HB553 Alabama 2021 Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Session

Regular Session 2021

Title

Real Estate Commission, method for appointing members revised, live virtual online education courses provided, definitions, exemptions from regulation further provided, Secs. 34-27-2, 34-27-6, 34-27-7, 34-27-8, 34-27-32, 34-27-35, 34-27-36 am'd.

Summary

HB553 would overhaul Alabama's Real Estate Commission by updating definitions and exemptions, allowing live virtual education, reforming appointment procedures, and strengthening licensing rules and transparency to protect consumers.

What This Bill Does

It authorizes live virtual online education for real estate prelicense, postlicense, and continuing education, with course content and certification aligned with in-person formats. It revises how the Real Estate Commission is appointed, including rules about consumer representation and diversity, and restricts political activity by the commission. It increases transparency by requiring public posting of financial institutions holding commission funds and tightens licensure rules, background checks, and disciplinary procedures, including making a license inactive for faulty payments. It also repeals certain existing provisions and makes technical updates to the code.

Who It Affects

• Real estate licensees and license-issuing entities (brokers, salespersons, and real estate companies) who face new education options, revised licensure requirements, and changes to commission oversight and inactivity rules.
• Consumers and the general public who gain from stronger protections, greater transparency about commission funds, and enhanced disciplinary and ethical standards in real estate practices.

Key Provisions

• Authorizes live virtual online education for prelicense, postlicense, and continuing education, with content standards and equal certification to in-person courses.
• Updates definitions and exemptions related to licensure, clarifying terms such as broker, associate broker, licensee, and property management.
• Revises the method of appointing Real Estate Commission members, including a consumer member and requirements aimed at diversity and accountability; repeals some old appointment provisions when enacted.
• Prohibits political activity by the Commission and requires posting on the Commission's website the names of financial institutions that hold its funds; strengthens conflict-of-interest controls.
• Alters licensure qualifications for brokers and salespersons, adds mandatory state and national background checks, and sets reciprocal licensing rules for nonresidents; adds Alabama-specific coursework requirements for reciprocal licenses.
• Defines inactive status rules for licenses when a payment is faulty, requiring full payment plus penalties to reactivate.
• Repeals certain sections (county lists of licensees and related legislative findings) and implements nonsubstantive technical revisions to modernize the code.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Real Estate Commission