars ($50,000.000) in any one calendar year.
419	419	(b) Whenever an Alabama qualifying broker enters into a
420	420	co-brokerage agreement with a nonresident principal broker to
421	421	perform in Alabama any of the acts described in Section
422	422	34-27-30, the Alabama qualifying broker shall file within 10
423	423	days with the commission a copy of each such written agreement
424	424	not more than 10 days after the agreement is signed by all
425	425	parties. By signing the agreement, the nonresident broker
426	426	agrees to abide by Alabama law, and the rules and regulations
427	427	of the commission; and further agrees that civil actions may
428	428	be commenced against him or her in any court of competent
429	429	jurisdiction in any county of this state in which a claim may
430	430	arise.
431	431	(c) All co-brokerage agreements with nonresident
432	432	co-brokers shall include all of the following provisions:
433	433	(1) The Alabama broker shall require a listing or joint
434	434	listing of the property involved.
435	435	(2) The agreement shall specify all material terms,
436	436	including, but not limited to, the financial terms.
437	437	(3) The showing of property located in Alabama and any
438	438	negotiations pertaining to it shall be supervised by the
439	439	Alabama broker.
440	440	(4) The name of the Alabama broker shall appear in all
441	441	advertising of real property located in the state.
442	442	(5) The Alabama broker shall be liable for all acts of
443	443	the nonresident broker, as well as his or her own acts,
444	444	arising from the execution of the co-brokerage agreement.
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474	474	arising from the execution of the co-brokerage agreement.
475	475	(6) The Alabama broker shall verify that the
476	476	nonresident broker is a licensed principal broker in another
477	477	state.
478	478	(7) Any earnest money deposited pursuant to the
479	479	agreement must be held in escrow by the Alabama broker unless
480	480	both the buyer and the seller agree in writing to relieve the
481	481	Alabama broker of this responsibility. "
482	482	"§34-27-6
483	483	(a) For purposes of this section and rules adopted
484	484	pursuant thereto, the following terms shall have the following
485	485	meanings:
486	486	(1) ACCREDITED SCHOOL. Any nonprofit college or
487	487	university meeting the standards of an accrediting agency
488	488	recognized by the U.S. Department of Education and offering
489	489	any commission-approved course.
490	490	(1)(2) ADMINISTRATOR. A person designated by a
491	491	principal school or branch school licensed by the commission
492	492	and approved by the commission to be the person responsible to
493	493	the commission for all acts governed by this chapter and
494	494	applicable rules which govern the operation of schools.
495	495	(2) APPROVED COURSE. Any course of instruction approved
496	496	by the commission that satisfies commission requirements for
497	497	prelicense education, postlicense education, or continuing
498	498	education.
499	499	(3) APPROVED SCHOOL. Any proprietary educational
500	500	institution offering only commission approved continuing
501	501	education courses and any accredited college or university
502	502	that offers any commission approved course.
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532	532	that offers any commission approved course.
533	533	(4) BRANCH SCHOOL. Any school under the ownership of a
534	534	principal school which offers commission approved courses at a
535	535	permanent location.
536	536	(5) CE-ONLY SCHOOL. Any private educational institution
537	537	or organization offering only commission-approved continuing
538	538	education courses.
539	539	(6) CONTINUING EDUCATION. Any professional course
540	540	required to renew or activate a license which can be a minimum
541	541	of one hour upon approval of the commission.
542	542	(7) DISTANCE EDUCATION. Programs whereby instruction
543	543	does not take place in a traditional classroom setting but
544	544	rather where teacher and student are apart by distance or by
545	545	time, and instruction takes place through other media.
546	546	(5)(8) INSTRUCTIONAL SITE. Any physical place where
547	547	commission-approved instruction is conducted apart from the
548	548	principal school or branch school.
549	549	(6)(9) INSTRUCTOR. A person approvedlicensed by the
550	550	commission to teach approved courses in the classroom or by
551	551	distance education.
552	552	(7)(10)LICENSEDPRELICENSE SCHOOL. Any proprietary
553	553	school that is licensed and bonded by the commission,
554	554	including any for-profit college, that offers commission -
555	555	approved prelicense courses or postlicense courses, or both,
556	556	only after being licensed and bonded by the commission .
557	557	(8)(11) PRINCIPAL SCHOOL. Any institution or
558	558	organization which is the primary school and not a branch
559	559	school that is approved and is licensed by the commission.
560	560	(9) PROPRIETARY SCHOOL. Any school that is not an
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590	590	(9) PROPRIETARY SCHOOL. Any school that is not an
591	591	accredited college or university and which offers commission
592	592	approved prelicense courses or postlicense courses, or both,
593	593	only after being licensed and bonded by the commission. Each
594	594	branch school shall be licensed separately.
595	595	(b) The commission shall approve and regulate schools
596	596	that offer commission approved prelicense, postlicense, and
597	597	continuing education courses. The commission shall be the
598	598	board, commission, or agency with have the sole and exclusive
599	599	authority to license proprietaryand regulate schools and their
600	600	branches for the limited purpose of their offerings of
601	601	commission approved prelicense courses or postlicense courses,
602	602	or boththat offer commission-approved prelicense and
603	603	continuing education courses .
604	604	(c) (1) The commission shall require proprietary require
605	605	proprietary prelicense principal schools to furnishobtain a
606	606	surety bond issued by a surety company authorized to do
607	607	business in Alabama, payable to the commission in the amount
608	608	of an amount not to exceed twenty thousand dollars ($20,000)
609	609	with a surety company authorized to do business in Alabama,
610	610	which bond shall provide . The bond shall provide that the bond
611	611	obligor therein shall pay up toan amount not to exceed twenty
612	612	thousand dollars ($20,000) in the aggregate sum of all
613	613	judgments which shall be recovered against the school for
614	614	damages arising from the school's collection of tuition or
615	615	fees, or both, from students, but failing to provide the
616	616	complete instruction for which suchthe tuition or fees were
617	617	collected.
618	618	(2) The bond shall be obtained by the school and shall
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648	648	(2) The bond shall be obtained by the school and shall
649	649	also cover any branch schools named in the bond or any
650	650	endorsement or amendment of or to the bond.
651	651	(3) The bond shall remain in effect as long as the
652	652	school is licensed. In the event the bond is revoked or
653	653	cancelledcanceled by the surety company, the school shall have
654	654	10 days after cancellation or revocation to obtain a new bond
655	655	and file it the bond with the commission. Failure to maintain
656	656	a bond shall result in the immediate suspension of the
657	657	licenses of the school and all of its branches.
658	658	The bond shall be provided by the school and shall also
659	659	cover any branch schools named in the bond or any endorsement
660	660	or amendment thereto.
661	661	(d) (1) The commission shall charge a license fee for
662	662	each licensedprelicense principal school and shall charge a
663	663	fee for each branch school in the amount of two hundred fifty
664	664	dollars ($250) per year for each year or portion of a year
665	665	remaining in the respective license period. The renewal fee
666	666	for each school licenseprelicenseprincipal and branch school
667	667	shall be one hundred twenty-five dollars ($125) for each year
668	668	of the license period.
669	669	(2) The commission shall charge a license fee for each
670	670	CE-only school in the amount of one hundred dollars ($100) per
671	671	year for each year or remaining portion of a year in any
672	672	license period. The renewal fee for each CE-only school shall
673	673	be fifty dollars ($50) for each year of any license period.
674	674	(e) (1) The commission shall require all schools to
675	675	name and have approvedlicensed by the commission a n school
676	676	administrator who shall be responsible to the commission for
677	677	309
678	678	310
679	679	311
680	680	312
681	681	313
682	682	314
683	683	315
684	684	316
685	685	317
686	686	318
687	687	319
688	688	320
689	689	321
690	690	322
691	691	323
692	692	324
693	693	325
694	694	326
695	695	327
696	696	328
697	697	329
698	698	330
699	699	331
700	700	332
701	701	333
702	702	334
703	703	335
704	704	336 HB3 INTRODUCED
705	705	Page 13
706	706	administrator who shall be responsible to the commission for
707	707	all actions of his or her respective school.
708	708	(2) Each administrator shall pay a license fee in the
709	709	amount of one hundred dollars ($100) per year for each year or
710	710	remaining portion of a year of any license period. The renewal
711	711	fee for each administrator shall be fifty dollars ($50) for
712	712	each year that the license period is renewed.
713	713	(f) PrincipalEach schoolsand branch school shall be
714	714	clearly identified by signage which shall indicate the name of
715	715	the schoolas in a manner appropriate for theits location. The
716	716	signage shall set out the name of the principal school. Branch
717	717	schools shall be clearly identified by signage as appropriate
718	718	for the location. The signage shall set out the name of the
719	719	branch school and the name of the principal school.
720	720	(g) The commission shall have the authority to may
721	721	reprimand, fine, suspend for a period up to two years, or
722	722	revoke the license or approval of any school, administrator,
723	723	or instructor for any violation of this section or any rule of
724	724	the commission. The fine shall be not less than one hundred
725	725	dollars ($100) nor moregreater than two thousand five hundred
726	726	dollars ($2,500) five thousand dollars ($5,000) per
727	727	countviolation.
728	728	(h) The commission shall approve, sponsor, contract for
729	729	or conduct, or assist in sponsoring or conducting , real estate
730	730	courses for licensees, may charge fees, and may incur and pay
731	731	the necessary related expenses in connection therewith .
732	732	(i) (1) The commission shall approvelicense and
733	733	regulate instructors who teach the commission -approved
734	734	prelicense, postlicense, and continuing education courses. The
735	735	337
736	736	338
737	737	339
738	738	340
739	739	341
740	740	342
741	741	343
742	742	344
743	743	345
744	744	346
745	745	347
746	746	348
747	747	349
748	748	350
749	749	351
750	750	352
751	751	353
752	752	354
753	753	355
754	754	356
755	755	357
756	756	358
757	757	359
758	758	360
759	759	361
760	760	362
761	761	363
762	762	364 HB3 INTRODUCED
763	763	Page 14
764	764	prelicense, postlicense, and continuing education courses. The
765	765	commission shall establish and collect fees as determined
766	766	necessary, from licensed instructors who teach
767	767	commission-approved courses, in an amount not to exceed fifty
768	768	dollars ($50) per instructor annually , to approved instructors
769	769	who teach commission approved courses .
770	770	(2) The commission shall establish a continuing
771	771	education requirement for all active prelicense instructors.
772	772	(j)(1) An instructor, administrator, or school may
773	773	request that the commission issue or change its license to
774	774	inactive status. An instructor, administrator, or school
775	775	licensee whose license status is inactive shall be prohibited
776	776	from engaging in any of the following:
777	777	a. Teaching commission-approved courses if the licensee
778	778	is an instructor.
779	779	b. Offering commission-approved courses if the licensee
780	780	is a school.
781	781	c. Performing any duties of an administrator if the
782	782	licensee is an administrator, including, but not limited to,
783	783	registering students, advertising the school, reporting course
784	784	schedules to the commission, or entering student credit for
785	785	completed courses.
786	786	(2) The inactive license of an instructor,
787	787	administrator, or school must be renewed in the same manner as
788	788	an active license for an instructor, administrator, or school.
789	789	(3) A prelicense instructor whose license status is
790	790	inactive for three years of less and who renews his or her
791	791	license while its status is inactive may activate his or her
792	792	license for the first time during any license period by
793	793	365
794	794	366
795	795	367
796	796	368
797	797	369
798	798	370
799	799	371
800	800	372
801	801	373
802	802	374
803	803	375
804	804	376
805	805	377
806	806	378
807	807	379
808	808	380
809	809	381
810	810	382
811	811	383
812	812	384
813	813	385
814	814	386
815	815	387
816	816	388
817	817	389
818	818	390
819	819	391
820	820	392 HB3 INTRODUCED
821	821	Page 15
822	822	license for the first time during any license period by
823	823	meeting both of the following requirements:
824	824	a. Completing any continuing education requirement for
825	825	licensed instructors that remains incomplete from the previous
826	826	license period.
827	827	b. Paying a license activation fee.
828	828	c. If the license remains inactive for longer than
829	829	three years, the prelicense instructor must take required
830	830	training before activating his or her license. Once activated,
831	831	a prelicense instructor will be responsible for completing the
832	832	then current continuing education coursework requirement to
833	833	renew the active license for the next license period.
834	834	(4) In addition to any other requirements provided in
835	835	this section, any instructor, administrator, or a school whose
836	836	seeking to change its license status from inactive to active
837	837	shall be required to pay a license activation fee in the
838	838	amount of fifty dollars ($50) per license.
839	839	(k) An active prelicense instructor with an inactive
840	840	broker license must remain current with continuing education
841	841	requirements for active brokers as well as the continuing
842	842	education requirements for active prelicense instructors.
843	843	(l) (1) All education licenses and approvals shall
844	844	expire at midnight on September 30 of the final year of each
845	845	license period. Each prelicense instructor must complete
846	846	required continuing education courses and provide proof of
847	847	completion to the commission on or before September 30 of the
848	848	final year of each license period.
849	849	(2) The continuing education coursework requirement
850	850	shall apply to each two-year education renewal. Coursework
851	851	393
852	852	394
853	853	395
854	854	396
855	855	397
856	856	398
857	857	399
858	858	400
859	859	401
860	860	402
861	861	403
862	862	404
863	863	405
864	864	406
865	865	407
866	866	408
867	867	409
868	868	410
869	869	411
870	870	412
871	871	413
872	872	414
873	873	415
874	874	416
875	875	417
876	876	418
877	877	419
878	878	420 HB3 INTRODUCED
879	879	Page 16
880	880	shall apply to each two-year education renewal. Coursework
881	881	hours completed in excess of the requirement shall not be
882	882	applicable to any subsequent renewal.
883	883	(3) An inactive status license of a prelicense
884	884	instructor shall be renewed in the same manner as for an
885	885	active prelicense instructor except that continuing education
886	886	coursework shall not be required while the license remains
887	887	inactive.
888	888	(m) Any prelicense instructor, administrator, or school
889	889	that fails to renew its license by the September 30th deadline
890	890	shall incur a late fee in the amount of two hundred dollars
891	891	($200) per license as of October 1 of the first year of the
892	892	new license period.
