HB 402

Sponsor
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.
Description

Under existing law, real estate salespersons and brokers are licensed and regulated by the Alabama Real Estate Commission

This bill would add definitions, clarify requirements for brokerage agreements and for schools, administrators, and instructors offering real estate courses, and add additional requirements for schools, administrators, and instructors offering real estate courses. This bill would also require a real estate license for certain lease and rental arrangements. This bill would also increase the clock hours requirement for continuing education for real estate license holders

Relating to real estate; to amend Sections 34-27-2, 34-27-3, 34-27-6, 34-27-30, 34-27-32, 34-27-33, 34-27-34, and 34-27-35, Code of Alabama 1975, to add definitions, clarify requirements for brokerage agreements and for schools, administrators, and instructors offering real estate courses; to add additional requirements for schools, administrators, and instructors offering real estate courses; to require a real estate license for certain lease and rental arrangements; and to increase the clock hours requirement for continuing education for real estate license holders.

Subjects
Real Estate
View Original PDF: HB 402 - Introduced - PDF

Under existing law, real estate salespersons and brokers are licensed and regulated by the Alabama Real Estate Commission

This bill would add definitions, clarify requirements for brokerage agreements and for schools, administrators, and instructors offering real estate courses, and add additional requirements for schools, administrators, and instructors offering real estate courses. This bill would also require a real estate license for certain lease and rental arrangements. This bill would also increase the clock hours requirement for continuing education for real estate license holders

Relating to real estate; to amend Sections 34-27-2, 34-27-3, 34-27-6, 34-27-30, 34-27-32, 34-27-33, 34-27-34, and 34-27-35, Code of Alabama 1975, to add definitions, clarify requirements for brokerage agreements and for schools, administrators, and instructors offering real estate courses; to add additional requirements for schools, administrators, and instructors offering real estate courses; to require a real estate license for certain lease and rental arrangements; and to increase the clock hours requirement for continuing education for real estate license holders.

Section 1

Sections 34-27-2, 34-27-3, 34-27-6, 34-27-30, 34-27-32, 34-27-33, 34-27-34, and 34-27-35, Code of Alabama 1975, are amended to read as follows:

§34-27-2.

(a) For purposes of Articles 1 and 2 of this chapter, the following terms shall have the respective meanings ascribed by this section:

(1) ASSOCIATE BROKER. Any broker other than a qualifying broker.

(2) BROKER. Any person licensed as a real estate broker under Articles 1 and 2 of this chapter.

(3) COMMISSION. The Alabama Real Estate Commission, except where the context requires that it means the fee paid to a broker or salesperson.

(4) COMMISSIONER. A member of the commission.

(5) COMPANY. Any sole proprietorship, corporation, partnership, branch office, or lawfully constituted business organization as the Legislature may provide for from time to time, which is licensed as a company under Articles 1 and 2 of this chapter.

(6) ENGAGE. Contractual relationships between a qualifying broker and an associate broker or salesperson licensed under him or her whether the relationship is employer-employee, independent contractor, or otherwise.

(7) INACTIVE LICENSE. A license which is being held by the commission office by law, order of the commission, at the request of the licensee, or which is renewable but is not currently valid because of failure to renew.

(8) LICENSEE. Any broker, salesperson, or company.

(9) LICENSE PERIOD. That period of time beginning on October 1 of a year designated by the commission to be the first year of a license period and ending on midnight September 30 of the year designated by the commission as the final year of that license period.

(10) PERSON. A natural person.

(11) PLACE OF BUSINESS.

a. A licensed broker living in a rural area of this state who operates from his or her home, provided that he or she sets up and maintains an office for the conduct of the real estate business, which shall not be used for living purposes or occupancy other than the conduct of the real estate business. The office shall be used by the broker only and not as a place of business from which any additional licensee operates under his or her license. The office shall have a separate business telephone, separate entrance, and be properly identified as a real estate office.

b. All licensees located within the city limits or police jurisdiction of a municipality shall operate from a separate office located in the city limits or police jurisdiction. The office shall have a business telephone, meet all other regulations of the Real Estate Commission, and be properly identified as a real estate office. Hardship cases may be subject to waiver of this regulation upon application and approval by the commission.

c. All business records and files shall be kept at the place of business as required by law or Real Estate Commission rules.

(12) PROPERTY MANAGEMENT. The overall management of real property for others for a fee, compensation, or other valuable consideration, that includes those activities listed in Section 34-27-30 that require a license.

(12)(13) QUALIFYING BROKER. A broker under whom a sole proprietorship, corporation, partnership, branch office, or lawfully constituted business organization as the Legislature may from time to time provide is licensed, or a broker licensed as a company to do business as a sole proprietorship who is responsible for supervising the acts of the company or proprietorship and all real estate licensees licensed therewith.

