The Alabama Real Estate Commission (AREC) held its fifth meeting of the year on May 25. As usual, the meeting began with remarks by the Executive Director to the Commission and hearings followed. Continue reading for a summary of the hearings, including some best practices.

The Commission had nineteen cases on the docket this month, although a few were not heard at this time and instead, they were continued to future hearing dates. Of those, the majority were applications for temporary salesperson licensure, most of which were granted. There were also a few formal complaints, a couple requests for extensions for license-related matters, one request to voluntarily surrender license, and one request for rehearing. 

Of the formal complaints, many were related to bad e-checks and insufficient funds. Guilty verdicts were issued against licensees, and fines assessed even in cases of financial emergencies and unexpected expenses, which highlights the importance of careful bookkeeping when it comes to license-related fees. 

The most serious complaint was brought against a licensee for editing a contract without first obtaining the parties’ permission. Although the licensee did not attempt to hide the change (it was indicated by the licensee’s initials on the face of the document), the Commission was highly concerned by the licensee altering the contract at all. In this case, the Commission voted to revoke licensure and assess a fine of $2,500. This should serve as a reminder to never alter a signed contract in any way. Licensees representing clients are not parties to contracts to purchase real estate and, even with permission of the parties, should not alter a contract. Absent legal authority to bind the parties, a licensee’s changes are not binding and may subject a licensee to further legal action.

One hearing dealt with a licensee who applied to voluntarily surrender their license. The licensee stood accused of falsifying witness signatures on a quitclaim deed. The Commission viewed this as an extremely high-level violation and accepted the license surrender. It will be treated as a revocation.

The Commission will meet next on June 22 at 9 am in Montgomery. As decided earlier, there will not be a July 2023 Commission meeting.