The Alabama Real Estate Commission held its monthly meeting in Montgomery on August 22. Although new real estate license applications are down compared to this time last year, rates of new applications have held steady for the past couple months, at a rate of 7.54 applications per day in July. The Commission announced that it has successfully located a new Assistant Executive Director, who will begin work this fall. AREC also announced that it will be proposing changes to Alabama real estate rules, which you can read more about below. 

The Commissioners voted to submit proposed rules changes to the Alabama Legislative Services Agency, the state agency that assists with preparing proposed legislation. The proposed changes relate to the following rules:

• Alabama Real Estate License Law Rule 790-x-1-.03: License Requirements
• Alabama Real Estate License Law Rule 790-x-1-.05: Out-of-State Co-Brokerage Agreement
• Alabama Real Estate License Law Rule 790-x-1-.06: Prelicense and Post License School Approval and Requirements
• Alabama Real Estate License Law Rule 790-x-1-.12: Continuing Education Course Approval and Requirements
• Alabama Real Estate License Law Rule 790-x-1-.18: Reciprocal License Requirements 
• Alabama Real Estate License Law Rule 790-x-1-.21: Distance Education
• Alabama Real Estate License Law Rule 790-x-2-.05: Names on Applications for Licenses
• Alabama Real Estate License Law Rule 790-x-2-.07: Place of Business and Signage
• Alabama Real Estate License Law Rule 790-x-3-.03: Deposit of Funds
• Alabama Real Estate License Law Rule 790-x-3-.04: Estimated Closing Statement
• Proposed New Rule: Alabama Real Estate License Law Rule 790-x-3-.16: Defining what “prominently” means in the context of Alabama Real Estate License Law advertising requirements

This month’s hearings involved license law violations of many kinds. So, we’ve compiled the following list of license law reminders to help keep you compliant:

• Disclosing Your Interest: If you have or plan to acquire an interest in a transaction (whether in the property itself or in the parties to the transaction), Alabama license law requires that you disclose that fact and obtain the written consent of any involved parties. If you’re an AAR member or forms purchaser, you can use AAR’s Personal Interest Disclosure (Form 2.10) to document the parties’ consent.  
• RECAD: When you first meet with a consumer, you must provide them with a copy of the Alabama Real Estate Brokerage Services Disclosure Form (RECAD) so they can decide whether they want agency or transaction brokerage services. Although you are required to provide the consumer with the form, the consumer is not required to sign it. A copy of the form should be maintained with the consumer’s file for 3 years. (Please note that this requirement is separate from NAR’s new rules related to consumer agreements.) 
• Net Sheet(s): A new net sheet should be completed and provided to the buyer with every offer or counter-offer that affects the transaction’s financial information. All net sheets should be maintained in the consumer’s file for 3 years. 
• Licensee-Only: As a reminder, there are several types of tasks that only a real estate licensee may legally perform and be compensated for. Most notably, only a real estate licensee or property owner may offer to sell and negotiate the sale of a property. (A full list of licensee-only tasks can be found in Alabama Code 34-27-30.) If a licensee hires a non-licensee to assist with prohibited tasks, both the licensee and the non-licensee are guilty of violating the law. 
• Advertisements Must Identify Your Brokerage: Every advertisement you make, including social media posts, must include your brokerage’s name. (For more information about advertising requirements, see AAR’s article here.)