893	893	(n) (1) A licensee may renew an expired license during
894	894	the twelve-month period following the September 30 renewal
895	895	deadline, provided that the licensee shall not engage in any
896	896	licensed activity until the license is renewed.
897	897	(2) After the last day of the twelfth month following
898	898	the September 30 renewal deadline, an expired license shall
899	899	lapse and shall be subject to all requirements applicable to
900	900	an original license.
901	901	(3) The commission may allow late renewal of a lapsed
902	902	license upon a determination of hardship, provided that all
903	903	required fees are paid.
904	904	(j))o)(1) The commission shall approve courses and
905	905	establish and collect fees as determineddeemed necessary, not
906	906	to exceed one hundred dollars ($100) per application, to
907	907	review each course.
908	908	(2) a. The commission may certify synchronous distance
909	909	421
910	910	422
911	911	423
912	912	424
913	913	425
914	914	426
915	915	427
916	916	428
917	917	429
918	918	430
919	919	431
920	920	432
921	921	433
922	922	434
923	923	435
924	924	436
925	925	437
926	926	438
927	927	439
928	928	440
929	929	441
930	930	442
931	931	443
932	932	444
933	933	445
934	934	446
935	935	447
936	936	448 HB3 INTRODUCED
937	937	Page 17
938	938	(2) a. The commission may certify synchronous distance
939	939	education courses, and establish and collect fees deemed
940	940	necessary, in an amount not to exceed four hundred dollars
941	941	($400) per application.
942	942	b. The commission shall consider synchronous distance
943	943	education courses for certification based on the commission's
944	944	analysis of all of the following aspects of the course or the
945	945	program of which it is part:
946	946	1. The course or program mission statement.
947	947	2. Course design.
948	948	3. Interactivity.
949	949	4. Delivery.
950	950	5. Equipment.
951	951	6. The learning environment.
952	952	7. Student support services.
953	953	8. Educational effectiveness and assessment of student
954	954	learning outcomes.
955	955	9. Commitment to ongoing support of the of the course.
956	956	(k)(p) The commission shall establish one-year or
957	957	multi-year approvallicense periods for schools, prelicense
958	958	instructors, administrators, and courses. Approval and
959	959	licenseLicense periods shall run from October 1 of the first
960	960	year of the approvallicense period through September 30 of the
961	961	final year of the approvallicense period.
962	962	(l)(q) The commission shall promulgateadopt rules and
963	963	regulations as necessary to accomplish the purpose of this
964	964	section in accordance with the Administrative Procedure Act."
965	965	"§34-27-8
966	966	(a) A majority of the commission members shall
967	967	449
968	968	450
969	969	451
970	970	452
971	971	453
972	972	454
973	973	455
974	974	456
975	975	457
976	976	458
977	977	459
978	978	460
979	979	461
980	980	462
981	981	463
982	982	464
983	983	465
984	984	466
985	985	467
986	986	468
987	987	469
988	988	470
989	989	471
990	990	472
991	991	473
992	992	474
993	993	475
994	994	476 HB3 INTRODUCED
995	995	Page 18
996	996	(a) A majority of the commission members shall
997	997	constitute a quorum for the conduct of commission business.
998	998	The commission may adopt and enforce all rules and regulations
999	999	pursuant to the state administrative procedure statutes
1000	1000	necessary for the administration of this chapter, and to
1001	1001	otherwise do all things necessary and convenient for effecting
1002	1002	this chapter.
1003	1003	(b) In addition to the powers granted in this section,
1004	1004	the commission may adopt and enforce rules and regulations
1005	1005	governing the requirements of agency disclosure by licensed
1006	1006	brokers and salespersons.
1007	1007	(c) Each offer to purchase prepared after August 1,
1008	1008	1998, shall have prominently displayed the following AGENCY
1009	1009	DISCLOSURE clause which shall be completed and initialed as
1010	1010	indicated:
1011	1011	The listing company _________ is:
1012	1012	(Two blocks may be checked)
1013	1013	____ An agent of the seller.
1014	1014	____ An agent of the buyer.
1015	1015	____ An agent of both the seller and buyer and is
1016	1016	acting as a limited consensual dual agent.
1017	1017	____ Assisting the _____ buyer _____ seller as a
1018	1018	transaction broker.
1019	1019	The selling company _________ is:
1020	1020	(Two blocks may be checked)
1021	1021	____ An agent of the seller.
1022	1022	____ An agent of the buyer.
1023	1023	____ An agent of both the seller and buyer and is
1024	1024	acting as a limited consensual dual agent.
1025	1025	477
1026	1026	478
1027	1027	479
1028	1028	480
1029	1029	481
1030	1030	482
1031	1031	483
1032	1032	484
1033	1033	485
1034	1034	486
1035	1035	487
1036	1036	488
1037	1037	489
1038	1038	490
1039	1039	491
1040	1040	492
1041	1041	493
1042	1042	494
1043	1043	495
1044	1044	496
1045	1045	497
1046	1046	498
1047	1047	499
1048	1048	500
1049	1049	501
1050	1050	502
1051	1051	503
1052	1052	504 HB3 INTRODUCED
1053	1053	Page 19
1054	1054	acting as a limited consensual dual agent.
1055	1055	____ Assisting the _____ buyer _____ seller as a
1056	1056	transaction broker. "
1057	1057	"§34-27-32
1058	1058	(a) A license for a broker or a salesperson shall be
1059	1059	registered to a specific real estate office and shall be
1060	1060	issued only to, and held only by, a person who meets all of
1061	1061	the following requirements:
1062	1062	(1) Is trustworthy and competent to transact the
1063	1063	business of a broker or salesperson in a manner that
1064	1064	safeguards the interest of the public.
1065	1065	(2) Is a person whose application for real estate
1066	1066	licensure has not been rejected in any state on any grounds
1067	1067	other than failure to pass a written examination within the
1068	1068	two years prior to the application for real estate licensure
1069	1069	with Alabama. If the applicant's rejection for real estate
1070	1070	licensure in any state is more than two years from the date of
1071	1071	application for licensure with Alabama, then the applicant may
1072	1072	not be issued an Alabama real estate license without the
1073	1073	approval of the commissioners.
1074	1074	(3) Is a person whose real estate license has not been
1075	1075	revoked in any state within the two years prior to application
1076	1076	for real estate licensure with Alabama. If the applicant's
1077	1077	real estate licensure revocation in any state, including
1078	1078	Alabama, is more than two years from the date of application
1079	1079	for licensure with Alabama then the applicant may not be
1080	1080	issued an Alabama real estate license without the approval of
1081	1081	the commissioners.
1082	1082	(4) Is at least 19 years old.
1083	1083	505
1084	1084	506
1085	1085	507
1086	1086	508
1087	1087	509
1088	1088	510
1089	1089	511
1090	1090	512
1091	1091	513
1092	1092	514
1093	1093	515
1094	1094	516
1095	1095	517
1096	1096	518
1097	1097	519
1098	1098	520
1099	1099	521
1100	1100	522
1101	1101	523
1102	1102	524
1103	1103	525
1104	1104	526
1105	1105	527
1106	1106	528
1107	1107	529
1108	1108	530
1109	1109	531
1110	1110	532 HB3 INTRODUCED
1111	1111	Page 20
1112	1112	(4) Is at least 19 years old.
1113	1113	(5) Is a citizen of the United States or, if not a
1114	1114	citizen of the United States, a person who is legally present
1115	1115	in the United States with appropriate documentation from the
1116	1116	federal government, or is an alien with permanent resident
1117	1117	status.
1118	1118	(6) Is a person who, if a nonresident, agrees to sign
1119	1119	an affidavit stating the following and in the following form:
1120	1120	"I, as a nonresident applicant for a real estate
1121	1121	license and as a licensee, agree that the Alabama Real Estate
1122	1122	Commission shall have jurisdiction over me in any and all of
1123	1123	my real estate related activities the same as if I were an
1124	1124	Alabama resident licensee. I agree to be subject to
1125	1125	investigations and disciplinary actions the same as Alabama
1126	1126	resident licensees. Further, I agree that civil actions may be
1127	1127	commenced against me in any court of competent jurisdiction in
1128	1128	any county of the State of Alabama.
1129	1129	"I hereby appoint the Executive Director or the
1130	1130	Assistant Executive Director of the Alabama Real Estate
1131	1131	Commission as my agent upon whom all disciplinary, judicial,
1132	1132	or other process or legal notices may be served. I agree that
1133	1133	any service upon my agent shall be the same as service upon me
1134	1134	and that certified copies of this appointment shall be deemed
1135	1135	sufficient evidence and shall be admitted into evidence with
1136	1136	the same force and effect as the original might be admitted. I
1137	1137	agree that any lawful process against me which is served upon
1138	1138	my agent shall be of the same legal force and validity as if
1139	1139	personally served upon me and that this appointment shall
1140	1140	continue in effect for as long as I have any liability
1141	1141	533
1142	1142	534
1143	1143	535
1144	1144	536
1145	1145	537
1146	1146	538
1147	1147	539
1148	1148	540
1149	1149	541
1150	1150	542
1151	1151	543
1152	1152	544
1153	1153	545
1154	1154	546
1155	1155	547
1156	1156	548
1157	1157	549
1158	1158	550
1159	1159	551
1160	1160	552
1161	1161	553
1162	1162	554
1163	1163	555
1164	1164	556
1165	1165	557
1166	1166	558
1167	1167	559
1168	1168	560 HB3 INTRODUCED
1169	1169	Page 21
1170	1170	continue in effect for as long as I have any liability
1171	1171	remaining in the State of Alabama. I understand that my agent
1172	1172	shall, within a reasonable time after service upon him or her,
1173	1173	mail a copy of the service by certified mail, return receipt
1174	1174	requested, to me at my last known business address.
1175	1175	"I agree that I am bound by all the provisions of the
1176	1176	Alabama Real Estate License Law the same as if I were a
1177	1177	resident of the State of Alabama.
1178	1178	___________________Legal Signature of Applicant"
1179	1179	The commission may reject the application of any person
1180	1180	who has been convicted of or pleaded guilty or nolo contendere
1181	1181	to a felony or a crime involving moral turpitude.
1182	1182	(b)(1)a. A person who holds a current real estate
1183	1183	salesperson license in another state, including persons who
1184	1184	move to and become residents of Alabama, shall apply for a
1185	1185	reciprocal salesperson license on a form prescribed by the
1186	1186	commission. A person who holds a current broker license in
1187	1187	another state, including persons who move to and become
1188	1188	residents of Alabama, shall apply for a reciprocal broker
1189	1189	license on a form prescribed by the commission .
1190	1190	b. The applicant shall submit proof that he or she has
1191	1191	a current real estate license in another state as evidenced by
1192	1192	a certificate of licensure, together with any other
1193	1193	information required by the commission. The applicant shall
1194	1194	also show proof that he or she has completed at least six
1195	1195	hours of course work in Alabama real estate which is approved
1196	1196	by the commission. Applicants for a reciprocal license shall
1197	1197	not be subject to the complete examination or temporary
1198	1198	license requirements of Section 34-27-33, but shall pass a
1199	1199	561
1200	1200	562
1201	1201	563
1202	1202	564
1203	1203	565
1204	1204	566
1205	1205	567
1206	1206	568
1207	1207	569
1208	1208	570
1209	1209	571
1210	1210	572
1211	1211	573
1212	1212	574
1213	1213	575
1214	1214	576
1215	1215	577
1216	1216	578
1217	1217	579
1218	1218	580
1219	1219	581
1220	1220	582
1221	1221	583
1222	1222	584
1223	1223	585
1224	1224	586
1225	1225	587
1226	1226	588 HB3 INTRODUCED
1227	1227	Page 22
1228	1228	license requirements of Section 34-27-33, but shall pass a
1229	1229	reasonable written examination prepared by the commission on
1230	1230	the subject of Alabama real estate. A person who holds a
1231	1231	reciprocal license shall show proof of completion of
1232	1232	continuing education either by meeting the requirements of
1233	1233	Section 34-27-35 or by showing proof that his or her other
1234	1234	state license remains active in that state.
1235	1235	c. The fees for issuance and renewal of a reciprocal
1236	1236	license shall be the same as those for original licenses
1237	1237	pursuant to Section 34-27-35. The recovery fund fee for
1238	1238	issuance of a reciprocal license shall be the same as for an
1239	1239	original license pursuant to Section 34-27-31.
1240	1240	(2) A person who holds a current Alabama license who
1241	1241	moves to and becomes a resident of the state shall within 10
1242	1242	days submit to the commission notice of change of address and
1243	1243	all other license status changes.
1244	1244	(c) A person who does not hold a current real estate
1245	1245	broker license in another state desiring to be a real estate
1246	1246	broker in this state shall apply for a broker'sbroker license
1247	1247	on a form prescribed by the commission which shall specify the
1248	1248	real estate office to which he or she is registered . Along
1249	1249	with the application, he or she shall submit all of the
1250	1250	following:
1251	1251	(1) Proof that he or she has had an active real estate
1252	1252	salesperson's salesperson license in any state for at least 24
1253	1253	months of the 36-month period immediately preceding the date
1254	1254	of application.
1255	1255	(2) Proof that he or she is a high school graduate or
1256	1256	the equivalent.
1257	1257	589
1258	1258	590
1259	1259	591
1260	1260	592
1261	1261	593
1262	1262	594
1263	1263	595
1264	1264	596
1265	1265	597
1266	1266	598
1267	1267	599
1268	1268	600
1269	1269	601
1270	1270	602
1271	1271	603
1272	1272	604
1273	1273	605
1274	1274	606
1275	1275	607
1276	1276	608
1277	1277	609
1278	1278	610
1279	1279	611
1280	1280	612
1281	1281	613
1282	1282	614
1283	1283	615
1284	1284	616 HB3 INTRODUCED
1285	1285	Page 23
1286	1286	the equivalent.
