Alabama’s 2025 regular legislative session adjourned “Sine Die” — a Latin phrase meaning “without die” — last Wednesday as lawmakers worked until near midnight to pass last-minute bills and measures.

A light year in terms of major topics when compared to previous sessions, but several issues were addressed, nonetheless. Among the topics demanding attention and debate were fighting crime, combatting illegal immigration, supporting law enforcement, awarding tax cuts, addressing healthcare, promoting energy infrastructure for economic development, and adjusting the method of allocating public education funding.

This session saw several important successes for REALTORS® and private property rights, along with an impressive turnout for REALTOR® Day and the annual legislative breakfast to show our appreciation for legislators, state officers, and staff.

Legislators filed a total of 968 bills during the 2025 regular session, compared to 843 last year. Out of the 347 Senate bills and 621 House bills that were filed, the Legislature awarded final passage to roughly 310 of them. The Governor has signed 155 House bills and 125 Senate bills, while roughly 30 bills await signature at the time of drafting.

Big Ticket Items– During her constitutionally-required “State of the State Address” on the first day of session, Gov. Kay Ivey announced her support for several agenda items, which included restructuring the Alabama Department of Veterans Affairs, a “Back the Blue” bill package to support law enforcement, paid maternity leave for state employees and teachers, creating statutory definitions for gender terms like “man” and “woman,” and providing additional support for the school choice program passed in 2024. Speaker of the House Nathaniel Ledbetter, Senate President Pro Tem Garlan Gudger, and Lt. Governor Will Ainsworth had several legislative priorities as well, including a rural hospital tax credit, energy infrastructure funding for economic development purposes, a slew of bills tackling illegal immigration, changing the per student funding mechanism for schools, and several tax cuts. 

Other Bills of Note- Other new laws of note include bills setting reimbursement requirements for pharmacy benefit managers, allowing visiting judges to be appointed for criminal cases in an effort to ease case backlogs, regulating consumable hemp products like gummies and drinks that contain THC, making Juneteenth an official state holiday, and restructuring the Birmingham Water Works Board.

The Alabama REALTORS® public policy team tracked more than 350 bills in some capacity during the 2025 legislative session, which was approximately 33% of the total bills filed, as well as numerous amendments. AAR defended against 15 bills harmful to our members and successfully attached REALTOR® amendments to 10 bills that posed potentially negative impacts on our members or property rights. Nine REALTOR® supported bills received final passage including unanimous passage of four high priority bills. Only one REALTOR® priority bill did not make it across the finish line this year.

Buyer Agreements and Showings

Act 2025-59, a REALTOR®-priority bill, affected buyer agreements and property showings. In general, the law reaffirms Alabama's existing Real Estate Consumers Agency and Disclosure Act (RECAD) framework, emphasizes early discussions of brokerage services and compensation, and protects consumers from premature binding contracts. 

It also clarifies that consumers in Alabama cannot be required to sign a binding contract simply to view a property, but the bill does not require an agent to show a property to a buyer without an agreement. Under its provisions a written buyer agreement will be required before an offer to purchase is submitted, which ensures clear terms of representation. This balanced approach urged by AAR aims to provide greater transparency and consistency for both real estate professionals and consumers.

To help our members prepare and adjust practices, we put together valuable information and guidance on our website, which may be read HERE.

The bill became effective on April 18, 2025. 

Business License Reporting and Appeals

An issue for many years, municipal business licenses were the subject of a new law supported by Alabama REALTORS®. SB 174 eases the red-tape burden on businesses by requiring local governments to report business license schedules to the Alabama Department of Revenue and making it easier for business owners to determine how much license tax they owe. The measure also allows taxpayers to appeal business license charges to the Alabama Tax Tribunal in Montgomery.

Another provision of the bill reduces the flood of mass letters from third party collection firms and ensures businesses can bring a cause of action against these firms for sending collection letters when they knew the charges are not lawfully due. It also requires that any letter sent to businesses must be accompanied by an official letter from the local government explaining that the collection firm is working on its behalf.

AAR's License Law Clarifications and RECAD Updates – Effective 10/1/2025

A bill addressing specific issues within license law was signed by the Governor last week. Carried by Rep. Jamie Kiel (R-Russellville) and Sen. Josh Carnley (R-Enterprise), the bill makes changes to real estate license law on the following key issues affecting the industry and the commission: 

