HB225 Alabama 2025 Session

Summary

Primary Sponsor

Rolanda HollisRepresentative

Democrat

Session

2025 Regular Session

Title

Alabama Real Estate Commission; prelicense, continuing education schools, instructors established and regulated; licenses, approvals established and further provided for; disciplinary authority, certain fees revised

Summary

HB225 reorganizes Alabama's real estate education and licensing rules, creating separate tracks for prelicense and continuing education, expanding distance learning, adding bonding and fee changes, strengthening oversight, and setting new activation and renewal rules—effective October 1, 2028.

What This Bill Does

The bill creates distinct regulatory paths for prelicense schools and continuing education schools, and sets requirements for instructors and administrators. It introduces inactive status options and new renewal/expiration rules for licenses and approvals, plus bonding for certain schools and new penalties for violations. It authorizes synchronous distance education, updates fees and periods for licenses, and updates reciprocal licensing, temporary licenses, and broker-qualification rules. It also requires criminal background checks for license applicants and adds disciplinary procedures.

Who It Affects

• Real estate education providers (principal, branch, and proprietary schools; administrators and instructors) who must meet new approvals, bonds, signage, and fee requirements, and especially those offering prelicense or continuing education.
• Real estate license applicants and holders (brokers, salespersons, qualifying brokers) who face new licensing pathways, renewal deadlines/fees, temporary licenses, reciprocal licensing, background checks, and supervision requirements.

Key Provisions

• Creates separate definitions and requirements for prelicense schools versus continuing education schools, with the Alabama Real Estate Commission as the regulator.
• Requires proprietary principal schools to post a surety bond up to $20,000 to cover tuition/fees and ensure complete instruction; bond must remain in place for as long as licensed and must be renewed if canceled.
• Imposes new and revised license/approval fees and renewal fees for schools, continuing education, instructors, and related entities, with schedules (e.g., principal/branch prelicense school license $250; renewal $125; CE schools $100 annual; renewal $50).
• Allows the commission to certify synchronous distance education courses for prelicense, postlicense, and continuing education, with specific fees and limits (up to $400 per application; course limits; evaluation criteria).
• Overhauls licensure processes for brokers and salespersons, including reciprocal licenses for those with licenses in other states, temporary licenses, required exams, and the role of qualifying brokers and transfer rules; adds supervision requirements.
• Adds mandatory background checks (state and federal) for license applicants, with applicant-paid costs, and strengthens disciplinary authority with defined penalties and performance-improvement plans; introduces inactive status and reactivation procedures.

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

Subjects

Authorities, Boards, & Commissions