(13)(14) RECOVERY FUND. The Alabama Real Estate Recovery Fund.

(14)(15) SALESPERSON. Any person licensed as a real estate salesperson under Articles 1 and 2 of this chapter.

(b) The licensing requirements of Articles 1 and of this chapter shall not apply to any of the following persons and transactions:

(1) Any owner in the managing of, or in consummating a real estate transaction involving, his or her own real estate or the real estate of his or her spouse or child or parent.

(2) An attorney-at-law performing his or her duties as an attorney-at-law.

(3) Persons acting without compensation and in good faith under a duly executed power of attorney authorizing the consummation of a real estate transaction.

(4) Persons or a state or federally chartered financial institution acting as a receiver, trustee, administrator, executor, or guardian; or acting under a court order or under authority of a trust instrument or will.

(5) Public officers performing their official duties.

(6) Persons performing general clerical or administrative duties for a broker so long as the person does not physically show listed property.

(7) Persons acting as the manager for an apartment building or complex. However, this exception shall not apply to a person acting as an on-site manager of a condominium building or complex.

(8) Persons licensed as time-share sellers under Article 3 of this chapter performing an act consistent with that article.

(9) Transactions involving the sale, lease, or transfer of cemetery lots.

§34-27-3.

(a) A licensed principal broker of another state may act as co-broker, whether in sales or lease transactions, with a licensed qualifying broker of this state by executing a written agreement specifying each parcel of property covered by the agreement if the state in which the nonresident broker is licensed offers the same privileges to licensees of this state. Co-brokerage agreements are limited to three per calendar year per licensed principal broker in another state. If the broker desires to engage in the sale or lease of property in this state after engaging in three co-brokerage agreements, that broker shall obtain an Alabama reciprocal broker's license and be the principal broker in the real estate company where he or she is licensed.

(b) Whenever an Alabama qualifying broker enters into a co-brokerage agreement with a nonresident principal broker to perform in Alabama any of the acts described in Section 34-27-30, the Alabama qualifying broker shall file within 10 days with the commission a copy of each such written agreement, within 10 days. By signing the agreement, the nonresident principal broker agrees to abide by Alabama law, and the rules and regulations of the commission; and further agrees that civil actions may be commenced against him or her in any court of competent jurisdiction in any county of this state in which a claim may arise.

§34-27-6.

(a) For purposes of this section and rules adopted pursuant thereto, the following terms shall have the following meanings:

(1) ACCREDITED SCHOOL. Any nonprofit college or university meeting the standards of an accrediting agency recognized by the United States Department of Education and offering any commission approved course.

(1)(2) ADMINISTRATOR. A person designated by a principal school or branch school and approved by the commission to be the person responsible to the commission for all acts governed by this chapter and applicable rules which govern the operation of schools.

(2)(3) APPROVED COURSE. Any course of instruction approved by the commission that satisfies commission requirements for prelicense education, postlicense education, or continuing education.

(4) BRANCH SCHOOL. Any licensed school under the ownership of a principal school which offers commission approved courses at a permanent location.

(3)(5) APPROVED CONTINUING EDUCATION ONLY SCHOOL. Any proprietary educational institution or organization, other than accredited schools, offering only commission approved continuing education courses and any accredited college or university that offers any commission approved course. The term includes for-profit colleges.

(5)(6) INSTRUCTIONAL SITE. Any physical place where commission approved instruction is conducted apart from the principal school or branch school.

(6)(7) INSTRUCTOR. A person approved licensed by the commission to teach approved courses in the classroom or by distance education.

(7)(8) LICENSED PRE/POST LICENSE SCHOOL. Any proprietary unaccredited school that offers commission approved prelicense courses or postlicense post license courses, or both, including continuing education courses, only after being bonded and licensed and bonded by the commission. The term includes for-profit colleges.

(8)(9) PRINCIPAL SCHOOL. Any institution or organization which is the primary school and not a branch school that is approved licensed by the commission.

(9) PROPRIETARY SCHOOL. Any school that is not an accredited college or university and which offers commission approved prelicense courses or postlicense courses, or both, only after being licensed and bonded by the commission. Each branch school shall be licensed separately.

(b) The commission shall approve and regulate schools that offer commission approved prelicense, postlicense, and continuing education courses. The commission shall be the board, commission, or agency with have the sole and exclusive authority to license and regulate proprietary schools and their branches for the limited purpose of their offerings of commission that offer commission approved real estate prelicense courses or postlicense, post license, and continuing education courses, or both.

