House Bill 586 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 creates the Alabama Property Deception Prevention Act to regulate real estate wholesaling, require licensing and disclosures, and empower the Alabama Securities Commission to enforce penalties.

What This Bill Does

It sets up new rules to protect homeowners from deceptive investment-based real estate schemes. Real estate wholesalers must be licensed by the Alabama Real Estate Commission and must provide specific disclosures to all parties in a wholesaling contract. The Alabama Securities Commission will have concurrent authority with the Real Estate Commission to regulate and enforce these rules, including imposing fines and pursuing enforcement actions. The bill also requires standard disclosures for investment-oriented property solicitations and gives sellers a seven-day window to rescind certain unsolicited offers, with protections and remedies if those offers are not responsibly disclosed.

Who It Affects

• Real estate wholesalers (must be licensed and provide required disclosures)
• Property owners, buyers, and sellers involved in wholesaling or investment-oriented solicitations (receive disclosures, have rescission rights, and are protected from deceptive practices)

Key Provisions

• Creates the Alabama Property Deception Prevention Act and defines terms like equitable interest, real estate wholesaling, and investment-oriented real property solicitation
• Requires real estate wholesalers to be licensed by the Alabama Real Estate Commission and to disclose specified information in wholesaling contracts
• Authorizes concurrent jurisdiction for enforcement by the Alabama Securities Commission and the Alabama Real Estate Commission, including penalties and the ability to refer cases to the SEC
• Establishes standard disclosures for investment-oriented solicitations and empowers the SEC to enforce them
• Provides for civil penalties up to $100,000 per violation (aggregate cap $10 million) and various enforcement tools (cease-and-desist orders, restitution, etc.)
• Imposes a seven-day rescission period for unsolicited real estate offers to purchase, with conditions and protections for sellers
• Defines and clarifies enforcement procedures, exemptions, and licensing requirements (with several exemptions for specific parties and activities)
• Effective date: October 1, 2026

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

Subjects

Consumer Protection