1. RECAD/Dual Agency Changes: In line with many other states, the bill changes the definition of a dual agent, limiting it to when one agent represents both sides of a transaction and not when two independent agents in one company represent opposite sides. Real estate agents are predominantly independent contractors, and the change will ensure that each agent owes the full fiduciary duties exclusively to their respective client, rather than the more limited responsibilities of dual agency. The bill also tweaks the definition of “agency agreement” to reflect the designation by the qualifying broker. 
2. Reasonable Regulation for Teams: Recent years have seen more widespread use of real estate teams or groups, in which real estate agents work together under a specific name that is a sub-group within a real estate company. The bill sets a basic definition for teams, creates reasonable rules on advertising, and clarifies broker responsibilities for teams to promote transparency to consumers and ensure professionalism by the team or group. The bill expressly prohibits additional licensing or registration by teams or team members.
3. Sets Parameters for Co-Brokerage Agreements with Out-of-State Brokers: Adds specific requirements and limitations on out-of-state co-brokerage agreements for Alabama transactions, including setting the max number at three transactions per year, with a portfolio of properties equaling one transaction, a $50,000,000 maximum in transaction volume per year, and requiring the Alabama broker to supervise the actions of the out-of-state broker.
4. Use of Branch Offices: Current law has an antiquated prohibition on real estate agents using any branch office to meet clients other than the physical office where their license is held. The bill lifts that prohibition to allow agents to use any office of their brokerage.   
5. Failed Payments to AREC - Bad Checks/Incorrect E-payment Numbers: The bill allows failed payments to be handled administratively rather than requiring a full hearing by AREC. With the extensive use of electronic payments for license fees and other charges, licensees who inadvertently input the wrong account or routing numbers find themselves in violation of current law and subject to a hearing before the full Alabama Real Estate Commission. The bill will keep these administrative oversights from requiring a full hearing. 
6. Increases the Maximum Fine from $2,500 to $5,000: Current law has set the maximum amount a licensee can be fined at $2,500 per violation. Through the years, the maximum fine has become less of a deterrent for bad conduct and license law violations. The bill increases maximum fines imposed by the Alabama Real Estate Commission from $2,500 to $5,000.  

The bill takes effect October 1, 2025. 

AREC's Real Estate Licensing and Education Updates – Effective 10/1/2028

A third real estate bill, sponsored by the Alabama Real Estate Commission, also became law last week. The bill passed unanimously after Alabama REALTORS®, the bill sponsors, and AREC reached a compromise agreement on its provisions. AAR's governmental affairs team worked to pass HB 225 following the compromise agreement. 

As passed, HB 225 makes changes to real estate education and licensure requirements focusing on four broad categories:  

1. Enhanced Licensure Requirements: The bill increases the requirements to obtain a real estate salesperson (i.e. agent), broker, and qualifying broker license. The increased requirements are mainly a higher number of hours necessary to obtain each license, and increasing the years a person must be in the business before being able to fill the supervisory role of qualifying broker. The bill also requires a licensee on inactive status (i.e. not working as a licensee) to retake certain courses if inactive for a long period of time to ensure they remain up-to-date on legal requirements.
2. Education Updates: The bill updates definitions; allows for greater delivery of online education and one hour CE to increase education accessibility; inserts accountability measures for pre-license schools if their students fail taking license examinations; codifies continuing education for instructors; codifies a renewal and inactive process for educators and schools; and creates a process for the commission to approve distance education for pre-license and continuing education; and increases the fine for license law violations by schools, administrators and instructors from $2,500 to $5,000.
3. Operational Clarifications: The bill updates the code in several areas to make it easier for licensees to do business, such as updating the process for a company to have a temporary qualifying broker when the permanent qualifying broker is unable to perform his or her duties.
4. Streamlines Statutory Language and Processes: Because real estate license laws are extremely confusing and often overlap, the bill updates definitions, deletes redundant language, and moves language between sections to improve readability and flow.

The bill will be effective October 2028. 

Zoning Appeals Process

Act  2025-331 sets a few additional rules for appealing the final decisions of municipal zoning boards of adjustment. Supported by Alabama REALTORS®, the law sets a 30-day time frame for appeals to the circuit court and fleshes out the process for filing an appeal. The bill would provide more certainty for these appeals and benefit developers and others by establishing a more uniform process.

Ad Valorem Tax Committee Expanded

SB 233, sponsored by Sen. David Sessions (R-Grand Bay), will add two consumer members to the Ad Valorem Advisory Committee, a committee established several years ago and comprised of local tax collecting officials and the Department of Revenue. While the committee is strictly advisory and has no authority, two consumer members will ensure taxpayer interests and concerns are represented in its work and recommendations. Alabama REALTORS® supported the bill for giving a greater voice to Alabama’s taxpayers.

Mail Theft Crime Established

The legislature created a new crime for mail theft. SB 108, sponsored by Sen. April Weaver (R-Brierfield), makes stealing mail a Class A misdemeanor, but also includes stepped up penalties based on the number of addresses from which the thief steals mail and whether the person is trying to obtain personally identifiable information. Alabama REALTORS® supported the legislation as a way to deter theft of checks, which is an issue for our members and other businesses.

HVAC System Warranty Transfers

Act 2025-374 establishes regulations for the transfer of HVAC system warranties. Supported by Alabama REALTORS®, the new law will require the automatic transfer of any existing manufacturer’s warranty on a residential HVAC system when the residential real property is sold. The law will only apply to manufacturer’s warranties entered into or renewed after October 1, 2025

Abandoned Road Reversion – REALTOR® Amendment Added

The governor signed legislation clarifying the process for the reversion of ownership of abandoned roads back to the original owner. SB 42, by Sen. Tim Melson (R-Florence), allows the original owner to apply to the state, county, or city for the return of the right-of-way. A provision requested by Alabama REALTORS® was included in the final bill to protect property owners who could not otherwise access their property if the roadway is closed. 