(c) The commission shall require proprietary pre/post license principal schools to furnish a surety bond payable to the commission in the amount of twenty thousand dollars ($20,000) with a surety company authorized to do business in Alabama, which and the bond shall provide that the obligor therein shall pay up to twenty thousand dollars ($20,000) in the aggregate sum of all judgments which shall be recovered against the school for damages arising from the school's collection of tuition or fees, or both, from students, but failing to provide the complete instruction for which such tuition or fees were collected. The bond shall remain in effect as long as the school is licensed. In the event the bond is revoked or cancelled by the surety company, the school shall have 10 days to obtain a new bond and file it with the commission. Failure to maintain a bond shall result in the immediate suspension of the licenses of the principal school and all of its branches. The bond shall be provided by the school and shall also cover any branch schools named in the bond or any endorsement or amendment thereto.

(d) The commission shall charge a license fee for each licensed principal pre/post license school and shall charge a fee for each branch school in the amount of two hundred fifty dollars ($250) per year for each year or portion of a year remaining in the respective license period. The renewal fee for each pre/post license principal and branch school license shall be one hundred twenty-five dollars ($125) for each year of the license period. The commission shall charge a license fee for each continuing education only school in the amount of fifty dollars ($50) per year for each year or portion of a year remaining in the respective license period. The renewal fee for each continuing education only school shall be twenty-five dollars ($25) for each year of the license period.

(e) The commission shall require all schools to name and have approved by the commission a school an administrator, licensed by the commission, who shall be responsible to the commission for all actions of his or her respective school. Administrators of pre/post license and continuing education only schools shall pay a license fee in the amount of fifty dollars ($50) per year for each year or portion of a year remaining in the respective license period. The renewal fee for each administrator shall be twenty-five dollars ($25) for each year of the license period.

(f) Principal schools shall be clearly identified by signage as appropriate for the location. The signage shall set out the name of the principal school. Branch schools shall be clearly identified by signage as appropriate for the location. The signage shall set out the name of the branch school and the name of the principal school.

(g) The commission shall have the authority to reprimand, fine, suspend for a period up to two years, or revoke the license or approval of any school, administrator, or instructor for any violation of this section or any rule of the commission. The fine shall be not less than one hundred dollars ($100) nor more than two thousand five hundred dollars ($2,500) per count.

(h) The commission shall approve, sponsor, contract for or conduct, or assist in sponsoring or conducting real estate courses for licensees, may charge fees, and may incur and pay the necessary expenses in connection therewith.

(i) The commission shall approve license and regulate instructors who teach the commission approved prelicense, postlicense post license, and continuing education courses. The commission shall establish and collect fees as determined necessary, not to exceed fifty dollars ($50) per instructor annually, to approved license instructors who teach commission approved courses. The commission shall impose a continuing education requirement for all active pre/post license instructors.

(j) An instructor, administrator, or school may request that the commission issue or transfer a license to inactive status. Inactive instructors may not teach and inactive schools shall not offer commission approved courses. Inactive administrators may not perform any duties as an administrator including, but not limited to, registering students, advertising for the school, reporting course schedules to the commission, or entering student credit for courses completed. The license of an inactive instructor, administrator, and school shall be renewed in the same manner as the license for an active instructor, administrator, and school. An inactive pre/post license instructor whose license was renewed on inactive status may activate his or her license for the first time in a license period by completing the instructor continuing education requirement that remains incomplete from the previous license period and paying a license activation fee. Once active, an instructor shall be responsible for completing the current instructor continuing education requirement in order to renew the license on active status for the next license period. A change of status from inactive to active requires an activation fee of twenty-five dollars ($25) for each instructor, administrator, and school.

(k) Active pre/post license instructors with an inactive broker's license shall remain current with the continuing education requirement mandated for active brokers as well as the continuing education requirement for their instructor license. At the time of broker license renewal, the instructor license shall be placed on inactive status if the continuing education requirement for the broker's license is not satisfied.

(l) All education licenses and approvals shall expire at midnight on September 30 of the final year of each license period. Each instructor for renewal of an active pre/post license instructor license shall, on or before September 30 of the final year of each license period, satisfy the instructor continuing education requirement, in addition to any other requirements for renewal. The instructor continuing education requirement shall apply to each two-year education renewal. Hours in excess of the requirement shall not be cumulated or credited for the purpose of subsequent renewals. An inactive pre/post license instructor license shall be renewed in the same manner as an active pre/post license instructor license with the exception that instructor continuing education is not required as long as the instructor license remains inactive.

(m) Failure of instructors, administrators, and schools to meet all requirements for renewal by the September eadline shall result in an expired license which is renewable until September 30 of the following year by renewing the license and paying the license fee plus a late fee of fifty dollars ($50). Courses are not subject to the late fee but are subject to renewal.