1287	1287	(3) Proof that he or she has completed a course in real
1288	1288	estate approved by the commission, which shall be a minimum of
1289	1289	60 clock hourshas completed a course in real estate approved
1290	1290	by the commission, which shall be a minimum of 60 clock hours.
1291	1291	(4) Proof that he or she has met all of the following
1292	1292	requirements.:
1293	1293	a. Successfully completed a course in broker basics
1294	1294	approved by the commission.
1295	1295	b. Passed a license examination within 90 days after
1296	1296	completion of the broker basics course.
1297	1297	c. Within 90 days after passing the license
1298	1298	examination, successfully completed a course in professional
1299	1299	development approved by the commission.
1300	1300	(4)(5) Any other information requested by the
1301	1301	commission.
1302	1302	(d) A person who does not hold a current real estate
1303	1303	salesperson license in another state desiring to be a real
1304	1304	estate salesperson in this state shall apply for a
1305	1305	salesperson's license with the commission on a form prescribed
1306	1306	by the commission which shall specify the real estate office
1307	1307	to which he or she is registered . Along with the application
1308	1308	he or she shall furnishprovide all of the following:
1309	1309	(1) Proof that he or she is a high school graduate or
1310	1310	the equivalent.
1311	1311	(2) Proof that he or she has successfully completed a
1312	1312	course in real estate approved by the commission, which shall
1313	1313	be a minimum of 60 clock hours met all of the following
1314	1314	requirements.:
1315	1315	617
1316	1316	618
1317	1317	619
1318	1318	620
1319	1319	621
1320	1320	622
1321	1321	623
1322	1322	624
1323	1323	625
1324	1324	626
1325	1325	627
1326	1326	628
1327	1327	629
1328	1328	630
1329	1329	631
1330	1330	632
1331	1331	633
1332	1332	634
1333	1333	635
1334	1334	636
1335	1335	637
1336	1336	638
1337	1337	639
1338	1338	640
1339	1339	641
1340	1340	642
1341	1341	643
1342	1342	644 HB3 INTRODUCED
1343	1343	Page 24
1344	1344	requirements.:
1345	1345	a. Successfully completed a salesperson basics course
1346	1346	approved by the commission.
1347	1347	b. Passed a license examination within 90 days after
1348	1348	completing the salesperson basics course.
1349	1349	c. Within 90 days after passing the license
1350	1350	examination, successfully completed a course approved by the
1351	1351	commission in salesperson professional development.
1352	1352	(3) The name of the applicant's qualifying broker,
1353	1353	along with the information required pursuant to Section
1354	1354	34-27-33.
1355	1355	(3)(4) Any other information required by the
1356	1356	commission.
1357	1357	(e) An application for a company license or branch
1358	1358	office license shall be made by a qualifying broker on a form
1359	1359	prescribed by the commission. The qualifying broker shall be
1360	1360	an officer, partner, or employee of the company.
1361	1361	(f) An applicant for a company or broker license shall
1362	1362	maintain a place of business.
1363	1363	(g) If the applicant for a company or broker license
1364	1364	maintains more than one place of business in the state, he or
1365	1365	she shall have a company or branch office license for each
1366	1366	separate location or branch office. Every application shall
1367	1367	state the location of the company or branch office and the
1368	1368	name of its qualifying broker. Each company or branch office
1369	1369	shall be under the direction and supervision of a qualifying
1370	1370	broker licensed at that address. No person may serve as
1371	1371	qualifying broker at more than one location. The qualifying
1372	1372	broker for the branch office and the qualifying broker for the
1373	1373	645
1374	1374	646
1375	1375	647
1376	1376	648
1377	1377	649
1378	1378	650
1379	1379	651
1380	1380	652
1381	1381	653
1382	1382	654
1383	1383	655
1384	1384	656
1385	1385	657
1386	1386	658
1387	1387	659
1388	1388	660
1389	1389	661
1390	1390	662
1391	1391	663
1392	1392	664
1393	1393	665
1394	1394	666
1395	1395	667
1396	1396	668
1397	1397	669
1398	1398	670
1399	1399	671
1400	1400	672 HB3 INTRODUCED
1401	1401	Page 25
1402	1402	broker for the branch office and the qualifying broker for the
1403	1403	company shall share equal responsibility for the real estate
1404	1404	activities of all licensees assigned to the branch office or
1405	1405	company.
1406	1406	(h)(1) No person shall be a qualifying broker for more
1407	1407	than one company or for a company and on his or her own behalf
1408	1408	unless he or she meets all of the following requirements :
1409	1409	(1)a. All companies for which he or she is and proposes
1410	1410	to be the qualifying broker consent in writing.
1411	1411	(2)b. He or she files a copy of the written consent
1412	1412	with the commission.
1413	1413	(3)c.He or she will be doing business from the same
1414	1414	locationAll companies for which her or she is and proposes to
1415	1415	be the qualifying broker share the same company address .
1416	1416	(2) A person licensed under a qualifying broker may be
1417	1417	engaged by one or more companies with the same qualifying
1418	1418	broker.
1419	1419	(3) A person may utilize any office of a company under
1420	1420	which he or she is licensed.
1421	1421	(i) A company license shall become invalid on the death
1422	1422	or disability of a qualifying broker. Within 30 days after the
1423	1423	death or disability, the corporation, or the remaining
1424	1424	partners or the successor partnership, if any, may designate
1425	1425	another of its officers, members, or salespersons to apply for
1426	1426	a license as temporary qualifying broker. The person
1427	1427	designated as temporary qualifying broker shall either be a
1428	1428	broker or have been a salesperson for at least one year prior
1429	1429	to filing the application. If the application is granted, the
1430	1430	company may operate under that temporary qualifying broker for
1431	1431	673
1432	1432	674
1433	1433	675
1434	1434	676
1435	1435	677
1436	1436	678
1437	1437	679
1438	1438	680
1439	1439	681
1440	1440	682
1441	1441	683
1442	1442	684
1443	1443	685
1444	1444	686
1445	1445	687
1446	1446	688
1447	1447	689
1448	1448	690
1449	1449	691
1450	1450	692
1451	1451	693
1452	1452	694
1453	1453	695
1454	1454	696
1455	1455	697
1456	1456	698
1457	1457	699
1458	1458	700 HB3 INTRODUCED
1459	1459	Page 26
1460	1460	company may operate under that temporary qualifying broker for
1461	1461	no more than six months after the death or disability of its
1462	1462	former qualifying broker temporary qualifying broker license is
1463	1463	issued. Unless the company designates a fully licensed broker
1464	1464	as the qualifying broker within the six months, the company
1465	1465	license and all licenses under the company shall be classified
1466	1466	inactive by the commission.
1467	1467	(j) The commission shall require both state and
1468	1468	national criminal history background checks to issue a
1469	1469	license. Applicants shall submit required information and
1470	1470	fingerprints to the commission, Federal Bureau of
1471	1471	Investigation, Alabama State Law Enforcement Agency, or its
1472	1472	successor, or to a fingerprint processing service that may be
1473	1473	selected by the commission for this purpose. Criminal history
1474	1474	record information shall be provided to the commission from
1475	1475	both the State of Alabama and the Federal Bureau of
1476	1476	Investigation. The commission can use the provided criminal
1477	1477	history for the determination of the qualifications and
1478	1478	fitness of the applicant to hold a real estate license. The
1479	1479	applicant shall assume the cost of the criminal history check.
1480	1480	The criminal history mustshall be current to the issuance of
1481	1481	the license.
1482	1482	(k) The commission may charge a fee of ten dollars
1483	1483	($10) for furnishing any person a copy of a license,
1484	1484	certificate, or other official record of the commissioner.
1485	1485	(l) The language amending this section pursuant to this
1486	1486	act shall only apply to licenses issued on or after October 1,
1487	1487	2024
1488	1488	"§34-27-33
1489	1489	701
1490	1490	702
1491	1491	703
1492	1492	704
1493	1493	705
1494	1494	706
1495	1495	707
1496	1496	708
1497	1497	709
1498	1498	710
1499	1499	711
1500	1500	712
1501	1501	713
1502	1502	714
1503	1503	715
1504	1504	716
1505	1505	717
1506	1506	718
1507	1507	719
1508	1508	720
1509	1509	721
1510	1510	722
1511	1511	723
1512	1512	724
1513	1513	725
1514	1514	726
1515	1515	727
1516	1516	728 HB3 INTRODUCED
1517	1517	Page 27
1518	1518	"§34-27-33
1519	1519	(a)(1) In addition to other requirements of this
1520	1520	chapterPursuant to Section 34-27-32 , every applicant for a
1521	1521	broker's or salesperson's license shall submit to a reasonable
1522	1522	written examination. The commission shall conduct examinations
1523	1523	at places and times it prescribes. The commission may contract
1524	1524	with an independent testing agency to prepare, grade, or
1525	1525	conduct the examination.
1526	1526	(2) Effective October 1, 2001, and thereafter, the The
1527	1527	fee for each examination and the provisions for payment and
1528	1528	forfeiture shall be as specified in the contract with the
1529	1529	independent testing agency.
1530	1530	(b)(1) Within 90 days after passing the examination,
1531	1531	the applicant shall complete a professional development course
1532	1532	that meets all of the requirements of this chapter, and secure
1533	1533	a qualifying broker . and meet all requirements of this chapter
1534	1534	and theThe board shall thereafter issue an active license or
1535	1535	classify the license as inactive.
1536	1536	(2) In order to obtain an active license, the
1537	1537	applicant's qualifying broker shall sign and submitacknowledge
1538	1538	to the commission a sworn statement that the applicant is in
1539	1539	his or her opinion honest, trustworthy, and of good reputation
1540	1540	and that the broker accepts responsibility for the actions of
1541	1541	the salesperson as set out in Section 34-27-31. The
1542	1542	applicant's qualifying broker shall be licensed in hold an
1543	1543	active Alabama license.
1544	1544	(c)(1) On passing the examination and complying with
1545	1545	all other conditions for licensure, a temporary license
1546	1546	certificate shall be issued to the applicant. The applicant is
1547	1547	729
1548	1548	730
1549	1549	731
1550	1550	732
1551	1551	733
1552	1552	734
1553	1553	735
1554	1554	736
1555	1555	737
1556	1556	738
1557	1557	739
1558	1558	740
1559	1559	741
1560	1560	742
1561	1561	743
1562	1562	744
1563	1563	745
1564	1564	746
1565	1565	747
1566	1566	748
1567	1567	749
1568	1568	750
1569	1569	751
1570	1570	752
1571	1571	753
1572	1572	754
1573	1573	755
1574	1574	756 HB3 INTRODUCED
1575	1575	Page 28
1576	1576	certificate shall be issued to the applicant. The applicant is
1577	1577	not licensed until he or she or his or her qualifying broker
1578	1578	actually receives the temporary license certificate. A
1579	1579	temporary license shall be valid only for a period of one year
1580	1580	following the first day of the month after its issuance .
1581	1581	(2) a. The holder of a temporary license shall not be
1582	1582	issued an original license until he or she has satisfactorily
1583	1583	completed a 30-hour post-license course prescribed by the
1584	1584	commissionsubmits to the commission both of the following:
1585	1585	1. Proof of successful completion of a 15-hour
1586	1586	orientation as prescribed by the commission, in the
1587	1587	applicant's real estate practice area.
1588	1588	2. A complete core competencies checklist on a form
1589	1589	prescribed by the commission and signed by the applicant's
1590	1590	qualifying broker .
1591	1591	b. TheIf the holder of a temporary license must
1592	1592	complete the course fails to complete the application for an
1593	1593	original license with required documentation within six
1594	1594	months90 days following of issuance of his or her temporary
1595	1595	license,and have his or her original license issued,
1596	1596	otherwise his or her temporary license certificate shall
1597	1597	automatically be placed on inactive status by the commission.
1598	1598	During the remaining six months his or her temporary license
1599	1599	is valid, the holder of a temporary license may complete the
1600	1600	course and have his or her original license issued. If the
1601	1601	holder of a temporary license does not complete the course and
1602	1602	have his or her original license issued within one year
1603	1603	following the first day of the month after its issuance, the
1604	1604	temporary license shall automatically expire and lapse.
1605	1605	757
1606	1606	758
1607	1607	759
1608	1608	760
1609	1609	761
1610	1610	762
1611	1611	763
1612	1612	764
1613	1613	765
1614	1614	766
1615	1615	767
1616	1616	768
1617	1617	769
1618	1618	770
1619	1619	771
1620	1620	772
1621	1621	773
1622	1622	774
1623	1623	775
1624	1624	776
1625	1625	777
1626	1626	778
1627	1627	779
1628	1628	780
1629	1629	781
1630	1630	782
1631	1631	783
1632	1632	784 HB3 INTRODUCED
1633	1633	Page 29
1634	1634	temporary license shall automatically expire and lapse.
1635	1635	(3)A temporary license is not subject to renewal
1636	1636	procedures in this chapter and may not be renewed An inactive
1637	1637	temporary license must be renewed at the proper time if an
1638	1638	original license has not been issued. If a temporary license
1639	1639	remains inactive for more than three years, the licensee must
1640	1640	retake the 45-hour salesperson professional development course
1641	1641	prior to activating the license .
1642	1642	(3)(4) In order to have the status of an inactive
1643	1643	temporary license issuedchanged to active status, the
1644	1644	applicant shall pay the Recovery Fund fee specified in this
1645	1645	chapter. The holder of a temporary license shall, upon
1646	1646	satisfactory completion of the course, pay the original
1647	1647	license fee specified in this chapter to have his or her
1648	1648	original license issued. An applicant for an original license
1649	1649	who has paid the Recovery Fund fee specified in this chapter
1650	1650	shall not be required to pay another Recovery Fund fee in
1651	1651	order to have his or her original license issued.
1652	1652	(4) The holder of an original license who has
1653	1653	satisfactorily completed the postlicense course and whose
1654	1654	original license has been issued, shall not be subject to the
1655	1655	continuing education requirements in this chapter for the
1656	1656	first renewal of his or her original license.
