SB212 Alabama 2025 Session

Summary

Primary Sponsor

Josh Carnley Senator

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

Description

Under existing law, a licensee of a real estate transaction must provide a written disclosure form to a consumer describing the types of brokerage services as required by the Real Estate Consumers Agency and Disclosure Act (RECAD), prior to a consumer disclosing any confidential information. This form is adopted by the Alabama Real Estate Commission. In addition, a licensee must inform the consumer of the brokerage services specifically provided by the licensee's company. A written agreement is required to establish an agency relationship but is not required to establish a transaction facilitator relationship.

This bill would provide that a consumer must receive a disclosure form from the real estate licensee prior to a licensee showing him or her a property, and the disclosure of the specific brokerage services the licensee's company provides must be in writing and include general information related to compensation of the licensee.

This bill would provide that after the disclosure, a consumer retains the option to enter into a brokerage agreement with the brokerage company; however, the consumer is not required to enter into a written brokerage agreement as a prerequisite to the SB212 INTRODUCED licensee showing him or her a property.

This bill would further provide that a licensee and consumer are only required to execute a written brokerage agreement if the licensee will either list the property for sale or submit an offer to a seller on behalf of the consumer; and any brokerage agreement entered into must provide terms of compensation to the licensee and company.

This bill would provide for a licensees use of any office of the company under which he or she is licensed.

This bill would further provide for penalties and fines for certain violations.

This bill would provide for handling declined methods of payment for license fees.

This bill would further provide for the duties of qualifying brokers and licensees.

This bill would also establish the scope of operation for teams.

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Subjects

Property & Estates