(n) An expired license or approval may be renewed late during the 12-month period following the September 30 renewal deadline. No licensed activity may take place while a license is expired. Beyond the 12-month late renewal period, expired licenses and approvals shall lapse and shall be subject to all requirements applicable to an original license or approval. The commission, upon determination of hardship, may allow later renewal upon payment of all fees.

(j)(o) The commission shall approve courses and establish and collect fees as determined necessary, not to exceed one hundred dollars ($100) per application, to review each course.

(k)(p) The commission shall establish one-year or multi-year approval license periods for schools, instructors, administrators, and courses. Approval and license License periods shall run from October 1 of the first year of the approval period through September 30 of the final year of the approval license period.

(l)(q) The commission shall promulgate rules and regulations as necessary to accomplish the purpose of this section in accordance with the Administrative Procedure Act.

§34-27-30.

It shall be unlawful for any person, sole proprietorship, partnership, corporation, branch office, or lawfully constituted business organization, as the Legislature may from time to time provide, for a fee, commission, or other valuable consideration, or with the intention or expectation of receiving or collecting a fee, commission, or other valuable consideration from another, to do any of the following unless licensed under Articles 1 and 2 of this chapter:

(1) Sell, exchange, purchase, rent, or lease real estate situated within the State of Alabama.

(2) Offer to sell, exchange, purchase, rent, or lease real estate situated within the State of Alabama.

(3) Negotiate or attempt to negotiate the listing, sale, exchange, purchase, rental, or leasing of real estate situated within the State of Alabama.

(4) List or offer or attempt or agree to list real estate for sale, rental, lease, exchange, or trade situated within the State of Alabama.

(5) Auction, offer, or attempt or agree to auction, real estate situated within the State of Alabama.

(6) Buy or sell or offer to buy or sell, or otherwise deal in options on real estate situated within the State of Alabama.

(7) Aid, attempt, or offer to aid in locating or obtaining for purchase, rent, or lease any real estate situated within the State of Alabama.

(8) Procure or assist in procuring of prospects for the purpose of effecting the sale, exchange, lease, or rental of real estate situated within the State of Alabama.

(9) Procure or assist in the procuring of properties for the purpose of effecting the sale, exchange, lease, or rental of real estate situated within the State of Alabama.

(10) Present himself or herself, or be presented, as being able to perform an act for which a license is required.

(11) Enter into an agreement or contract for the collection and escrow of security deposits, and enter into an agreement or contract for the collection and escrow of rental payments for properties situated within the this state.

(12) Coordinate physical maintenance and repairs for real property under rental or lease management agreement with an Alabama real estate licensee, and situated within this state, when the coordination of physical maintenance or repairs does not require licensure pursuant to other state regulatory agencies or boards, or when the real estate licensee holds the license or licenses required by other state regulatory agencies or boards to coordinate or perform the physical maintenance or repairs.

§34-27-32.

(a) A license for a broker or a salesperson shall be registered to a specific real estate office and shall be issued only to, and held only by, a person who meets all of the following requirements:

(1) Is trustworthy and competent to transact the business of a broker or salesperson in a manner that safeguards the interest of the public.

(2) Is a person whose application for real estate licensure has not been rejected in any state on any grounds other than failure to pass a written examination within the two years prior to the application for real estate licensure with Alabama. If the applicant's rejection for real estate licensure in any state is more than two years from the date of application for licensure with Alabama, then the applicant may not be issued an Alabama real estate license without the approval of the commissioners.

(3) Is a person whose real estate license has not been revoked in any state within the two years prior to application for real estate licensure with Alabama. If the applicant's real estate licensure revocation in any state, including Alabama, is more than two years from the date of application for licensure with Alabama then the applicant may not be issued an Alabama real estate license without the approval of the commissioners.

(4) Is at least 19 years old.

(5) Is a citizen of the United States or, if not a citizen of the United States, a person who is legally present in the United States with appropriate documentation from the federal government, or is an alien with permanent resident status.

(6) Is a person who, if a nonresident, agrees to sign an affidavit stating the following and in the following form:

"I, as a nonresident applicant for a real estate license and as a licensee, agree that the Alabama Real Estate Commission shall have jurisdiction over me in any and all of my real estate related activities the same as if I were an Alabama resident licensee. I agree to be subject to investigations and disciplinary actions the same as Alabama resident licensees. Further, I agree that civil actions may be commenced against me in any court of competent jurisdiction in any county of the State of Alabama.

