SB309 Alabama 2018 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

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

SB 309 would overhaul Alabama real estate licensing by adding definitions, tightening requirements for schools and instructors, extending continuing education, and expanding license rules for lease/rental activities and reciprocal licensing.

What This Bill Does

- It adds definitions and clarifies terms used in real estate brokerage and office operations, including place of business and supervision. - It requires a real estate license for certain lease and rental activities and increases continuing education hours for license holders. - It creates a regulated framework for real estate schools, administrators, and instructors, including bonding requirements, fees, signage, approvals, and background checks. - It expands reciprocal licensing with out-of-state licensees and tightens co-brokerage rules with nonresident brokers (limits and filing requirements).

Who It Affects

• Real estate licensees and applicants in Alabama, who would face new definitions, license requirements for lease/rental activities, higher continuing education hours, and additional background checks.
• Real estate schools, administrators, and instructors, which would face new licensing, bonding, reporting, signage, and oversight requirements, plus authority for disciplinary actions and fee changes.

Key Provisions

• Adds/clarifies definitions in 34-27-2, including Associate Broker, Engage, Place of Business, Property Management, and Qualifying Broker.
• Clarifies brokerage agreements and establishes new/expanded requirements for schools, administrators, and instructors offering real estate courses; adds oversight and potential penalties.
• Requires a real estate license for certain lease and rental activities; expands licensure scope for activities like collecting deposits and coordinating maintenance.
• Strengthens background checks by requiring state and national criminal history checks for license applicants, with applicants paying the costs.
• Limits co-brokerage with nonresident principal brokers to three agreements per calendar year; requires filing copies with the commission; after three, the nonresident broker must obtain an Alabama reciprocal license and serve as principal broker.
• Regulates schools: defines types (accredited, proprietary, pre/post-license, continuing education), bonds for proprietary schools, and licensing/renewal fees for schools, administrators, and instructors; requires signage and discipline authority for violations.
• Creates and regulates licensing for instructors and administrators; requires instructor continuing education and sets fees for instructor licenses; allows for inactive statuses with specific conditions.
• Expands reciprocal licensing process for out-of-state licensees (salespersons and brokers) with Alabama-approved coursework, a reasonable exam, and continued CE; sets fee parity with original licenses.
• Introduces temporary licenses and a 30-hour post-license education requirement; temporary licenses last up to one year; requires completion of post-license coursework for conversion to original license.
• Updates continuing education renewal to require 15-18 clock hours (depending on period), with Legislature service counting toward hours; outlines renewal timelines, penalties, and inactive status rules.
• Effective date: becomes law on the first day of the third month after passage.

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