HB13 Alabama 2024 Session

Summary

Primary Sponsor

Rolanda HollisRepresentative

Democrat

Session

Regular Session 2024

Title

Real estate professionals, licensing requirements, limitations and penalties related to duration of residential listing agreements, requirements and penalties related to disclosure of equitable interests in contracts, limits transactions with licensed out of state professionals.

Summary

HB13 tightens Alabama's real estate licensing and practice rules by adding training and licensure requirements, regulating out-of-state co-brokerage, expanding disclosures, creating team licenses, and strengthening enforcement.

What This Bill Does

The bill adds training, qualification, licensure, and renewal requirements for real estate companies, brokers, salespersons, teams, training schools, and applicants, including background checks and bonds for schools. It restricts transactions with licensed out-of-state co-brokers, requiring written agreements, Alabama broker supervision, filing with the Real Estate Commission, and limiting both the number of transactions and total value. It establishes a comprehensive agency disclosure framework, standard forms, and clear definitions of agency relationships (single agent, dual agent, and transaction broker). It creates a new team-licensing framework with rules, fees, and oversight. It also enhances penalties and enforcement options for licensee violations.

Who It Affects

• Alabama-licensed real estate professionals (brokers, salespersons, and companies) and licensed real estate schools will face new training, licensing, renewal, bonding, and oversight requirements.
• Out-of-state co-brokers working with Alabama licensees, and the Alabama licensees who interact with them, will be subject to co-brokerage limits, filing requirements, supervision obligations, and potential penalties for noncompliance.

Key Provisions

• Training, licensure, and renewal requirements for real estate companies, brokers, salespersons, teams, schools, administrators, and instructors, including background checks and bonds for certain schools.
• Restrictions and requirements for co-brokerage with licensed out-of-state brokers, including annual transaction limits (three per calendar year), a $50 million annual cap, written agreements, Alabama broker supervision, listing exposure, and filing with the Alabama Real Estate Commission.
• Comprehensive agency disclosure framework with mandatory disclosures to clients, standard office policy forms, and clear definitions of single agent, dual agent, and transaction broker relationships.
• Revisions to residential listing agreements requiring a definite expiration date and prohibitions against encumbering property by recording listings with probate offices, plus related advertising and posting requirements.
• Introduction of a team licensing system, including team leader qualifications, license periods, annual renewal fees, dissolution/changes processes, and supervisory responsibilities by qualifying brokers.
• Expanded enforcement and disciplinary powers for the Real Estate Commission, including fines, cease-and-desist orders, restitution, and enforcement actions for violations by licensees or licensees acting through corporations or teams.

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

Subjects

Insurance