"I hereby appoint the Executive Director or the Assistant Executive Director of the Alabama Real Estate Commission as my agent upon whom all disciplinary, judicial, or other process or legal notices may be served. I agree that any service upon my agent shall be the same as service upon me and that certified copies of this appointment shall be deemed sufficient evidence and shall be admitted into evidence with the same force and effect as the original might be admitted. I agree that any lawful process against me which is served upon my agent shall be of the same legal force and validity as if personally served upon me and that this appointment shall continue in effect for as long as I have any liability remaining in the State of Alabama. I understand that my agent shall, within a reasonable time after service upon him or her, mail a copy of the service by certified mail, return receipt requested, to me at my last known business address.

"I agree that I am bound by all the provisions of the Alabama Real Estate License Law the same as if I were a resident of the State of Alabama. ___________________ Legal Signature of Applicant"

The commission may reject the application of any person who has been convicted of or pleaded guilty or nolo contendere to a felony or a crime involving moral turpitude.

(b)(1) A person who holds a current real estate salesperson license in another state, including persons who move to and become residents of Alabama, shall apply for a reciprocal salesperson license on a form prescribed by the commission. A person who holds a current broker license in another state, including persons who move to and become residents of Alabama, shall apply for a reciprocal broker license on a form prescribed by the commission. The applicant shall submit proof that he or she has a current real estate license in another state as evidenced by a certificate of licensure, together with any other information required by the commission. The applicant shall also show proof that he or she has completed at least six hours of course work in Alabama real estate which is approved by the commission. Applicants for a reciprocal license shall not be subject to the complete examination or temporary license requirements of Section 34-27-33, but shall pass a reasonable written examination prepared by the commission on the subject of Alabama real estate. Passing candidates shall submit a complete application for licensure and fees within 90 days after passing the examination or the exam score shall be null and void. A person who holds a reciprocal license shall show proof of completion of continuing education either by meeting the requirements of Section 34-27-35 or by showing proof that his or her other state license remains active in that state. The fees for issuance and renewal of a reciprocal license shall be the same as those for original licenses pursuant to Section 34-27-35. The recovery fund fee for issuance of a reciprocal license shall be the same as for an original license pursuant to Section 34-27-31.

(2) A person who holds a current Alabama license who moves to and becomes a resident of the state shall within ays submit to the commission notice of change of address and all other license status changes.

(c) A person who does not hold a current real estate broker license in another state desiring to be a real estate broker in this state apply for a broker's license on a form prescribed by the commission which shall specify shall submit a complete application for licensure and fees within 90 days after passing the examination or the exam score shall be null and void. The applicant shall specify whether the license shall be issued to inactive status to be held by the commission or to active status with the real estate office to which he or she is shall be registered. Along with the application, he or she shall submit all of the following:

(1) Proof that he or she has had an active real estate salesperson's license in any state for at least 24 months of the 36-month period immediately preceding the date of application.

(2) Proof that he or she is a high school graduate or the equivalent.

(3) Proof that he or she has completed a course in real estate approved by the commission, which shall be a minimum of 60 clock hours.

(4) Any other information requested by the commission.

(d) A person who does not hold a current real estate salesperson license in another state desiring to be a real estate salesperson in this state shall apply for a salesperson's license with the commission on a form prescribed by the commission which shall specify submit a complete application for licensure and fees within 90 days after passing the examination or the exam score shall be null and void. The applicant shall specify whether the license shall be issued to inactive status to be held by the commission or to active status with the real estate office to which he or she is will be registered. Along with the application he or she shall furnish all of the following:

(1) Proof that he or she is a high school graduate or the equivalent.

(2) Proof that he or she has successfully completed a course in real estate approved by the commission, which shall be a minimum of 60 clock hours.

(3) Any other information required by the commission.

(e) An application for a company license or branch office license shall be made by a qualifying broker on a form prescribed by the commission. The qualifying broker shall be an officer, partner, or employee of the company.

(f) An applicant for a company or broker license shall maintain a place of business.

(g) If the applicant for a company or broker license maintains more than one place of business in the state, he or she shall have a company or branch office license for each separate location or branch office. Every application shall state the location of the company or branch office and the name of its qualifying broker. Each company or branch office shall be under the direction and supervision of a qualifying broker licensed at that address. No person may serve as qualifying broker at more than one location. The qualifying broker for the branch office and the qualifying broker for the company shall share equal responsibility for the real estate activities of all licensees assigned to the branch office or company.

(h) No person shall be a qualifying broker for more than one company or for a company and on his or her own behalf unless:

(1) All companies for which he or she is and proposes to be the qualifying broker consent in writing.

(2) He or she files a copy of the written consent with the commission.

(3) He or she will be doing business from the same location.

A person licensed under a qualifying broker may be engaged by one or more companies with the same qualifying broker.