1657	1657	(d) This section shall become effective for licenses
1658	1658	issued beginning October 1, 1993. "
1659	1659	"§34-27-34
1660	1660	(a)(1) A broker may serve as qualifying broker for a
1661	1661	salesperson or associate broker only if licensed in Alabama,
1662	1662	his or her principal business is that of a real estate broker,
1663	1663	785
1664	1664	786
1665	1665	787
1666	1666	788
1667	1667	789
1668	1668	790
1669	1669	791
1670	1670	792
1671	1671	793
1672	1672	794
1673	1673	795
1674	1674	796
1675	1675	797
1676	1676	798
1677	1677	799
1678	1678	800
1679	1679	801
1680	1680	802
1681	1681	803
1682	1682	804
1683	1683	805
1684	1684	806
1685	1685	807
1686	1686	808
1687	1687	809
1688	1688	810
1689	1689	811
1690	1690	812 HB3 INTRODUCED
1691	1691	Page 30
1692	1692	his or her principal business is that of a real estate broker,
1693	1693	and he or she shall be in a position to actually supervise the
1694	1694	real estate activities of the associate broker or salesperson
1695	1695	on a full-time basis A person concurrently licensed as a broker
1696	1696	in another state who has reciprocally obtained a broker
1697	1697	license in this state may serve as a qualifying broker over a
1698	1698	salesperson or associate broker if he or she meets all of the
1699	1699	following requirements:
1700	1700	a. Real estate is his or her principal business.
1701	1701	b. He or she is in a position to actually supervise the
1702	1702	real estate activities of the associate broker or salesperson
1703	1703	on a full-time basis.
1704	1704	c. He or she has held an active broker license for at
1705	1705	last 24 of the last 36 months .
1706	1706	(2) A person licensed as a broker in this who is not
1707	1707	currently licensed as a broker in another sate may serve as
1708	1708	qualifying broker over a salesperson or associate broker if he
1709	1709	or she meets all of the following requirements:
1710	1710	a. Real estate is his or her principal business
1711	1711	b. He or she is in a position to actually supervise the
1712	1712	real estate activities of the associate broker or salesperson
1713	1713	on a full-time basis.
1714	1714	c. He or she has held an active broker license for at
1715	1715	last 24 of the last 36 months.
1716	1716	d. He or she has attended a qualifying broker training
1717	1717	provided by the commission.
1718	1718	(2)(3)a. A salesperson or associate broker shall not
1719	1719	perform acts for which a license is required unless licensed
1720	1720	under a qualifying broker.
1721	1721	813
1722	1722	814
1723	1723	815
1724	1724	816
1725	1725	817
1726	1726	818
1727	1727	819
1728	1728	820
1729	1729	821
1730	1730	822
1731	1731	823
1732	1732	824
1733	1733	825
1734	1734	826
1735	1735	827
1736	1736	828
1737	1737	829
1738	1738	830
1739	1739	831
1740	1740	832
1741	1741	833
1742	1742	834
1743	1743	835
1744	1744	836
1745	1745	837
1746	1746	838
1747	1747	839
1748	1748	840 HB3 INTRODUCED
1749	1749	Page 31
1750	1750	under a qualifying broker.
1751	1751	b. A qualifying broker shall be held responsible to the
1752	1752	commission and to the public for all acts governed by this
1753	1753	chapter of each salesperson and associate broker licensed
1754	1754	under him or her and of each company for which he or she is
1755	1755	the qualifying broker. It shall be the duty of the qualifying
1756	1756	broker to see that all transactions of every licensee engaged
1757	1757	by him or her or any company for which he or she is the
1758	1758	qualifying broker comply with this chapter.
1759	1759	c. Additionally, the A qualifying broker shall be
1760	1760	responsible to an injured party for the damage caused by any
1761	1761	violation of this chapter by any licensee engaged by the
1762	1762	qualifying broker. This subsection does not relieve a licensee
1763	1763	from liability that he or she would otherwise have.
1764	1764	(3)d. The qualifying brokers'broker's supervision
1765	1765	responsibilities, as prescribed herein, over the real estate
1766	1766	activities of associate brokers and salespersons licensed
1767	1767	under him or her are not intended to create, and should not be
1768	1768	construed as creating , an employer-employee relationship
1769	1769	contrary to any expressed intent of the qualifying broker and
1770	1770	licensee to the contrary.
1771	1771	(b)(1) Any salesperson or associate broker who desires
1772	1772	to change his or her qualifying broker shall give notice in
1773	1773	writing to the commission, and shall send a copy of the notice
1774	1774	to his or her qualifying broker. The new qualifying broker
1775	1775	shall file with the commission a request for the transfer and
1776	1776	a statement assuming liability for the licensee. In order to
1777	1777	transfer a license, the applicant' new qualifying broker shall
1778	1778	acknowledge to the commission that in his or her opinion the
1779	1779	841
1780	1780	842
1781	1781	843
1782	1782	844
1783	1783	845
1784	1784	846
1785	1785	847
1786	1786	848
1787	1787	849
1788	1788	850
1789	1789	851
1790	1790	852
1791	1791	853
1792	1792	854
1793	1793	855
1794	1794	856
1795	1795	857
1796	1796	858
1797	1797	859
1798	1798	860
1799	1799	861
1800	1800	862
1801	1801	863
1802	1802	864
1803	1803	865
1804	1804	866
1805	1805	867
1806	1806	868 HB3 INTRODUCED
1807	1807	Page 32
1808	1808	acknowledge to the commission that in his or her opinion the
1809	1809	applicant is honest, trustworthy, of good reputation, and that
1810	1810	the broker accepts responsibility for the actions of the
1811	1811	salesperson under Section 34-27-31.
1812	1812	(2) On payment of a fee of twenty-five dollars ($25), a
1813	1813	new license certificate shall be issued to the new qualifying
1814	1814	broker on behalf of the salesperson or associate broker for
1815	1815	the unexpired term of the original license. A fee of
1816	1816	twenty-five dollars ($25) shall also be charged for any of the
1817	1817	following license changes:
1818	1818	(1)a. Change of qualifying broker by a company or sole
1819	1819	proprietorship. Prior to the effective date of the act
1820	1820	amending this section, Thethe fee isshall be paid for theeach
1821	1821	license or licenses on which the current and new qualifying
1822	1822	brokers'broker's names appear. In cases where a company has a
1823	1823	branch office or offices and the main office qualifying broker
1824	1824	is changed, the fee is paid for each branch office license and
1825	1825	for the license of each branch qualifying broker.
1826	1826	(2)b. Change of personal name of a qualifying broker.
1827	1827	Within 30 days following name change, Thethe fee is shall be
1828	1828	paid for theeach license or licenses on which the current
1829	1829	qualifying broker's name appears.
1830	1830	(3)c. Change of personal name of a salesperson or
1831	1831	associate broker. Within 30 days after the name change, Thethe
1832	1832	fee is shall be paid for the license on which the name
1833	1833	appears.
1834	1834	(4)d. Change of business location. The fee is paid for
1835	1835	the license or licenses on which the address appears.
1836	1836	(5)e. Change of business name. The fee is paid for the
1837	1837	869
1838	1838	870
1839	1839	871
1840	1840	872
1841	1841	873
1842	1842	874
1843	1843	875
1844	1844	876
1845	1845	877
1846	1846	878
1847	1847	879
1848	1848	880
1849	1849	881
1850	1850	882
1851	1851	883
1852	1852	884
1853	1853	885
1854	1854	886
1855	1855	887
1856	1856	888
1857	1857	889
1858	1858	890
1859	1859	891
1860	1860	892
1861	1861	893
1862	1862	894
1863	1863	895
1864	1864	896 HB3 INTRODUCED
1865	1865	Page 33
1866	1866	(5)e. Change of business name. The fee is paid for the
1867	1867	license or licenses on which the name appears.
1868	1868	(6)f. Change of license status from inactive to active.
1869	1869	The fee is paid for each license being changed from inactive
1870	1870	to active status. No fee is charged for the change from active
1871	1871	to inactive status.
1872	1872	(c) A personqualifying broker who wishes to terminate
1873	1873	his or her status as qualifying broker responsibility for a
1874	1874	licensee may do so by notifying the licensee and the
1875	1875	commission in writing and sending the licensee's license
1876	1876	certificate to the commission or verifying in writing to the
1877	1877	commission that the certificate has been lost or
1878	1878	destroyedplacing the licensee's license on inactive status
1879	1879	with the commission .
1880	1880	(d) A personAn individual who wishes to terminate his
1881	1881	or her status as a qualifying broker for a company may do so
1882	1882	by submitting written notice to the company or qualifying
1883	1883	brokerofficer of the parent company and the commission.
1884	1884	(e) A salesperson or associate broker shall not perform
1885	1885	any act for which a license is required after his or her
1886	1886	association with his or her qualifying broker has been
1887	1887	terminated, or if he or she changes qualifying brokers, until
1888	1888	a new active license has been issued by the commission."
1889	1889	"§34-27-35
1890	1890	(a) The commission shall prescribe the form and content
1891	1891	of license certificates issued. Each qualifying broker's
1892	1892	license certificate shall show the name and business address
1893	1893	of the broker. The license certificate of each active
1894	1894	salesperson or associate broker shall show his or her name and
1895	1895	897
1896	1896	898
1897	1897	899
1898	1898	900
1899	1899	901
1900	1900	902
1901	1901	903
1902	1902	904
1903	1903	905
1904	1904	906
1905	1905	907
1906	1906	908
1907	1907	909
1908	1908	910
1909	1909	911
1910	1910	912
1911	1911	913
1912	1912	914
1913	1913	915
1914	1914	916
1915	1915	917
1916	1916	918
1917	1917	919
1918	1918	920
1919	1919	921
1920	1920	922
1921	1921	923
1922	1922	924 HB3 INTRODUCED
1923	1923	Page 34
1924	1924	salesperson or associate broker shall show his or her name and
1925	1925	address. The license certificate of each active salesperson or
1926	1926	associate broker shall be delivered or mailed to his or her
1927	1927	qualifying broker. Each license certificate shall be kept by
1928	1928	the qualifying broker and shall be publicly displayed at the
1929	1929	address which appears on the license certificate.
1930	1930	(b) The commission may establish a one-year or
1931	1931	multi-year license period.
1932	1932	(c)(1) The fee for the temporary license shall be one
1933	1933	hundred fifty dollars ($150). The original fee for a broker's
1934	1934	license shall be one hundred fifty dollars ($150) and,
1935	1935	beginning with the license period effective October 1, 2002,
1936	1936	the renewal fee for a broker's license shall be seventy-five
1937	1937	dollars ($75) per year for each year of the license period.
1938	1938	The original fee for each salesperson's license shall be
1939	1939	sixty-five dollars ($65) per year for each year or portion of
1940	1940	a year remaining in the respective license period, and the
1941	1941	renewal fee for each salesperson's license shall be sixty-five
1942	1942	dollars ($65) per year for each year of the license period.
1943	1943	The original fee for each company license shall be sixty-five
1944	1944	dollars ($65) per year for each year or portion of a year
1945	1945	remaining in the respective license period, and the renewal
1946	1946	fee for each license shall be sixty-five dollars ($65) per
1947	1947	year for each year of the license period .
1948	1948	(2) Beginning with the license period effective October
1949	1949	1, 2004, theThe renewal fee for a broker's broker license
1950	1950	shall be ninety-five dollars ($95) per year for each year of
1951	1951	the license period. The original fee for each salesperson's
1952	1952	salesperson license shall be eighty-five dollars ($85) per
1953	1953	925
1954	1954	926
1955	1955	927
1956	1956	928
1957	1957	929
1958	1958	930
1959	1959	931
1960	1960	932
1961	1961	933
1962	1962	934
1963	1963	935
1964	1964	936
1965	1965	937
1966	1966	938
1967	1967	939
1968	1968	940
1969	1969	941
1970	1970	942
1971	1971	943
1972	1972	944
1973	1973	945
1974	1974	946
1975	1975	947
1976	1976	948
1977	1977	949
1978	1978	950
1979	1979	951
1980	1980	952 HB3 INTRODUCED
1981	1981	Page 35
1982	1982	salesperson license shall be eighty-five dollars ($85) per
1983	1983	year for each year or portion of a year remaining in the
1984	1984	respective license period, and the renewal fee for each
1985	1985	salesperson's license shall be eighty-five dollars ($85) per
1986	1986	year for each year of the license period. The original fee for
1987	1987	each company license shall be eighty-five dollars ($85) per
1988	1988	year for each year or portion of a year remaining in the
1989	1989	respective license period, and the renewal fee for each
1990	1990	license shall be eighty-five dollars ($85) per year for each
1991	1991	year of the license period.
1992	1992	(d)(1) The renewal research and education fee shall be
1993	1993	twoseven dollars and fifty cents ($2.50)($7.50) per year for
1994	1994	each year of the license period and shall be paid at the time
1995	1995	of license renewal by all brokers and salespersons in addition
1996	1996	to the license renewal fees set out in this section.
1997	1997	Collection of this fee shall apply to all broker and
1998	1998	salesperson renewals, except that brokers who hold more than
1999	1999	one broker'sbroker license shall pay the fee for only one
2000	2000	license at each renewal.
2001	2001	(2) Beginning June 1, 2014, this fee shall be seven
2002	2002	dollars and fifty cents ($7.50), and the The proceeds shall be
2003	2003	distributed to the Alabama Center for Real Estate.
2004	2004	(e) The original research and education fee shall be
2005	2005	thirty dollars ($30) and shall be paid at the time of all
2006	2006	applications received on and after October 15, 1995, for
2007	2007	issuance of an original broker 's license, and shall be paid at
2008	2008	the time of all applications received on and after October 15,
2009	2009	1995, for issuance of a temporary salesperson 's license. The
2010	2010	original research and education fee shall also be paid by
2011	2011	953
2012	2012	954
2013	2013	955
2014	2014	956
2015	2015	957
2016	2016	958
2017	2017	959
2018	2018	960
2019	2019	961
2020	2020	962
2021	2021	963
2022	2022	964
2023	2023	965
2024	2024	966
2025	2025	967
2026	2026	968
2027	2027	969
2028	2028	970
2029	2029	971
2030	2030	972
2031	2031	973
2032	2032	974
2033	2033	975
2034	2034	976
2035	2035	977
2036	2036	978
2037	2037	979
2038	2038	980 HB3 INTRODUCED
2039	2039	Page 36
2040	2040	original research and education fee shall also be paid by
2041	2041	reciprocal salespersons. This is in addition to the original
2042	2042	license fees set out in this section. This thirty dollar ($30)
2043	2043	original research and education fee is a one-time fee which no
2044	2044	person shall be required to pay more than once.
