Senate Bill 246 Alabama 2026 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

2026 Regular Session

Title

Consumer protection; unsolicited offers to purchase real estate, unfair service contracts, regulated

Summary

SB246 would protect Alabama homeowners from unsolicited investment-oriented real estate solicitations and unfair service agreements by giving the Alabama Securities Commission new regulatory power, owner protections, and penalties.

What This Bill Does

It treats investment-oriented real property solicitations like unfair service agreements and authorizes the Alabama Securities Commission to regulate, investigate, enforce, and impose civil fines and penalties for violations. It requires unsolicited offers to include specific notices, allows owners to opt out and cancel certain unsolicited purchase contracts, and classifies violations as deceptive trade practices. It creates new definitions, expands regulatory authority, and establishes a consumer recovery fund funded by penalties to compensate victims; the act would take effect on October 1, 2026. It also updates existing code language to current style and sets exemptions for certain common real estate activities.

Who It Affects

• Homeowners and property owners in Alabama would receive explicit notices with unsolicited offers, have a clear opt-out option, and the ability to cancel certain unsolicited purchase contracts, providing stronger protection against predatory practices.
• Investment-oriented solicitors, real estate service providers, brokers, and related businesses would be subject to new regulation by the Alabama Securities Commission, face licensing and enforcement rules, must keep records, and could incur substantial civil fines and penalties for violations.

Key Provisions

• Establishes a new regulatory framework with definitions (investment-oriented real property solicitation, unfair service agreement) and grants the Alabama Securities Commission authority to regulate, investigate complaints, license, and impose civil penalties, including a consumer recovery fund to compensate victims.
• Imposes notice, opt-out, and cancellation requirements on unsolicited offers to buy real property, requires specific disclosures and conspicuous notices, outlines enforcement mechanisms and exemptions, and provides that violations are enforceable as deceptive trade practices.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Protection