SB228 Alabama 2023 Session

Updated Jan 14, 2026

Senate Bill

Enacted

Current Status

Regular Session 2023

Session

Sponsor

Summary

Primary Sponsor: Dan Roberts Senator
Republican
Session: Regular Session 2023
Title: Relating to residential real estate transactions; to require buyers to make certain disclosures to homeowners and other interested parties that the buyer intends to engage aspects of a wholesale transaction; and to deem unenforceable certain unfair service agreements purporting to establish a long-term right to list between real estate companies and residential real estate owners; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.
Description: Under existing law, a buyer may enter into a purchase and sale contract with a homeowner without disclosing to the homeowner his or her intent to wholesale the property by marketing it to other prospective purchasers willing to pay more than the contract price for the property and to assign its interest to one of those purchasers for a fee.
Under existing law, a real estate company may enter into an agreement to list certain residential real estate owner's property for a period up to 40 years and to record the agreement creating an encumbrance on the property for the duration of the agreement.
This bill would require a buyer of a single-family residential property, who intends to wholesale the property, to make certain disclosures explaining to the homeowner and other prospective parties to the transaction about the aspects of the intended transaction.
This bill would deem unenforceable certain long-term agreements between real estate companies and certain residential real estate owners.
This bill would also provide certain civil and criminal penalties for certain violations.
SB228 INTRODUCED Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.
The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.