The bill aims to regulate residential real estate transactions in Alabama by requiring buyers to disclose their intent to engage in wholesale transactions. Specifically, buyers must provide written disclosures to both potential subsequent purchasers and the original seller regarding the nature of their equitable interest in the property, their intent to market that interest, and the effective date of any assignment of that interest. Violations of these disclosure requirements are classified as a Class C misdemeanor and may result in additional civil liability for the buyer.

Additionally, the bill addresses unfair service agreements that can bind homeowners for extended periods, potentially up to 40 years, and create clouds on property titles. Such agreements are deemed unenforceable if they do not meet specific criteria, including the timely performance of services. The bill prohibits the recording of these unfair agreements and establishes penalties for service providers who violate this provision. Overall, the legislation seeks to protect homeowners from predatory practices and ensure transparency in real estate transactions.

Statutes affected:
Introduced: 35-11-210, 8-19-1
Engrossed: 35-11-210, 8-19-1
Enrolled: 35-11-210, 8-19-1