Alabama Real Estate License Laws & Rules Title 34 – Chapter 27

About This Book

Alabama Real Estate License Laws & Rules (Title 34, Chapter 27) govern the state's real estate industry and are administered by the Alabama Real Estate Commission. The code covers a broad range of topics, including licensing requirements, advertising standards, recovery funds, and wholesaler regulations.

Core Articles & Provisions

The chapter is organized into key articles that define the legal framework for real estate operations in Alabama:

• Article 1 – General Provisions: Establishes core definitions and creates the Alabama Real Estate Commission. It outlines exemptions for property owners and sets rules for out-of-state brokers operating through co-brokerage agreements.

• Article 2 – Licenses: Details licensing requirements for individuals, companies, and branch offices. It also establishes the Recovery Fund and lays the groundwork for disciplinary actions and Errors & Omissions insurance requirements.

• Article 3 – Vacation Time-Sharing Plans: Specifies the registration, licensing, and consumer protection requirements that apply to the sale of timeshares in Alabama.

• Article 4 – Consumer Agency & Disclosure Act: Mandates agency disclosure and defines the nature of consumer relationships in real estate transactions.

Key Rules to Know

• Licensing Requirements: Any individual acting as a broker or salesperson in exchange for compensation must hold an active license.

• Advertising Standards: All advertising, including social media, must clearly and prominently display the licensed broker's or company's name.

• Wholesaling Mandates: Wholesalers are required to provide written disclosures of their equitable interest to both sellers and potential buyers, ensuring transparency throughout the transaction.