The bill HB382 amends various sections of the Code of Alabama 1975 to modernize and clarify regulations surrounding real estate transactions. Key insertions include definitions for "Buyer's Agreement," "Listing Agreement," and "Team," which delineate the relationships between real estate companies and clients. The bill also establishes new requirements for brokerage agreements, mandating that a written agreement must be in place before a licensee can show a property or submit an offer. Additionally, it introduces provisions for co-brokerage agreements involving out-of-state brokers, requiring Alabama brokers to supervise transactions and verify licensing status. The bill enhances penalties for license violations, allowing fines up to $5,000 and emphasizing the need for written consent in dual agency situations.

Significant deletions from current law include the removal of outdated terms and phrases, such as "nonresident" and "shall have the respective," streamlining the language for clarity. The bill also eliminates the previous cap on fines for license violations and removes provisions that allowed for transaction brokerage without a signed agreement. Furthermore, it mandates the use of standardized agency disclosure forms and requires qualifying brokers to adopt written policies regarding agency disclosures. Overall, HB382 aims to improve transparency, accountability, and compliance within Alabama's real estate regulatory framework, ensuring that consumers are well-informed and that licensees adhere to updated standards.

Statutes affected:
Introduced: 34-27-39
Engrossed: 34-27-39
Enrolled: 34-27-39