2045	2045	(f) The license of a salesperson who is subsequently
2046	2046	issued a broker's license automatically terminates upon the
2047	2047	issuance of his or her broker'sbroker license certificate.
2048	2048	The salesperson's license certificate shall be returned to the
2049	2049	commission in order for a broker's license to be issued. No
2050	2050	refund shall be made of any fee or Recovery Fund deposit
2051	2051	pertaining to the salesperson's, broker's, or company's
2052	2052	salesperson, broker, or company license once it has been in
2053	2053	effect.
2054	2054	(g) The commission shall prescribe a license renewal
2055	2055	form, which shall accompany renewal fees and which shall be
2056	2056	filed on or before August 31September 30 of the final year of
2057	2057	each license period in order for the respective license to be
2058	2058	renewed on a timely basis for the following license period. If
2059	2059	any of the foregoing are filed during the period from
2060	2060	September 1 through September 30 of the final year of a
2061	2061	license period, the one hundred fifty dollar ($150) penalty
2062	2062	set out below shall be paid in addition to the renewal fees.
2063	2063	Failure to meet this September 30 deadline shall result in the
2064	2064	license expiring and being placed on inactive status on the
2065	2065	following October 1, and the license shall be subject to all
2066	2066	reactivation requirements. Reactivations shall be processed in
2067	2067	the order received as evidenced by postmark or delivery date.
2068	2068	Certified or registered mail may be used for reactivation in
2069	2069	981
2070	2070	982
2071	2071	983
2072	2072	984
2073	2073	985
2074	2074	986
2075	2075	987
2076	2076	988
2077	2077	989
2078	2078	990
2079	2079	991
2080	2080	992
2081	2081	993
2082	2082	994
2083	2083	995
2084	2084	996
2085	2085	997
2086	2086	998
2087	2087	999
2088	2088	1000
2089	2089	1001
2090	2090	1002
2091	2091	1003
2092	2092	1004
2093	2093	1005
2094	2094	1006
2095	2095	1007
2096	2096	1008 HB3 INTRODUCED
2097	2097	Page 37
2098	2098	Certified or registered mail may be used for reactivation in
2099	2099	these cases. Licensees filing during the period from September
2100	2100	1 of the final year of a license period through filed after
2101	2101	September 30 of the initial year of a license period shall pay
2102	2102	the required license fee, plus a penalty of one hundred fifty
2103	2103	dollars ($150).
2104	2104	(h) The renewal form shall be mailed by the commission
2105	2105	to the licensee's place of business, if an active licensee, or
2106	2106	to his or her residence, if an inactive licensee, prior to
2107	2107	August 1 of the final year of each license period. Each
2108	2108	licensee shall notify the commission in writing of any change
2109	2109	in his or her business or residence address within 30 days of
2110	2110	the change.
2111	2111	(i) Every license shall expire at midnight on September
2112	2112	30 of the final year of each license period , except for a
2113	2113	temporary salesperson whose license expires 90 days after
2114	2114	issuance or a temporary broker whose license expires six
2115	2115	months after issuance . An expired license may be renewed
2116	2116	during the 12-month period following the license period for
2117	2117	which the license was current. A licensee who fails to renew
2118	2118	before the end of the 12-month period following the license
2119	2119	period for which the license was issued has a lapsed license,
2120	2120	and shall be subject to all requirements applicable to persons
2121	2121	who have never been licensed, however, the commission may upon
2122	2122	determination of hardship, allow later renewal upon payment of
2123	2123	all fees and penalties. An inactive license must be renewed in
2124	2124	the same manner as an active license.
2125	2125	(j)(1) Each applicant for renewal of an active
2126	2126	salesperson or broker license issued by the commission shall,
2127	2127	1009
2128	2128	1010
2129	2129	1011
2130	2130	1012
2131	2131	1013
2132	2132	1014
2133	2133	1015
2134	2134	1016
2135	2135	1017
2136	2136	1018
2137	2137	1019
2138	2138	1020
2139	2139	1021
2140	2140	1022
2141	2141	1023
2142	2142	1024
2143	2143	1025
2144	2144	1026
2145	2145	1027
2146	2146	1028
2147	2147	1029
2148	2148	1030
2149	2149	1031
2150	2150	1032
2151	2151	1033
2152	2152	1034
2153	2153	1035
2154	2154	1036 HB3 INTRODUCED
2155	2155	Page 38
2156	2156	salesperson or broker license issued by the commission shall,
2157	2157	on or before September 30 of the final year of each license
2158	2158	period, submitconfirm through the commission's website, proof
2159	2159	of completion of not less than 15 clock his or her continuing
2160	2160	education requirement hours of approved continuing education
2161	2161	course work to the commission, in addition to any other
2162	2162	requirements for renewal. A maximum of six one-clock-hour
2163	2163	courses shall be accepted by the commission as part of a
2164	2164	licensee's continuing education requirement. Failure to meet
2165	2165	this deadline shall result in the license being placed on
2166	2166	inactive status on the following October 1, and the license
2167	2167	shall be subject to all reactivation requirements.
2168	2168	(2)a. Reactivations shall be processed in the order
2169	2169	received as evidenced by postmark or delivery date. Certified
2170	2170	or registered mail may be used for reactivation in this case.
2171	2171	Proof of attendance at the completion of coursework, whether
2172	2172	or not the applicant attained a passing grade in the course,
2173	2173	shall be sufficient to satisfy requirements for renewal. The
2174	2174	15 clock hours' course work continuing education requirement
2175	2175	shall apply to each two-year license renewal, and hours in
2176	2176	excess of 15 shall not be cumulated or credited for the
2177	2177	purpose ofapplicable to subsequent license renewals. The
2178	2178	commission shall develop standards for approval of courses,
2179	2179	and shall require certification of the course work of the
2180	2180	applicant. No continuing education course shall be approved by
2181	2181	the commission unless the course is at least 60 minutes of
2182	2182	instruction.
2183	2183	b. Time served as a member of the state Legislature
2184	2184	during each license renewal period shall be deemed the
2185	2185	1037
2186	2186	1038
2187	2187	1039
2188	2188	1040
2189	2189	1041
2190	2190	1042
2191	2191	1043
2192	2192	1044
2193	2193	1045
2194	2194	1046
2195	2195	1047
2196	2196	1048
2197	2197	1049
2198	2198	1050
2199	2199	1051
2200	2200	1052
2201	2201	1053
2202	2202	1054
2203	2203	1055
2204	2204	1056
2205	2205	1057
2206	2206	1058
2207	2207	1059
2208	2208	1060
2209	2209	1061
2210	2210	1062
2211	2211	1063
2212	2212	1064 HB3 INTRODUCED
2213	2213	Page 39
2214	2214	during each license renewal period shall be deemed the
2215	2215	equivalent of the 15 hours course work continuing education
2216	2216	requirement and shall satisfy the requirements of this
2217	2217	subsection.
2218	2218	(2)(3)This section shall apply to renewals of licenses
2219	2219	which expire after September 30, 1986. An applicant for first
2220	2220	renewal of an original license who has been licensed for not
2221	2221	more than one year shall not be required to comply with this
2222	2222	section for the first renewal of the applicant's license. Any
2223	2223	licensee reaching the age of 65 on or before September 30,
2224	2224	2000, and having been licensed 10 years prior to that date
2225	2225	shall be exempt from this section.
2226	2226	(3)(4) Continuing education shall not result in a
2227	2227	passing or failing grade.
2228	2228	(k) A licensee may request that the commission
2229	2229	issuechange his or her license from active status to inactive
2230	2230	status. Inactive licenses shall be held at the commission
2231	2231	office until activated. No act for which a license is required
2232	2232	shall be performed under an inactive license.
2233	2233	(l) If a licensee presents a form of payment to the
2234	2234	commission, or to any third party on the commission’s behalf,
2235	2235	which is declined or rejected by a financial institution or
2236	2236	merchant service company, the licensee shall have 30 days upon
2237	2237	electronic notification from the commission to submit full and
2238	2238	valid payment for the initial fee or fine and an additional
2239	2239	fee for submitting the faulty payment, not to exceed the
2240	2240	maximum amount allowed by Section 8-8-15. Failure to submit
2241	2241	full and valid payment within 30 days of electronic
2242	2242	notification by the commission will result in the license
2243	2243	1065
2244	2244	1066
2245	2245	1067
2246	2246	1068
2247	2247	1069
2248	2248	1070
2249	2249	1071
2250	2250	1072
2251	2251	1073
2252	2252	1074
2253	2253	1075
2254	2254	1076
2255	2255	1077
2256	2256	1078
2257	2257	1079
2258	2258	1080
2259	2259	1081
2260	2260	1082
2261	2261	1083
2262	2262	1084
2263	2263	1085
2264	2264	1086
2265	2265	1087
2266	2266	1088
2267	2267	1089
2268	2268	1090
2269	2269	1091
2270	2270	1092 HB3 INTRODUCED
2271	2271	Page 40
2272	2272	notification by the commission will result in the license
2273	2273	becoming inactive. Failure to submit full and valid payment
2274	2274	within six months after electronic notification by the
2275	2275	commission will result in the license lapsing. "
2276	2276	"§34-27-36
2277	2277	(a) (1) The commission or its staff may on its own, or
2278	2278	on the verified complaint in writing of any person,
2279	2279	investigate the actions and records of a licensee. The
2280	2280	commission may issue subpoenas and compel the testimony of
2281	2281	witnesses and the production of records and documents during
2282	2282	an investigation. If probable cause is found, a formal
2283	2283	complaint shall be filed and the commission shall hold a
2284	2284	hearing on the formal complaint.
2285	2285	(2) In each instance in which a person engages in any
2286	2286	of the acts described in subsection (b), the commission may
2287	2287	impose any of the following penalties:
2288	2288	a. Impose a fine of not less than one hundred dollars
2289	2289	($100) nor more than five thousand dollars ($5,000).
2290	2290	b. Require completion of approved education course or
2291	2291	courses in addition the existing continuing education
2292	2292	requirements.
2293	2293	c. Issue a public reprimand.
2294	2294	d. Revoke or suspend any or all licenses held under
2295	2295	this chapter by the person or entity The commission shall
2296	2296	revoke or suspend the license or impose a fine of not less
2297	2297	than one hundred dollars ($100) nor more than two thousand
2298	2298	five hundred dollars ($2,500), or both, or reprimand the
2299	2299	licensee in each instance in which the licensee is found
2300	2300	guilty of any of the following acts set out in this section.
2301	2301	1093
2302	2302	1094
2303	2303	1095
2304	2304	1096
2305	2305	1097
2306	2306	1098
2307	2307	1099
2308	2308	1100
2309	2309	1101
2310	2310	1102
2311	2311	1103
2312	2312	1104
2313	2313	1105
2314	2314	1106
2315	2315	1107
2316	2316	1108
2317	2317	1109
2318	2318	1110
2319	2319	1111
2320	2320	1112
2321	2321	1113
2322	2322	1114
2323	2323	1115
2324	2324	1116
2325	2325	1117
2326	2326	1118
2327	2327	1119
2328	2328	1120 HB3 INTRODUCED
2329	2329	Page 41
2330	2330	guilty of any of the following acts set out in this section.
2331	2331	The commission may revoke or suspend a license until such time
2332	2332	as the licensee has completed an approved continuing education
2333	2333	course and/or or made restitution to accounts containing funds
2334	2334	to be held for other parties. The commission may also stay the
2335	2335	revocation or suspension of a license and require completion
2336	2336	of an approved education course and/or or the making of
2337	2337	restitution to accounts containing funds to be held for other
2338	2338	parties.
2339	2339	(b) A licensee may not do any of the following:
2340	2340	(1) Procuring or attempting to procure , a license, for
2341	2341	himself or herself or another , by fraud, misrepresentation, or
2342	2342	deceit, or by making a material misstatement of fact in an
2343	2343	application for a license.
2344	2344	(2) Engaging in misrepresentation or dishonest or
2345	2345	fraudulent acts when selling, buying, trading, or renting real
2346	2346	property of his or her own or of a spouse or child or parent.
2347	2347	(3) Making a material misrepresentation, or failing to
2348	2348	disclose to a potential purchaser or lessee any latent
2349	2349	structural defect known to the licensee or any other defect
2350	2350	known to the licensee which is not discoverable by reasonable
2351	2351	observation of a potential purchaser or lessee . Latent
2352	2352	structural defects and other defects do not refer to trivial
2353	2353	or insignificant defects but refer to those defects that would
2354	2354	be a significant factor to a reasonable and prudent person in
2355	2355	making a decision to purchase or lease.
2356	2356	(4) Making any false promises of a character likely to
2357	2357	influence, persuade, or induce any person to enter into any
2358	2358	contract or agreement.
2359	2359	1121
2360	2360	1122
2361	2361	1123
2362	2362	1124
2363	2363	1125
2364	2364	1126
2365	2365	1127
2366	2366	1128
2367	2367	1129
2368	2368	1130
2369	2369	1131
2370	2370	1132
2371	2371	1133
2372	2372	1134
2373	2373	1135
2374	2374	1136
2375	2375	1137
2376	2376	1138
2377	2377	1139
2378	2378	1140
2379	2379	1141
2380	2380	1142
2381	2381	1143
2382	2382	1144
2383	2383	1145
2384	2384	1146
2385	2385	1147
2386	2386	1148 HB3 INTRODUCED
2387	2387	Page 42
2388	2388	contract or agreement.
2389	2389	(5) Pursuing a continued and flagrant course of
2390	2390	misrepresentation or the making of false promises through
2391	2391	agents or salespersons or any medium of advertising or
2392	2392	otherwise.
