HB586 Alabama 2026 Session

Summary

Primary Sponsor

Margie WilcoxRepresentative

Republican

Session

2026 Regular Session

Title

Alabama Real Estate Commission; license required for real estate wholesalers, real estate wholesalers and unsolicited real property solicitors must provide disclosures, Alabama Securities Commission, authorized to enforce, penalties imposed for violations

Summary

HB586 would regulate real estate wholesaling by requiring licenses, mandating disclosures, and giving concurrent enforcement power to the Alabama Real Estate Commission and the Alabama Securities Commission with penalties for violations.

What This Bill Does

It defines equitable interest and real estate wholesaling, and requires wholesalers to be licensed by the Alabama Real Estate Commission. It mandates disclosures in wholesaling transactions and in unsolicited investment-oriented property solicitations, with the Alabama Securities Commission establishing and enforcing standard disclosure language alongside the Real Estate Commission. The bill gives both commissions enforcement authority (including fines, cease-and-desist orders, and references for investigation), and adds a seven-day rescission window for certain unsolicited contracts. It also creates new definitions and clarifies penalties for violations.

Who It Affects

• Real estate wholesalers must obtain a license and provide required disclosures, with penalties for noncompliance.
• Homeowners/sellers and prospective buyers involved in unsolicited or investment-oriented real estate offers gain protections through mandated disclosures and a potential seven-day rescission period in qualifying cases.

Key Provisions

• Defines equitable interest and real estate wholesaling and applies these to single-family residential properties.
• Requires real estate wholesalers to be licensed with the Alabama Real Estate Commission; Alabama Securities Commission has concurrent regulatory authority over wholesaling.
• Introduces the concept of investment-oriented real property solicitation and requires standard disclosures, with ASC to establish disclosure language and enforce violations.
• Disclosures in wholesaling transactions must include: nature of the equitable interest, intent to market or assign, effective date of assignment, and fixed closing date.
• Violations may incur fines up to $100,000 per violation (aggregate cap $10 million per order) and can include other penalties; cease-and-desist orders and restitution are possible; commissions may refer cases to ASC.
• Unsolicited contracts for real estate may be rescinded by the seller within seven days under specified conditions, with certain protections for use of licensed professionals.
• The act adds new code sections (8-42-1.1, 8-42-1.2, 8-42-1.3, 8-42-4) and updates related provisions for enforcement and consumer protections.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 31, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Protection