AREC Holds February 2024 Meeting

AREC Holds February 2024 Meeting

The Alabama Real Estate Commission (“AREC”) held its monthly meeting on February 22 in Montgomery. All Commissioners were present at the meeting. The AREC Executive Director opened the meeting with remarks about license numbers: AREC currently has over 41,000 total licensees and is receiving applications at a rate of 8.57 per day. The Commission continues to audit companies that have not been audited in the past 3 or more years and has performed 15 company audits since the last Commission meeting. Read on to learn more about best practices from the hearing docket. 


Ensure Clients Understand Their Contracts

One of the formal complaints this month was from a consumer who alleged that a listing agent told him improvements would be made to his backyard that were ultimately never made. The listing agent denied promising the consumer to make any improvements and the purchase agreement did not mention the improvements in question. The Commission found that the listing agent was not in violation of license law because the consumer had completed several contracts, including the purchase agreement and multiple walk-through review forms, that were silent as to the improvements. Although the buyer’s agent did not have a complaint filed against her, the Commission noted on several occasions that the buyer’s agent should have better ensured that the buyer fully understood the documents that he was signing. If you are working with a consumer who has a particular concern or goal, or if the consumer has questions about the effect of a legal document, you should always refer them to a qualified attorney before moving forward with a transaction. 


Promptly Respond to AREC Requests

Another formal complaint stemmed from a licensee’s failure to cooperate with AREC’s attempt to audit her company. The licensee failed to respond to AREC’s request for records during the allotted time and had still not responded as of the time of the hearing. Although the licensee talked about several personal issues that have recently impacted her, the Commission was nonetheless bothered by her lack of attention to AREC business. As a result, the Commission imposed the most severe penalty possible, revoking both her and her company’s licenses and imposing a $2500 fine, in addition to a fine against her company. 

The next AREC meeting will be held at 9 am on March 21, 2024 in Montgomery.