2393	2393	(6) Publishing or causing to be published any
2394	2394	advertisement which deceives or which is likely to deceive the
2395	2395	public, or which in any manner tends to create a misleading
2396	2396	impression or which fails to identify the person causing the
2397	2397	advertisement to be placed as a licensed broker or
2398	2398	salesperson.
2399	2399	(7) Acting for more than one party in a transaction
2400	2400	without the knowledge and consent in writing of all parties
2401	2401	for whom he or she acts.
2402	2402	(8)a. Failing, within a reasonable time, to properly
2403	2403	account for or remit money coming into his or her possession
2404	2404	which belongs to others, or commingling money belonging to
2405	2405	others with his or her own funds.
2406	2406	b. Failing to deposit and account for at all times all
2407	2407	funds belonging to, or being held for others, in a separate
2408	2408	federally insured account or accounts in a financial
2409	2409	institution located in Alabama.
2410	2410	c. Failing to keep for at least three years a complete
2411	2411	record of funds belonging to others showing to whom the money
2412	2412	belongs, date deposited, date of withdrawal, and other
2413	2413	pertinent information for at least three years after the funds
2414	2414	have been disbursed from the trust account .
2415	2415	(9) Placing a sign on any property offering it for
2416	2416	sale, lease, or rent without the written consent of the
2417	2417	1149
2418	2418	1150
2419	2419	1151
2420	2420	1152
2421	2421	1153
2422	2422	1154
2423	2423	1155
2424	2424	1156
2425	2425	1157
2426	2426	1158
2427	2427	1159
2428	2428	1160
2429	2429	1161
2430	2430	1162
2431	2431	1163
2432	2432	1164
2433	2433	1165
2434	2434	1166
2435	2435	1167
2436	2436	1168
2437	2437	1169
2438	2438	1170
2439	2439	1171
2440	2440	1172
2441	2441	1173
2442	2442	1174
2443	2443	1175
2444	2444	1176 HB3 INTRODUCED
2445	2445	Page 43
2446	2446	sale, lease, or rent without the written consent of the
2447	2447	property owner.
2448	2448	(10) Failing to voluntarily furnish a copy of each
2449	2449	listing, contract, lease, and other document to each party
2450	2450	executing the document with reasonable promptness.
2451	2451	(11) Paying any profit, compensation, commission, or
2452	2452	fee to, or dividing any profit, compensation, commission, or
2453	2453	fee with, anyone other than a licensee or multiple listing
2454	2454	service. This subdivision shall not prevent an associate
2455	2455	broker or salesperson from owning any lawfully constituted
2456	2456	business organization, including, but not limited to, a
2457	2457	corporation or limited liability company or limited liability
2458	2458	corporation, for the purpose of receiving payments
2459	2459	contemplated in this subsection. The business organization
2460	2460	shall not be required to be licensed under this chapter, and
2461	2461	shall not engage in any other activity requiring a real estate
2462	2462	license.
2463	2463	(12) Paying or receiving any rebate from any person in
2464	2464	a real estate transaction.
2465	2465	(13) Inducing or guiding any party to a contract to
2466	2466	breakbreach the contract for the purpose of substituting a new
2467	2467	contract, where the substitution is motivated by the personal
2468	2468	gain of the licensee.
2469	2469	(14) If the licensee is a salesperson or associate
2470	2470	broker, accepting a commission or other valuable consideration
2471	2471	for performing any act for which a license is required from
2472	2472	any person except his or her qualifying broker.
2473	2473	(15) If the licensee is a qualifying broker or company,
2474	2474	allowing a salesperson or associate broker licensed under him
2475	2475	1177
2476	2476	1178
2477	2477	1179
2478	2478	1180
2479	2479	1181
2480	2480	1182
2481	2481	1183
2482	2482	1184
2483	2483	1185
2484	2484	1186
2485	2485	1187
2486	2486	1188
2487	2487	1189
2488	2488	1190
2489	2489	1191
2490	2490	1192
2491	2491	1193
2492	2492	1194
2493	2493	1195
2494	2494	1196
2495	2495	1197
2496	2496	1198
2497	2497	1199
2498	2498	1200
2499	2499	1201
2500	2500	1202
2501	2501	1203
2502	2502	1204 HB3 INTRODUCED
2503	2503	Page 44
2504	2504	allowing a salesperson or associate broker licensed under him
2505	2505	or her to advertise himself or herself as a real estate agent
2506	2506	without the name or trade name of the qualifying broker or
2507	2507	company appearing prominently on the advertising; or if the
2508	2508	licensee is a salesperson or associate broker, advertising
2509	2509	himself or herself as a real estate agent without the name or
2510	2510	trade name of the qualifying broker or company under whom the
2511	2511	salesperson or associate broker is licensed appearing
2512	2512	prominently on the advertising. For purposes of this
2513	2513	subdivision, "prominently" means use of a font size that is
2514	2514	equal to or larger in size than any other text or logo in the
2515	2515	advertisement and situated and sized for the purpose of
2516	2516	gaining the attention of consumers viewing the advertisement.
2517	2517	(16) Presenting to the commission, as payment for a fee
2518	2518	or fine, a check that is returned unpaid a. Failing, as the
2519	2519	buyer's agent, to notify the listing agent in writing within
2520	2520	three business days in the event that the buyer has not
2521	2521	deposited earnest money in accordance with a contract
2522	2522	requiring the buyer to deposit escrow funds with any person or
2523	2523	entity.
2524	2524	b. Failing, as the listing agent, to notify his or her
2525	2525	client immediately if no written receipt of escrow funds has
2526	2526	been provided to the listing agent within three business days
2527	2527	of the time specified by the contract for deposit of escrow
2528	2528	funds.
2529	2529	(17) Establishing an association, by employment or
2530	2530	otherwise, with an unlicensed person who is expected or
2531	2531	required to act as a licensee, or aiding, abetting, or
2532	2532	conspiring with a person to circumvent the requirements of
2533	2533	1205
2534	2534	1206
2535	2535	1207
2536	2536	1208
2537	2537	1209
2538	2538	1210
2539	2539	1211
2540	2540	1212
2541	2541	1213
2542	2542	1214
2543	2543	1215
2544	2544	1216
2545	2545	1217
2546	2546	1218
2547	2547	1219
2548	2548	1220
2549	2549	1221
2550	2550	1222
2551	2551	1223
2552	2552	1224
2553	2553	1225
2554	2554	1226
2555	2555	1227
2556	2556	1228
2557	2557	1229
2558	2558	1230
2559	2559	1231
2560	2560	1232 HB3 INTRODUCED
2561	2561	Page 45
2562	2562	conspiring with a person to circumvent the requirements of
2563	2563	this chapter.
2564	2564	(18) Failing to disclose to an owner the licensee's
2565	2565	intention to acquire, directly or indirectly, an interest in
2566	2566	property which he or she or his or her associates have been
2567	2567	employed to sell.
2568	2568	(19) Violating or disregarding any provision of this
2569	2569	chapter or any rule, regulation, or order of the commission.
2570	2570	(20) If a broker , accepting accepts a "net listing"
2571	2571	agreement for sale of real property or any interest therein. A
2572	2572	"net listing" is one that stipulates a net price to be
2573	2573	received by the owner with the excess due to be received by
2574	2574	the broker as his or her commission.
2575	2575	(21) Misrepresenting or failing to disclose to any
2576	2576	lender, guaranteeing agency, or any other interested party,
2577	2577	the true terms of a sale of real estate.
2578	2578	(22) Failing to inform the buyer or seller at the time
2579	2579	an offer is presented that he or she will be expected to pay
2580	2580	certain closing costs and the approximate amount of those
2581	2581	costs.
2582	2582	(23)a. Having entered a plea of guilty or nolo
2583	2583	contendere to, or having been found guilty of or convicted of
2584	2584	a felony or a crime involving moral turpitude.
2585	2585	b. Having a final money judgment rendered against him
2586	2586	or her which results from an act or omission occurring in the
2587	2587	pursuit of his or her real estate business or involves the
2588	2588	goodwill of an existing real estate business.
2589	2589	(24) Offering free lots or conducting lotteries for the
2590	2590	purpose of influencing a party to purchase or lease real
2591	2591	1233
2592	2592	1234
2593	2593	1235
2594	2594	1236
2595	2595	1237
2596	2596	1238
2597	2597	1239
2598	2598	1240
2599	2599	1241
2600	2600	1242
2601	2601	1243
2602	2602	1244
2603	2603	1245
2604	2604	1246
2605	2605	1247
2606	2606	1248
2607	2607	1249
2608	2608	1250
2609	2609	1251
2610	2610	1252
2611	2611	1253
2612	2612	1254
2613	2613	1255
2614	2614	1256
2615	2615	1257
2616	2616	1258
2617	2617	1259
2618	2618	1260 HB3 INTRODUCED
2619	2619	Page 46
2620	2620	purpose of influencing a party to purchase or lease real
2621	2621	estate.
2622	2622	(25)a. Failing to include a fixed date of expiration in
2623	2623	a written listing agreement or failing to leave a copy of the
2624	2624	written residential listing agreement or written residential
2625	2625	property management agreement with the principal.
2626	2626	b. Failing to include a fixed date of expiration, not
2627	2627	to exceed one year from the date of commencement, in a written
2628	2628	residential listing agreement.
2629	2629	c. Recording or filing a residential listing agreement
2630	2630	with a probate court or probate office to encumber the
2631	2631	property that is the subject of the listing agreement.
2632	2632	(26) Conduct which constitutes or demonstrates
2633	2633	dishonest dealings, bad faith, or untrustworthiness.
2634	2634	(27) Acting negligently or incompetently in performing
2635	2635	an act for which a person is required to hold a real estate
2636	2636	license.
2637	2637	(28) Failing or refusing on demand to produce a
2638	2638	document, book, or record in his or her possession concerning
2639	2639	a real estate transaction conducted by him or her for
2640	2640	inspection by the commission or its authorized personnel or
2641	2641	representative.
2642	2642	(29) Failing within a reasonable time to provide
2643	2643	information requested by the commission during an
2644	2644	investigation or after a formal complaint has been filed.
2645	2645	(30) Failing without cause to surrender to the rightful
2646	2646	owner, on demand, a document or instrument coming into his or
2647	2647	her possession.
2648	2648	(31) IfFailure by a qualifying broker or company,
2649	2649	1261
2650	2650	1262
2651	2651	1263
2652	2652	1264
2653	2653	1265
2654	2654	1266
2655	2655	1267
2656	2656	1268
2657	2657	1269
2658	2658	1270
2659	2659	1271
2660	2660	1272
2661	2661	1273
2662	2662	1274
2663	2663	1275
2664	2664	1276
2665	2665	1277
2666	2666	1278
2667	2667	1279
2668	2668	1280
2669	2669	1281
2670	2670	1282
2671	2671	1283
2672	2672	1284
2673	2673	1285
2674	2674	1286
2675	2675	1287
2676	2676	1288 HB3 INTRODUCED
2677	2677	Page 47
2678	2678	(31) IfFailure by a qualifying broker or company,
2679	2679	failing to keep in theirits files copies of all contracts,
2680	2680	leases, listings, and other records pertinent to real estate
2681	2681	transactions for a period of three years.
2682	2682	(32) When selling, offering to sell, assigning, or
2683	2683	offering to assign an equitable interest in a contract to
2684	2684	purchase residential real estate:
2685	2685	a. Failing to disclose in writing to a potential buyer
2686	2686	that the holder of the equitable interest is not the deed
2687	2687	holder of the property and is only offering to sell or assign
2688	2688	his or her equitable interest; or
2689	2689	b. Failing to disclose in writing to a seller of both
2690	2690	the intent to assign the seller’s real estate prior to
2691	2691	offering to assign the interest and of the assignation of the
2692	2692	interest.
2693	2693	(b)(c) If it appears that a person , firm, corporation,
2694	2694	or any business entity has engaged, or is about to engage, in
2695	2695	an act or practice constituting a violation of Article 1 or 2
2696	2696	of this chapter or any rule or order of the commission, the
2697	2697	commission, through the Attorney General, may institute legal
2698	2698	actions to enjoin the act or practice and to enforce
2699	2699	compliance with Articles 1 and 2 of this chapter or any rule
2700	2700	or order of the commission. To prevail in an action, it shall
2701	2701	not be necessary to allege or prove either that an adequate
2702	2702	remedy at law does not exist or that substantial or
2703	2703	irreparable damage would result from the continued violation.
2704	2704	(c)(d)(1) Notwithstanding any other provisions of law,
2705	2705	the commission may issue an order requiring any accused
2706	2706	person, firm, corporation, or business entity to cease and
2707	2707	1289
2708	2708	1290
2709	2709	1291
2710	2710	1292
2711	2711	1293
2712	2712	1294
2713	2713	1295
2714	2714	1296
2715	2715	1297
2716	2716	1298
2717	2717	1299
2718	2718	1300
2719	2719	1301
2720	2720	1302
2721	2721	1303
2722	2722	1304
2723	2723	1305
2724	2724	1306
2725	2725	1307
2726	2726	1308
2727	2727	1309
2728	2728	1310
2729	2729	1311
2730	2730	1312
2731	2731	1313
2732	2732	1314
2733	2733	1315
2734	2734	1316 HB3 INTRODUCED
2735	2735	Page 48
2736	2736	person, firm, corporation, or business entity to cease and
2737	2737	desist from engaging in activities requiring a license under
2738	2738	this chapter when the accused person, firm, corporation, or
2739	2739	business entity is not licensed under this chapter. The order
2740	2740	shall be entered by the executive director after a finding of
2741	2741	probable cause by the commission staff. The order shall become
2742	2742	final 15 days after its service upon the accused, unless the
2743	2743	accused requests a hearing before the commission. Upon hearing
2744	2744	the case and finding violations, the commission may make the
2745	2745	cease and desist order final and the commission may impose a
2746	2746	fine for each violation in an amount consistent with the range
2747	2747	of fines applicable to licensees, and in addition, may impose
2748	2748	a fine in the amount of any gain or economic benefit that was
2749	2749	derived from the violation, and in addition, may impose a fine
2750	2750	in the amount of the commission's costs incurred. Any fines
2751	2751	not paid as ordered shall be enforceable in any court with
2752	2752	competent jurisdiction and proper venue.
