HB382 Alabama 2025 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

2025 Regular Session

Title

Real estate transactions; required disclosure forms; description of brokerage services; terms of compensation; required written brokerage agreements under certain circumstances; penalties and fines for certain violations; duties of qualifying brokers and licensees; scope of operation of teams

Summary

HB382 updates Alabama real estate licensing rules to require disclosures, clarify brokerage relationships, regulate teams, and tighten penalties for violations, including new co-brokerage rules with out-of-state brokers and enhanced licensing requirements.

What This Bill Does

Licensees must give buyers/sellers a written disclosure of the types of brokerage services and a general description of compensation before showing a property. After disclosure, a consumer can choose to enter a brokerage agreement, but a written agreement is only required if the licensee will list the property or submit an offer. The bill creates rules for teams and requires co-brokerage arrangements with out-of-state brokers to follow specific terms, limits, and reporting, including a three-transaction cap per out-of-state principal broker and a $50 million annual cap on Alabama transactions. It also strengthens licensee duties, creates agency disclosure policies, expands penalties for violations, and adds licensing improvements such as background checks and reciprocal licensing for nonresidents.

Who It Affects

• Real estate licensees (brokers, salespersons, qualifying brokers, and real estate companies) will have new disclosure, contract, office, team, and out-of-state co-brokerage requirements and potential penalties.
• Consumers (buyers and sellers) will receive clearer disclosures about brokerage options and services, and will have defined agency representations and responsibility when engaging licensees.

Key Provisions

• Disclosure forms: licensees must provide a consumer with a written disclosure of brokerage services and compensation before displaying property.
• Brokerage agreements: written agency agreement required only when listing or submitting offers; transaction facilitator arrangements allowed otherwise; consumer may elect brokerage arrangements after disclosure.
• Team definitions and governance: creates a team concept within a brokerage, designates a team leader, requires a list of team members, and sets advertising and naming rules.
• Co-brokerage with out-of-state brokers: requires written co-brokerage agreements, filing with the Alabama Real Estate Commission, supervision by an Alabama qualifying broker, and includes a three-transaction-per-year limit and a $50 million annual cap on Alabama transactions.
• Agency policy and disclosures: qualifying brokers must adopt and distribute a written agency disclosure office policy and obtain signed acknowledgment from licensees; disclosure forms must be used statewide.
• Duties and ethics: licensees must act honestly and in good faith, protect confidential information, present offers timely, avoid conflicts of interest without disclosure, and maintain records for three years; dual agency requires informed written consent.
• Penalties and enforcement: the commission can impose fines, revoke or suspend licenses, issue cease-and-desist orders, and recover costs; includes rules on handling declined payments.
• Licensing and process improvements: strengthens background checks and fingerprinting, establishes reciprocal licensing for nonresidents with Alabama-specific requirements, and details license issuance and renewal processes.
• Advertising and representation: clarifies when a licensee may be designated as a single agent, dual agent, or transaction broker and requires accurate representation of the broker’s name in advertising.

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

Subjects

Property & Estates