(i) A company license shall become invalid on the death or disability of a qualifying broker. Within 30 days after the death or disability, the corporation, or the remaining partners or the successor partnership, if any, may designate another of its officers, members, or salespersons to apply for a license as temporary qualifying broker. The person designated as temporary qualifying broker shall either be a broker or have been a salesperson for at least one year prior to filing the application. If the application is granted, the company may operate under that temporary qualifying broker for no more than six months after the death or disability of its former qualifying broker temporary qualifying broker's license has been issued. Unless the company designates a fully licensed broker as the qualifying broker within the six months, the company license and all licensees licensed under the temporary qualifying broker shall be classified placed inactive by the commission.

(j) The commission shall require both state and national criminal history background checks to issue a license. Applicants shall submit required information and fingerprints to the commission, Federal Bureau of Investigation, Alabama State Law Enforcement Agency, or its successor, or to a fingerprint processing service that may be selected by the commission for this purpose. Criminal history record information shall be provided to the commission from both the State of Alabama and the Federal Bureau of Investigation. The commission can use the provided criminal history for the determination of the qualifications and fitness of the applicant to hold a real estate license. The applicant shall assume the cost of the criminal history check. The criminal history must be current to the issuance of the license.

(k) The commission may charge a fee of ten dollars ($10) for furnishing any person a copy of a license, certificate, or other official record of the commissioner.

§34-27-33.

(a)(1) In addition to other requirements of this chapter, every applicant for a broker's or salesperson's license shall submit to a reasonable written examination. The commission shall conduct examinations at places and times it prescribes. The commission may contract with an independent testing agency to prepare, grade, or conduct the examination.

(2) Effective October 1, 2001, and thereafter, the The fee for each examination and the provisions for payment and forfeiture shall be as specified in the contract with the independent testing agency.

(b) Within 90 days after passing the examination, the applicant shall secure a qualifying broker and submit the appropriate fees, a complete application on a form prescribed by the commission, and meet all requirements of this chapter and the board.The commission shall issue an active license to the real estate office to which he or she shall be registered or classify issue the license as to inactive status to be held by the commission. In order to obtain an active license, the applicant's qualifying broker shall sign and submit to the commission a sworn statement that the applicant is in his or her opinion honest, trustworthy, and of good reputation and that the broker accepts responsibility for the actions of the salesperson as set out in Section 34-27-31 34-27-34. The applicant's qualifying broker shall be licensed in hold an active Alabama license.

(c)(1) On passing the examination and complying with all other conditions for licensure, a temporary license certificate shall be issued to the applicant. The applicant is not licensed until he or she or his or her qualifying broker actually receives the temporary license certificate. A temporary license shall be valid only for a period of one year following the first day of the month after its issuance.

(2) The holder of a temporary license shall not be issued an original license until he or she has satisfactorily completed a 30-hour post-license post license course prescribed by the commission. The holder of a temporary license must shall complete the course within six months of issuance of his or her temporary license, submit an application for an original license on a form prescribed by the commission, and have his or her original license issued to either active or inactive status., otherwise his or her temporary license certificate shall automatically be placed on inactive status by the commission. During the remaining six months his or her temporary license is valid, the holder of a temporary license may complete the course and have his or her original license issued. If the holder of a temporary license does not complete the course and have his or her original license issued within one year following the first day of the month after its issuance, the temporary license shall automatically expire and lapse. A temporary license is not subject to renewal procedures in this chapter and may not be renewed.

(3) In order to have a temporary license issued to active status, the applicant shall pay the Recovery Fund fee specified in this chapter. The holder of a temporary license shall, upon satisfactory completion of the course, pay the original license fee specified in this chapter to have his or her original license issued. An applicant for an original license who has paid the Recovery Fund fee specified in this chapter shall not be required to pay another Recovery Fund fee in order to have his or her original license issued.

(4) The holder of an original license who has satisfactorily completed the postlicense post license course and whose original license has been issued, shall not be subject to the continuing education requirements in this chapter for the first renewal of his or her original license.

(d) This section shall become effective for licenses issued beginning October 1, 1993.

§34-27-34.

(a)(1) A broker may serve as qualifying broker for a salesperson or associate broker only if licensed in Alabama, his or her principal business is that of a real estate broker, and he or she shall be in a position to actually supervise the real estate activities of the associate broker or salesperson on a full-time basis.

(2) A salesperson or associate broker shall not perform acts for which a license is required unless licensed under a qualifying broker. A qualifying broker shall be held responsible to the commission and to the public for all acts governed by this chapter of each salesperson and associate broker licensed under him or her and of each company for which he or she is the qualifying broker. It shall be the duty of the qualifying broker to see that all transactions of every licensee engaged by him or her or any company for which he or she is the qualifying broker comply with this chapter. Additionally, the qualifying broker shall be responsible to an injured party for the damage caused by any violation of this chapter by any licensee engaged by the qualifying broker. This subsection does not relieve a licensee from liability that he or she would otherwise have.