2753	2753	(2) Notwithstanding any other provisions of law, the
2754	2754	commission may decline to issue an order requiring any accused
2755	2755	person, firm, corporation, or business entity to cease and
2756	2756	desist from engaging in activities requiring a license under
2757	2757	this chapter when the accused person, firm, corporation, or
2758	2758	business entity is not licensed under this chapter. In this
2759	2759	instance, the commission shall proceed to give appropriate
2760	2760	notice of the violations and hold a hearing thereon. Upon
2761	2761	hearing the case and finding violations, the commission may
2762	2762	impose a fine for each violation in an amount consistent with
2763	2763	the range of fines applicable to licensees, and in addition,
2764	2764	may impose a fine in the amount of any gain or economic
2765	2765	1317
2766	2766	1318
2767	2767	1319
2768	2768	1320
2769	2769	1321
2770	2770	1322
2771	2771	1323
2772	2772	1324
2773	2773	1325
2774	2774	1326
2775	2775	1327
2776	2776	1328
2777	2777	1329
2778	2778	1330
2779	2779	1331
2780	2780	1332
2781	2781	1333
2782	2782	1334
2783	2783	1335
2784	2784	1336
2785	2785	1337
2786	2786	1338
2787	2787	1339
2788	2788	1340
2789	2789	1341
2790	2790	1342
2791	2791	1343
2792	2792	1344 HB3 INTRODUCED
2793	2793	Page 49
2794	2794	may impose a fine in the amount of any gain or economic
2795	2795	benefit that was derived from the violation, and in addition,
2796	2796	may impose a fine in the amount of the commission's costs
2797	2797	incurred. Any fine or fines not paid as ordered shall be
2798	2798	enforceable in any court with competent jurisdiction and
2799	2799	proper venue.
2800	2800	(d)(e) The commission shall notify the licensee and
2801	2801	qualifying broker in writing regarding the complaint.
2802	2802	(e)(f) The commission shall notify the complainant,
2803	2803	licensee, and qualifying broker in writing regarding the
2804	2804	disposition of the complaint."
2805	2805	"§34-27-81
2806	2806	As used in this article, the following words shall have
2807	2807	the following meanings:
2808	2808	(1) AGENCY AGREEMENT. A written agreement between a
2809	2809	broker and a client which creates a fiduciary relationship
2810	2810	between the broker and a principal, who is commonly referred
2811	2811	to as a clientconsumer.
2812	2812	(2) BROKER. Any person licensed as a real estate broker
2813	2813	pursuant to Articles 1 and 2 of this chapter.
2814	2814	(3) BROKERAGE AGREEMENT. A specific written agreement
2815	2815	between a brokerage firmreal estate company and a consumer
2816	2816	which establishes a brokerage relationship. The brokerage
2817	2817	agreement shall contain a statement of the terms and
2818	2818	conditions of the brokerage services to be provided.
2819	2819	(4) BROKERAGE SERVICE. Any service, except for rental
2820	2820	or property management services, provided by a broker or
2821	2821	licensee to another person and includes all activities for
2822	2822	which a real estate license is required under Articles 1 and 2
2823	2823	1345
2824	2824	1346
2825	2825	1347
2826	2826	1348
2827	2827	1349
2828	2828	1350
2829	2829	1351
2830	2830	1352
2831	2831	1353
2832	2832	1354
2833	2833	1355
2834	2834	1356
2835	2835	1357
2836	2836	1358
2837	2837	1359
2838	2838	1360
2839	2839	1361
2840	2840	1362
2841	2841	1363
2842	2842	1364
2843	2843	1365
2844	2844	1366
2845	2845	1367
2846	2846	1368
2847	2847	1369
2848	2848	1370
2849	2849	1371
2850	2850	1372 HB3 INTRODUCED
2851	2851	Page 50
2852	2852	which a real estate license is required under Articles 1 and 2
2853	2853	of this chapter.
2854	2854	(5) CONSUMER. A person who obtains information, advice,
2855	2855	or services concerning real estate from a real estate
2856	2856	licensee.
2857	2857	(6) CLIENT. A person who has an agency agreement with a
2858	2858	broker for brokerage service, whether he or she be buyer or
2859	2859	seller.
2860	2860	(7) CUSTOMER. A person who is provided brokerage
2861	2861	services by a broker or licensee but who is not a client of
2862	2862	the broker.
2863	2863	(8) DESIGNATED SINGLE AGENT. An agency agreement in
2864	2864	which two or more licensed individuals under the same
2865	2865	qualifying broker each represent a different party in the
2866	2866	transaction, as designated by the qualifying broker. In this
2867	2867	circumstance, neither the qualifying broker nor other
2868	2868	licensees involved in the transaction shall be assumed to have
2869	2869	imputed knowledge.
2870	2870	(8)(9) DUAL AGENCY. An agency relationshipagreement in
2871	2871	which the same brokerage firm a licensee, with informed written
2872	2872	consent of all parties to a transaction, represents both the
2873	2873	seller and the buyer in the same real estate transaction once
2874	2874	all parties have signed the agreement . Circumstances which
2875	2875	establish a dual agency include, but are not limited to, one
2876	2876	of the following:
2877	2877	a. When two or more licensees licensed under the same
2878	2878	broker each represent a different party to the transaction.
2879	2879	b. When one licensee represents both the buyer and
2880	2880	seller in a real estate transaction.
2881	2881	1373
2882	2882	1374
2883	2883	1375
2884	2884	1376
2885	2885	1377
2886	2886	1378
2887	2887	1379
2888	2888	1380
2889	2889	1381
2890	2890	1382
2891	2891	1383
2892	2892	1384
2893	2893	1385
2894	2894	1386
2895	2895	1387
2896	2896	1388
2897	2897	1389
2898	2898	1390
2899	2899	1391
2900	2900	1392
2901	2901	1393
2902	2902	1394
2903	2903	1395
2904	2904	1396
2905	2905	1397
2906	2906	1398
2907	2907	1399
2908	2908	1400 HB3 INTRODUCED
2909	2909	Page 51
2910	2910	seller in a real estate transaction.
2911	2911	(9)(10) INFORMED CONSENT. A consumer's agreement to
2912	2912	allow something to happen which is based upon full disclosure
2913	2913	of facts needed to choose appropriate brokerage services.
2914	2914	(11) IMPUTED KNOWLEDGE. Knowledge attributed to a party
2915	2915	because of his or her position, relationship to another party,
2916	2916	or responsibility for another party.
2917	2917	(10)(12) LICENSEE. Any broker, salesperson, or company.
2918	2918	(11) LIMITED CONSENSUAL DUAL AGENT. A licensee who,
2919	2919	with the written informed consent of all parties to a
2920	2920	contemplated real estate transaction, is engaged as an agent
2921	2921	for both the buyer and seller. Circumstances which establish
2922	2922	dual agency include, but are not limited to, one of the
2923	2923	following:
2924	2924	a. When two or more licensees licensed under the same
2925	2925	broker each represent a different party to the transaction.
2926	2926	b. When one licensee represents both the buyer and
2927	2927	seller in a real estate transaction.
2928	2928	(12)(13) MATERIAL FACT. A fact that is of significance
2929	2929	to a reasonable party which affects the party's decision to
2930	2930	enter into a real estate contract.
2931	2931	(13)(14) QUALIFYING BROKER. A broker under whom a
2932	2932	corporation, partnership, branch office, or lawfully
2933	2933	constituted business organization, as the Legislature may from
2934	2934	time to time provide, is licensed, or a broker licensed to do
2935	2935	business as a sole proprietorship who is responsible for
2936	2936	supervising the acts of the company, or proprietorship and all
2937	2937	real estate licensees licensed therewith.
2938	2938	(14)(15) REAL ESTATE TRANSACTION. The purchase, sale,
2939	2939	1401
2940	2940	1402
2941	2941	1403
2942	2942	1404
2943	2943	1405
2944	2944	1406
2945	2945	1407
2946	2946	1408
2947	2947	1409
2948	2948	1410
2949	2949	1411
2950	2950	1412
2951	2951	1413
2952	2952	1414
2953	2953	1415
2954	2954	1416
2955	2955	1417
2956	2956	1418
2957	2957	1419
2958	2958	1420
2959	2959	1421
2960	2960	1422
2961	2961	1423
2962	2962	1424
2963	2963	1425
2964	2964	1426
2965	2965	1427
2966	2966	1428 HB3 INTRODUCED
2967	2967	Page 52
2968	2968	(14)(15) REAL ESTATE TRANSACTION. The purchase, sale,
2969	2969	lease and rental, option, or exchange of an interest in real
2970	2970	estate.
2971	2971	(15)(16) SINGLE AGENT. A licensee who has an agency
2972	2972	agreement and is engaged by and represents only one party in a
2973	2973	real estate transaction. A single agent includes, but is not
2974	2974	limited to, onemay be any of the following:
2975	2975	a. Buyer's agent, which means a broker or licensee who
2976	2976	is engaged by and represents only the buyer in a real estate
2977	2977	transaction.
2978	2978	b. Seller's agent, which means a broker or licensee who
2979	2979	is engaged by and represents only the seller in a real estate
2980	2980	transaction.
2981	2981	(16) SUB-AGENT. A licensee who is empowered to act for
2982	2982	another broker in performing real estate brokerage tasks for a
2983	2983	principal, and who owes the same duties to the principal as
2984	2984	the agent of the principal.
2985	2985	(17) TRANSACTION BROKERFACILIATOR. A licensee who
2986	2986	assists one or more parties in a contemplated real estate
2987	2987	transaction without being an agent or fiduciary or advocate
2988	2988	for the interest of that party to a transaction. The term
2989	2989	"transaction facilitator" and the term "transaction broker" in
2990	2990	Act 98-618"
2991	2991	"§34-27-82
2992	2992	(a) When engaged in any real estate transaction, the
2993	2993	licensee may act as a single agent, sub-agent, a limited
2994	2994	consensual dual agent, or as a transaction brokerfacilitator.
2995	2995	(b) At the initial contact between a licensee and the
2996	2996	consumer and until such time a brokerlicensee enters into a
2997	2997	1429
2998	2998	1430
2999	2999	1431
3000	3000	1432
3001	3001	1433
3002	3002	1434
3003	3003	1435
3004	3004	1436
3005	3005	1437
3006	3006	1438
3007	3007	1439
3008	3008	1440
3009	3009	1441
3010	3010	1442
3011	3011	1443
3012	3012	1444
3013	3013	1445
3014	3014	1446
3015	3015	1447
3016	3016	1448
3017	3017	1449
3018	3018	1450
3019	3019	1451
3020	3020	1452
3021	3021	1453
3022	3022	1454
3023	3023	1455
3024	3024	1456 HB3 INTRODUCED
3025	3025	Page 53
3026	3026	consumer and until such time a brokerlicensee enters into a
3027	3027	specific written agreement to establish an agency relationship
3028	3028	with one or more of the parties to a transaction, the licensee
3029	3029	shall be considered a transaction facilitator and not be
3030	3030	considered an agent of that consumer. An agency relationship
3031	3031	shall not be assumed, implied, or created without a written
3032	3032	bilateral agreement signed by the licensee and the consumer
3033	3033	establishing the terms of the agency relationship.
3034	3034	(c) As soon as reasonably possible and before any
3035	3035	confidential information is disclosed to any other person by a
3036	3036	licensee, the licensee shall provide a written disclosure form
3037	3037	to a consumer for signature describing the alternative types
3038	3038	of brokerage services, as identified in subsection (a), that
3039	3039	are available to clients and customers of real estate
3040	3040	brokerage companies. The licensee shall also inform a consumer
3041	3041	as to the specific types of brokerage services that are
3042	3042	provided by his or her company. A broker shall not be required
3043	3043	to offer or engage in any one or in all of the alternative
3044	3044	brokerage arrangementsservices specified in subsection (a).
3045	3045	The licensee will provide a written form to the consumer for
3046	3046	their signature describing the alternative types of brokerage
3047	3047	arrangementsservices available. All rental or property
3048	3048	management services are excluded from the requirements of this
3049	3049	subsection.
3050	3050	(d) A licensee shall not be required to comply with the
3051	3051	provisions of subsection (c) when engaged in transactions with
3052	3052	any corporation, non-profit corporation, professional
3053	3053	corporation, professional association, limited liability
3054	3054	company, partnership, any partnership created under the
3055	3055	1457
3056	3056	1458
3057	3057	1459
3058	3058	1460
3059	3059	1461
3060	3060	1462
3061	3061	1463
3062	3062	1464
3063	3063	1465
3064	3064	1466
3065	3065	1467
3066	3066	1468
3067	3067	1469
3068	3068	1470
3069	3069	1471
3070	3070	1472
3071	3071	1473
3072	3072	1474
3073	3073	1475
3074	3074	1476
3075	3075	1477
3076	3076	1478
3077	3077	1479
3078	3078	1480
3079	3079	1481
3080	3080	1482
3081	3081	1483
3082	3082	1484 HB3 INTRODUCED
3083	3083	Page 54
3084	3084	company, partnership, any partnership created under the
3085	3085	Uniform Partnership Act (commencing at Section 10-8A-101),
3086	3086	real estate investment trust, business trust, charitable
3087	3087	trust, family trust, or any governmental entity in
3088	3088	transactions involving real estate.
3089	3089	(e) After disclosure, the consumer may make an
3090	3090	affirmative election of a specific type of brokerage
3091	3091	arrangementservice that is available from the real estate
3092	3092	brokerage company. The brokerage agreement shall contain a
3093	3093	statement of the terms and conditions of the brokerage
3094	3094	services that the brokercompany will provide. In the absence
3095	3095	of a signed brokerage agreement between the parties, the
3096	3096	transaction brokeragefacilitator relationship shall remain in
3097	3097	effect.