Personal Property Tax Exemption Threshold Increased

In a win for businesses, a new law will increase the state ad valorem tax exemption threshold on tangible personal property for businesses from $40,000 to $100,000 in market value. 

Drones and Private Property Rights – REALTOR® Concerns Taken Into Account

Unmanned aircraft systems, or drones, were the topic of several bills. One bill that did not pass but likely to come back in the future dealt with flying drones near schools and neighborhoods. House Bill 201 would have prohibited the use of a drone near a school without the consent of the superintendent and in any place an individual has an expectation of privacy, like a backyard. AAR worked with the bill sponsor to allow REALTORS® and others who use drones to photograph or view property to continue to do so, while ensuring owners are protected from unreasonable intrusions on their property. Ultimately, the bill did not pass the first chamber due to concerns over its impact on recreational drone use. 

Shark Alert System – Private Property Rights Protected

The “Lulu Gribbin Shark Alert System Act,” the law is named after a 16-year-old Mountain Brook girl who was attacked while swimming and later pushed for a notification system for aggressive shark activity along Alabama’s Gulf Coast. HB 437 creates an emergency alert system for smart devices — similar to an Amber Alert — that can be triggered when shark attacks occur near shore. The notifications are limited to Mobile and Baldwin counties and based on geographical proximity to the emergency. Alabama REALTORS® expressed concerns with an earlier version of the bill that would have required property owners to participate and had civil penalties for non-participation. 

Energy Infrastructure for Economic Development 

Legislative leadership prioritized passage of a measure designed to encourage economic development through the funding of energy infrastructure projects. SB 304, sponsored by Sen. Orr, will allow the state to borrow up to $1 billion to provide loans or financial assistance for energy infrastructure projects. The focus of the funds would be on the power lines and poles, transformers, and other equipment necessary to power an economic development project. Under the bill’s provisions, 40% of the funds would first be available to rural projects, or projects with populations fewer than 135,000. 

Public Nuisance Bill – REALTOR® Amendments Added

Another bill that did not pass but could be back another year,  HB 280 dealt with public nuisances and focused primarily on house parties. The bill was intended to deter the occurrence of un-permitted house parties that attract hundreds of ticket-buying attendees and would have allowed public institutions of higher education, like the University of Alabama, and cities to recoup costs for shutting down and cleaning up after these unauthorized events. Alabama REALTORS® and other interested groups worked with the sponsor to strike counties from the bill and provide protections for property and business owners, landlords, and property managers who are not involved in the nuisance events.

ATVs Navigable Water Ways

Another new law prohibits the use of trucks and ATVs on submerged land in navigable waterways. The law is meant to deter individuals from using ATVs to ride up creeks into other peoples’ property. 

Residential Construction Permit Fee for Trade Academy

Pushed by the Alabama Homebuilders Association, HB 335 became law and will allow local governments to adopt and add a fee of up to $20 on every permit associated with residential construction or renovation. The fee will go to the Alabama Construction Trade Academy Fund and support the training of skilled labor for the homebuilding industry. The new law is a continuation of a program started in Huntsville last year. 

Protections Against Eminent Domain – REALTOR® Amendments Added

Laws are often passed to create various entities such as housing authorities, airport authorities, or special improvement districts, and many of these quasi-governmental agencies possess eminent domain powers. When laws related to these entities are revised, AAR reviews the proposed changes carefully. In that vein, Alabama REALTORS® successfully attached amendments on two bills to ensure eminent domain powers were not expanded, clarifying that eminent domain powers would not transfer to any public-private partnerships created by the quasi-governmental entity.

Dry Cleaning Trust Fund Changes

One new law amends the code governing the Dry Cleaning Response Trust Fund, which is funded by that industry and allows for the cleanup of contaminated dry cleaning sites. The law decreased the minimum amount required to stay in the fund to $250,000 in order to facilitate greater use of its proceeds.

Tax Tribunal – Appeal Timeline Extended

Another new law provides taxpayers additional time to file appeals of levies they consider unjust to the Alabama Tax Tribunal. Current law allowed a taxpayer 30 days after receiving mailed nofitication or personal service to appeal a final assessment from the Alabama Department of Revenue. The new law changes the deadline to 60 days.

Guided by our Public Policy Committee, Alabama REALTORS® advocated strenuously on behalf of real estate professionals and private property rights during the 2025 regular legislative session. The Alabama REALTORS® public policy team is honored to work on your behalf and advocate for you, your businesses, and private property rights in Alabama. 

Thank you to all our members who participated this legislative session, whether at REALTOR® Day, reading Capitol News and Notes, or otherwise. Your support empowers us to protect the real estate industry across Alabama.