HB402 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Victor Gaston
Republican
Session: Regular Session 2018
Title: Real estate, licenses, definitions, clarify and add requirements for brokerage agreements, continuing education, Secs. 34-27-2, 34-27-3, 34-27-6, 34-27-30, 34-27-32, 34-27-33, 34-27-34, 34-27-35 am'd.
Summary: HB 402 would overhaul Alabama's real estate licensing rules by adding definitions, tightening brokerage and education requirements, requiring licenses for some rental activities, and raising continuing education hours.
What This Bill Does
It updates definitions for real estate terms and clarifies what counts as engaging in real estate and where a real estate office must be located. It tightens rules for brokerage agreements and for schools, administrators, and instructors who offer real estate courses, including bonding, signage, licensing, and new accreditation/fee requirements. It requires a real estate license for certain lease and rental activities, expands the activities that require licensure, and increases continuing education hours (from 15 to 18 hours per two-year renewal) with added instructor CE requirements and updated renewal processes.

Who It Affects
Real estate licensees (brokers, salespersons, and real estate companies) who would face updated definitions, revised licensing and transfer rules, higher continuing education hours, mandatory background checks, and new/altered fees and renewal procedures.
Real estate schools, administrators, and instructors who would encounter bonding and financial requirements, licensing and signage obligations, course approval processes, fees, and ongoing instructor/administrator CE requirements.

Key Provisions
Adds and clarifies definitions (e.g., associate broker, licensee, place of business, property management) and clarifies terms used in real estate law.
Imposes additional requirements on real estate schools, administrators, and instructors, including bonding for proprietary pre/post license schools, signage rules, administrator licensing, course approvals, and related fees; allows disciplinary actions by the commission.
Raises continuing education requirements for license renewals to 18 clock hours per two-year cycle and requires CE for instructors; allows time served in the state legislature to count toward CE; establishes renewal timelines and penalties for late renewals.
Requires a real estate license for certain lease and rental arrangements, including activities related to property management and coordination of maintenance for rental properties.
Updates reciprocal licensing and co-brokerage rules with nonresident or other-state licensees; requires Alabama-specific coursework and a reasonable exam for reciprocal licensees and ongoing CE proof.
Establishes detailed licensing processes (temporary licenses, post-license education, and qualifying broker responsibilities) and rules for transfers between brokers; specifies fees and conditions for changes in qualifying brokers and office locations.
Enhances background checks by requiring state and national criminal history checks with applicant-paid costs; sets various license and renewal fees and administrative procedures for certificates and records.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Real Estate