3098	3098	(f) When serving as a transaction brokerfacilitator,
3099	3099	the duties of the licensee to all the parties to a real estate
3100	3100	transaction are limited to those which are enumerated in
3101	3101	Section 34-27-84. A signed brokerage agreement between the
3102	3102	parties or, in the absence of a signed brokerage agreement,
3103	3103	the continuation of the transaction brokeragefacilitator
3104	3104	relationship, shall constitute informed consent by the
3105	3105	consumer as to the services the consumer shall receive from
3106	3106	the broker.
3107	3107	(g) Disclosure forms shall be provided to buyers and
3108	3108	sellers. All real estate brokerage firmscompanies operating
3109	3109	within the State of Alabama shall use the same agency
3110	3110	disclosure forms. Disclosure forms describing the alternative
3111	3111	types of brokerage services identified above shall be written
3112	3112	by the Alabama Real Estate Commission.
3113	3113	1485
3114	3114	1486
3115	3115	1487
3116	3116	1488
3117	3117	1489
3118	3118	1490
3119	3119	1491
3120	3120	1492
3121	3121	1493
3122	3122	1494
3123	3123	1495
3124	3124	1496
3125	3125	1497
3126	3126	1498
3127	3127	1499
3128	3128	1500
3129	3129	1501
3130	3130	1502
3131	3131	1503
3132	3132	1504
3133	3133	1505
3134	3134	1506
3135	3135	1507
3136	3136	1508
3137	3137	1509
3138	3138	1510
3139	3139	1511
3140	3140	1512 HB3 INTRODUCED
3141	3141	Page 55
3142	3142	by the Alabama Real Estate Commission.
3143	3143	(h) Each offer to purchase shall prominently display
3144	3144	the a representation disclosure clause in the following form,
3145	3145	completed and initialed as indicated:
3146	3146	The listing licensee, _____________, is:
3147	3147	□ An agent of the seller.
3148	3148	□ A dual agent.
3149	3149	□ Assisting the seller as a transaction facilitator.
3150	3150	The selling licensee,_______________, is:
3151	3151	□ An agent of the buyer
3152	3152	□ A dual agent.
3153	3153	□ Assisting the buyer as a transaction facilitator.
3154	3154	(h)(i) Nothing in this section shall prohibit the
3155	3155	consumer from entering into a written contract with a
3156	3156	qualifying broker which contains provisions for services not
3157	3157	specifically identified in the written disclosure form."
3158	3158	"§34-27-83
3159	3159	Any qualifying broker acting in a real estate
3160	3160	transaction shall adopt a written agency disclosure office
3161	3161	policy which specifically enumerates the types of brokerage
3162	3162	service arrangements services a licensee may offer or accept.
3163	3163	(a) The qualifying broker for each brokeragereal estate
3164	3164	company shall provide every licensee a copy of the agency
3165	3165	disclosure policy regarding the types of brokerage services
3166	3166	offered by their company. This policy shall be explained to
3167	3167	all licensees at least once a year.
3168	3168	(b) A form acknowledging receipt of the agency
3169	3169	disclosure office policy statement and a satisfactory
3170	3170	explanation of its contents shall be signed by each licensee
3171	3171	1513
3172	3172	1514
3173	3173	1515
3174	3174	1516
3175	3175	1517
3176	3176	1518
3177	3177	1519
3178	3178	1520
3179	3179	1521
3180	3180	1522
3181	3181	1523
3182	3182	1524
3183	3183	1525
3184	3184	1526
3185	3185	1527
3186	3186	1528
3187	3187	1529
3188	3188	1530
3189	3189	1531
3190	3190	1532
3191	3191	1533
3192	3192	1534
3193	3193	1535
3194	3194	1536
3195	3195	1537
3196	3196	1538
3197	3197	1539
3198	3198	1540 HB3 INTRODUCED
3199	3199	Page 56
3200	3200	explanation of its contents shall be signed by each licensee
3201	3201	and a copy retained by the brokeragereal estate company for
3202	3202	three years."
3203	3203	"§34-27-84
3204	3204	(a) Licensees shall have all of the following
3205	3205	obligations to all parties in a real estate transaction:
3206	3206	(1) To provide brokerage services to all parties to the
3207	3207	transaction honestly and in good faith.
3208	3208	(2) To exercise reasonable skill and care in providing
3209	3209	brokerage services to all parties.
3210	3210	(3) To keep confidential any information given to the
3211	3211	licensee in confidence, or any information obtained by the
3212	3212	licensee that the licensee knows a reasonable individual would
3213	3213	want to keep confidential, unless disclosure of this
3214	3214	information is required by law, violates a fiduciary duty to a
3215	3215	client, becomes public knowledge, or is authorized by the
3216	3216	party in writing , or the information becomes public knowledge,
3217	3217	or the failure to disclose the information violates a
3218	3218	fiduciary duty to a client .
3219	3219	(4) To account for all property coming into the
3220	3220	possession of the licensee that belongs to any party to the
3221	3221	real estate transaction.
3222	3222	(5) When assisting a party in the negotiation of a real
3223	3223	estate transaction, to present all written offers in a timely
3224	3224	and truthful manner.
3225	3225	(6) To act on behalf of the licensee or his or her
3226	3226	immediate family, or on behalf of any other individual,
3227	3227	organization, or business entity in which the licensee has a
3228	3228	personal interest only with prior timely written disclosure of
3229	3229	1541
3230	3230	1542
3231	3231	1543
3232	3232	1544
3233	3233	1545
3234	3234	1546
3235	3235	1547
3236	3236	1548
3237	3237	1549
3238	3238	1550
3239	3239	1551
3240	3240	1552
3241	3241	1553
3242	3242	1554
3243	3243	1555
3244	3244	1556
3245	3245	1557
3246	3246	1558
3247	3247	1559
3248	3248	1560
3249	3249	1561
3250	3250	1562
3251	3251	1563
3252	3252	1564
3253	3253	1565
3254	3254	1566
3255	3255	1567
3256	3256	1568 HB3 INTRODUCED
3257	3257	Page 57
3258	3258	personal interest only with prior timely written disclosure of
3259	3259	this interest to all parties to the transaction.
3260	3260	(b) A licensee may provide requested information which
3261	3261	affects a transaction to any party who requests the
3262	3262	information, unless disclosure of the information is
3263	3263	prohibited by law or in this article.
3264	3264	(c) When accepting an agreement to list an owner's
3265	3265	property for sale, the broker or his or her licensee shall, at
3266	3266	a minimum, accept delivery of and present to the consumer all
3267	3267	offers, counteroffers, and addenda to assist the consumer in
3268	3268	negotiating offers, counteroffers, and addenda, and to answer
3269	3269	the consumer's questions relating to the transaction."
3270	3270	"§34-27-85
3271	3271	(a) In addition to the duties enumerated in Section
3272	3272	34-27-84, a licensee shall provide all of the following
3273	3273	services to clients:
3274	3274	(1) Loyally represent the best interests of the client
3275	3275	by placing the interests of the client ahead of the interests
3276	3276	of any other party, unless loyalty to a client violates the
3277	3277	duties of the licensee to other parties under Section
3278	3278	34-27-84, or is otherwise prohibited by law.
3279	3279	(2) Disclose to the client all information known by the
3280	3280	licensee that is material to the transaction and not
3281	3281	discoverable by the client through reasonable investigation
3282	3282	and observation, except for confidential information as
3283	3283	provided in subdivision (3) of subsection (a) of Section
3284	3284	34-27-84. A licensee shall have no affirmative duty to
3285	3285	discover the information.
3286	3286	(3) Fulfill any obligation required by the agency
3287	3287	1569
3288	3288	1570
3289	3289	1571
3290	3290	1572
3291	3291	1573
3292	3292	1574
3293	3293	1575
3294	3294	1576
3295	3295	1577
3296	3296	1578
3297	3297	1579
3298	3298	1580
3299	3299	1581
3300	3300	1582
3301	3301	1583
3302	3302	1584
3303	3303	1585
3304	3304	1586
3305	3305	1587
3306	3306	1588
3307	3307	1589
3308	3308	1590
3309	3309	1591
3310	3310	1592
3311	3311	1593
3312	3312	1594
3313	3313	1595
3314	3314	1596 HB3 INTRODUCED
3315	3315	Page 58
3316	3316	(3) Fulfill any obligation required by the agency
3317	3317	agreement, and any lawful instructions of the client that are
3318	3318	within the scope of the agency agreement, that are not
3319	3319	inconsistent with other duties as enumerated in this article.
3320	3320	(b) A brokerlicensee who represents more than one
3321	3321	client in a real estate transaction owes the duties as
3322	3322	specified in subsection (a) to each client, except where the
3323	3323	duties to one client will violate the fiduciary duties of the
3324	3324	licensee to other clients.
3325	3325	(c) A brokerlicensee may provide brokerage services as
3326	3326	a limited consensual dual agent only with the prior written,
3327	3327	informed consent of all clients of the brokerlicensee in the
3328	3328	transaction."
3329	3329	"§34-27-86
3330	3330	(a) A client is not liable for a misrepresentation made
3331	3331	by a brokerlicensee in connection with the brokerlicensee
3332	3332	providing brokerage services unless the client knows or should
3333	3333	have known of the misrepresentation or the brokerlicensee is
3334	3334	repeating a misrepresentation made by the client to the
3335	3335	brokerlicensee.
3336	3336	(b) A licensee shall not be liable for providing false
3337	3337	information to a party in a real estate transaction if the
3338	3338	false information was provided to the licensee by a client of
3339	3339	the licensee or by a customer or by another licensee unless
3340	3340	the licensee knows or should have known that the information
3341	3341	was false."
3342	3342	Section 2. Section 34-27-39 is added to the Code of
3343	3343	Alabama 1975, to read as follow:
3344	3344	34-27-29.
3345	3345	1597
3346	3346	1598
3347	3347	1599
3348	3348	1600
3349	3349	1601
3350	3350	1602
3351	3351	1603
3352	3352	1604
3353	3353	1605
3354	3354	1606
3355	3355	1607
3356	3356	1608
3357	3357	1609
3358	3358	1610
3359	3359	1611
3360	3360	1612
3361	3361	1613
3362	3362	1614
3363	3363	1615
3364	3364	1616
3365	3365	1617
3366	3366	1618
3367	3367	1619
3368	3368	1620
3369	3369	1621
3370	3370	1622
3371	3371	1623
3372	3372	1624 HB3 INTRODUCED
3373	3373	Page 59
3374	3374	34-27-29.
3375	3375	(a) No licensee shall advertise or market as a team,
3376	3376	group, or other affiliation unless actively licensed as a team
3377	3377	by the commission.
3378	3378	(b) The leader of any licensed team shall at a minimum
3379	3379	be a licensed Alabama associate broker.
3380	3380	(c) A broker wishing to license a team must complete
3381	3381	the team license application established by the commission.
3382	3382	The application must be authorized by the leader of the
3383	3383	proposed team and the team leader’s qualifying broker. The
3384	3384	application must include the name and license number of all
3385	3385	licensees that will initially be a member of the team.
3386	3386	(d) The commission may establish a one-year or
3387	3387	multi-year team license period.
3388	3388	(e) The original fee for each team license shall be one
3389	3389	hundred dollars ($100) per year or portion of a year remaining
3390	3390	in the respective license period, and the renewal fee for each
3391	3391	team license shall be one hundred dollars ($100) per year for
3392	3392	each year of the license period. Team licenses must be renewed
3393	3393	by September 30 of the final year of a licensing period, or
3394	3394	the team shall be inactivated and subject to reactivation
3395	3395	requirements. The fee to reactivate a team shall be fifty
3396	3396	dollars ($50).
3397	3397	(f) To dissolve a team, the request must be made as
3398	3398	prescribed by the commission and approved by the team leader
3399	3399	and the team leader’s qualifying broker.
3400	3400	(g) To change the name of a team, the fee shall be
3401	3401	fifty dollars ($50), and the request must be made as
3402	3402	prescribed by the commission and approved by the team leader
3403	3403	1625
3404	3404	1626
3405	3405	1627
3406	3406	1628
3407	3407	1629
3408	3408	1630
3409	3409	1631
3410	3410	1632
3411	3411	1633
3412	3412	1634
3413	3413	1635
3414	3414	1636
3415	3415	1637
3416	3416	1638
3417	3417	1639
3418	3418	1640
3419	3419	1641
3420	3420	1642
3421	3421	1643
3422	3422	1644
3423	3423	1645
3424	3424	1646
3425	3425	1647
3426	3426	1648
3427	3427	1649
3428	3428	1650
3429	3429	1651
3430	3430	1652 HB3 INTRODUCED
3431	3431	Page 60
3432	3432	prescribed by the commission and approved by the team leader
3433	3433	and the team leader’s qualifying broker.
3434	3434	(h) To add or remove a member from a team, the fee
3435	3435	shall be twenty-five dollars ($25) per member who is added or
3436	3436	removed. The request must be made as prescribed by the
3437	3437	commission and approved by the team leader and the team
3438	3438	leader’s qualifying broker.
3439	3439	(i) The team leader, the team leader’s qualifying
3440	3440	broker, and the company’s qualifying broker are all
3441	3441	responsible for supervising team members.
3442	3442	(j) The team leader and the team leader’s qualifying
3443	3443	broker are responsible for notifying the team members if a
3444	3444	team member is removed from a team or the team is dissolved or
3445	3445	inactivated.
3446	3446	(k) No person shall be a member on more than one
3447	3447	licensed team.
3448	3448	(l) The commission shall adopt rules addressing teams
3449	3449	and what words may or may not be used in a team name and how
3450	3450	teams may advertise and market.
3451	3451	Section 3. This act shall become effective on October
3452	3452	1, 2024.
3453	3453	1653
3454	3454	1654
3455	3455	1655
3456	3456	1656
3457	3457	1657
3458	3458	1658
3459	3459	1659
3460	3460	1660
3461	3461	1661
3462	3462	1662
3463	3463	1663
3464	3464	1664
3465	3465	1665
3466	3466	1666
3467	3467	1667
3468	3468	1668
3469	3469	1669
3470	3470	1670
3471	3471	1671
3472	3472	1672