(3) The qualifying brokers' supervision responsibilities, as prescribed herein, over the real estate activities of associate brokers and salespersons licensed under him or her are not intended to and should not be construed as creating an employer-employee relationship contrary to any expressed intent of the qualifying broker and licensee to the contrary.

(b) Any salesperson or associate broker who desires to change his or her qualifying broker shall give notice in writing to the commission, and shall send a copy of the notice to his or her qualifying broker. The new qualifying broker shall file with the commission a request for the transfer and a statement assuming liability for the licensee. On payment of a fee of twenty-five dollars ($25), a new license certificate shall be issued to the salesperson or associate broker for the unexpired term of the original license. A fee of twenty-five dollars ($25) shall also be charged for any of the following license changes:

(1) Change of qualifying broker by a company or sole proprietorship. The fee is paid for the license or licenses on which the current and new qualifying brokers' names appear. In cases where a company has a branch office or offices and the main office qualifying broker is changed, the fee is paid for each branch office license and for the license of each branch qualifying broker.

(2) Change of personal name of a qualifying broker. The fee is paid for the license or licenses on which the current qualifying broker's name appears. This change shall be completed within 30 days of the name change.

(3) Change of personal name of a salesperson or associate broker. The fee is paid for the license on which the name appears. This change shall be completed within 30 days of the name change.

(4) Change of business location. The fee is paid for the license or licenses on which the address appears.

(5) Change of business name. The fee is paid for the license or licenses on which the name appears.

(6) Change of status from inactive to active. The fee is paid for each license being changed from inactive to active status. No fee is charged for the change from active to inactive status.

(c) A person who wishes to terminate his or her status as qualifying broker for a licensee may do so by notifying the licensee and placing the license on inactive status with the commission.the commission in writing and sending the licensee's license certificate to the commission or verifying in writing to the commission that the certificate has been lost or destroyed.

(d) A person who wishes to terminate his or her status as a qualifying broker for a company may do so by submitting written notice to the company or qualifying broker of the parent company and the commission.

(e) A salesperson or associate broker shall not perform any act for which a license is required after his or her association with his or her qualifying broker has been terminated, or if he or she changes qualifying brokers, until a new active license has been issued by the commission.

§34-27-35.

(a) The commission shall prescribe the form and content of license certificates issued. Each qualifying broker's license certificate shall show the name and business address of the broker. The license certificate of each active salesperson or associate broker shall show his or her name and address. The license certificate of each active salesperson or associate broker shall be delivered or mailed to his or her qualifying broker. Each license certificate shall be kept by the qualifying broker and shall be publicly displayed at the address which appears on the license certificate.

(b) The commission may establish a one-year or multi-year license period.

(c)(1) The fee for a temporary license shall be one hundred fifty dollars ($150). The original fee for a broker's license shall be one hundred fifty dollars ($150) and, beginning with the license period effective October 1, 2002, the renewal fee for a broker's license shall be seventy-five dollars ($75) per year for each year of the license period. The original fee for each salesperson's license shall be sixty-five dollars ($65) per year for each year or portion of a year remaining in the respective license period, and the renewal fee for each salesperson's license shall be sixty-five dollars ($65) per year for each year of the license period. The original fee for each company license shall be sixty-five dollars ($65) per year for each year or portion of a year remaining in the respective license period, and the renewal fee for each license shall be sixty-five dollars ($65) per year for each year of the license period.

(2) Beginning with the license period effective October 1, 2004, the renewal fee for a broker's license shall be ninety-five dollars ($95) per year for each year of the license period. The original fee for each salesperson's license shall be eighty-five dollars ($85) per year for each year or portion of a year remaining in the respective license period, and the renewal fee for each salesperson's license shall be eighty-five dollars ($85) per year for each year of the license period. The original fee for each company license shall be eighty-five dollars ($85) per year for each year or portion of a year remaining in the respective license period, and the renewal fee for each license shall be eighty-five dollars ($85) per year for each year of the license period.

(d) (1) The renewal research and education fee shall be two dollars and fifty cents ($2.50) per year for each year of the license period and shall be paid at the time of license renewal by all brokers and salespersons in addition to the license renewal fees set out in this section. Collection of this fee shall apply to all broker and salesperson renewals, except that brokers who hold more than one broker's license shall pay the fee for only one license at each renewal.

(2) Beginning June 1, 2014, this fee shall be seven dollars and fifty cents ($7.50), and the proceeds shall be distributed to the Alabama Center for Real Estate. (e) The original research and education fee shall be thirty dollars ($30) and shall be paid at the time of all applications received on and after October 15, 1995, for issuance of an original broker's license, and shall be paid at the time of all applications received on and after October 15, 1995, for issuance of a temporary salesperson's license. The original research and education fee shall also be paid by reciprocal salespersons. This is in addition to the original license fees set out in this section. This thirty dollar ($30) original research and education fee is a one-time fee which no person shall be required to pay more than once.

(f) The license of a salesperson who is subsequently issued a broker's license automatically terminates upon the issuance of his or her broker's license certificate. The salesperson's license certificate shall be returned to the commission in order for a broker's license to be issued. No refund shall be made of any fee or Recovery Fund deposit pertaining to the salesperson's, broker's, or company's license.

(g) The commission shall prescribe a license renewal form, which shall accompany renewal fees which shall be filed on or before August 31 of the final year of each license period in order for the respective license to be renewed on a timely basis for the following license period. If any of the foregoing are filed during the period from September 1 through September 30 of the final year of a license period, the one hundred fifty dollar ($150) penalty late fee set out below shall be paid in addition to the renewal fees. Failure to meet this September 30 deadline shall result in the license being placed on inactive status on the following October 1, and the license shall be subject to all reactivation requirements. Reactivations shall be processed in the order received as evidenced by postmark or delivery date. Certified or registered mail may be used for reactivation in these cases. Licensees filing during the period from September f the final year of a license period through September 30 of the initial year of a license period shall pay the required license fee, plus a penalty late fee of one hundred fifty dollars ($150).

(h) The renewal form shall be mailed by the commission to the licensee's place of business, if an active licensee, or to his or her residence, if an inactive licensee, prior to August 1 of the final year of each license period. Each licensee shall notify the commission in writing of any change in his or her business or residence address within 30 days of the change.

(i) Every salesperson, broker, or company license shall expire at midnight on September 30 of the final year of each license period except for temporary salespersons whose licenses expire one year following the last day of the month after issuance and temporary brokers whose licenses expire six months after issuance. An expired license may be renewed during the 12-month period following the license period for which the license was current. A licensee who fails to renew before the end of the 12-month period following the license period for which the license was issued has a lapsed license, and shall be subject to all requirements applicable to persons who have never been licensed, however, the commission may upon determination of hardship, allow later renewal upon payment of all fees and penalties. An inactive license must shall be renewed in the same manner as an active license.

(j)(1) Each applicant for renewal of an active salesperson or broker license issued by the commission shall, on or before September 30 of the final year of each license period, submit proof of completion of complete not less than clock hours of approved continuing education course work to the commission, in addition to any other requirements for renewal. Failure to meet this deadline shall result in the license being placed on inactive status on the following October 1, and the license shall be subject to all reactivation requirements. Reactivations shall be processed in the order received as evidenced by postmark or delivery date. Certified or registered mail may be used for reactivation in this case. Proof of attendance at the course work, whether or not the applicant attained a passing grade in the course, shall be sufficient to satisfy continuing education requirements for renewal. The 15 18 clock hours' course work requirement shall apply to each two-year license renewal, and hours in excess of 15 18 shall not be cumulated or credited for the purpose of subsequent license renewals. The commission shall develop standards for approval of courses, and shall require certification of the course work of the applicant.

Time served as a member of the state Legislature during each license renewal period shall be deemed the equivalent of the 15 hours 18 hours' course work and shall satisfy the requirements of this subsection.

(2) This section shall apply to renewals of licenses which expire after September 30, 1986. An applicant for first renewal who has been licensed for not more than one year shall not be required to comply with this section for the first renewal of the applicant's license. Any licensee reaching the age of 65 on or before September 30, 2000, and having been licensed 10 years prior to that date shall be exempt from this section.

(3) Continuing education shall not result in a passing or failing grade.

(k) A licensee may request that the commission issue his or her license to inactive status. Inactive licenses shall be held at the commission office until activated. No act for which a license is required shall be performed under an inactive license."

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

No articles found.
Action Date Chamber Action
March 1, 2018HBoards, Agencies and Commissions first Substitute Offered
March 1, 2018HPending third reading on day 17 Favorable from Boards, Agencies and Commissions with 1 substitute
March 1, 2018HRead for the second time and placed on the calendar with 1 substitute and
February 13, 2018HRead for the first time and referred to the House of Representatives committee on Boards, Agencies and Commissions
2018-03-01
Chamber: House
Result: Passed
2018-02-01
Chamber: Senate
Result: Passed
2018-02-01
Chamber: Senate
Result: Passed