A Letter to the Membership: HB 382

A Letter to the Membership: HB 382

August 8, 2025

Dear Alabama REALTORS®,

As summer winds down, we want to update you on important changes in Alabama real estate license law taking effect on October 1, 2025.


Earlier this year, the Alabama REALTORS® (AAR), worked with the Alabama Legislature to pass several updates to Alabama license law. We appreciate the Alabama Real Estate Commission’s (AREC) assistance with this effort, including making AREC’s legal counsel available prior to the start of the legislative session, as we sought AREC’s input on AAR’s proposed legislation for practical challenges related to regulatory enforcement. The following license law bills were passed during the 2025 legislative session:

 

This update focuses on HB 382 (Alabama Act 2025-380), which takes effect on October 1, 2025.

HB 382 Makes Changes To: 

  • Teams: Alabama license law will now include requirements regarding real estate teams.   
  • Limited Consensual Dual Agency: Limited Consensual Dual Agency will be eliminated and replaced with Dual Agency, which will have different requirements.
  • Transaction Brokers: The term “transaction broker” will be replaced with the term “transaction facilitator”.
  • RECAD: The RECAD Brokerage Services Disclosure Form will be updated to align with the changes related to dual agency and transaction facilitators.
  • Out-of-State Co-Brokerage Agreements: Additional requirements and limitations regarding interstate co-brokerage agreements will be added to Alabama license law.
  • Any Office Location: As of 10/1/25, licensees will be able to use any office location of a company under which (s)he is licensed.
  • Bad Checks/ E-Payments: Submission of a bad check or a declined e-payment to AREC will no longer be considered a license law violation. Instead, AREC will have an administrative process to handle these issues.
  • Maximum Fine Amount: The maximum fine amount for a license law violation will increase from $2,500 to $5,000.

VISIT THE HB 382 RESOURCE PAGE

To help you prepare for the upcoming changes under HB 382, we’ve created a dedicated website page with resources. This page includes written guidance and frequently asked questions. 

In the future, it will be updated to include recordings of our upcoming webinars and previews of the updated AAR Statewide Legal Forms. 

This resource hub is designed to support you through these changes.

 

REGISTER NOW FOR UPCOMING TRAININGS

The Alabama REALTORS® Legal Team will be hosting a webinar series throughout the month of September to explain the changes made by HB 382 to Alabama Real Estate License Law and answer frequently asked questions.

Each webinar will last 30-45 minutes. These webinars are free, but registration is required to attend. All webinars will be recorded and available on the Alabama REALTORS® website for those unable to attend. 

A webinar schedule is below, and you can find links to register for each webinar on the resource page. 

  • September 4 at 10:00 AM: Real Estate Teams
  • September 9 at 10:00 AM: Dual Agency, Designated Single Agency, Transaction Facilitator, and RECAD
  • September 16 at 10:00 AM: Interstate Co-Brokerage Agreements and Advertisements          
  • September 23 at 10:00 AM: Administrative Changes and Final Questions

SUBMIT YOUR QUESTIONS

If you have questions about HB 382, we encourage you to submit them to the Alabama REALTORS® Legal Line before the first webinar training on September 4.

Please reach out to us if you have any questions or comments. 

Warm regards,

Mary Jane Owen
Public Policy Chair
Alabama Association of REALTORS®

Jeremy Walker
Chief Executive Officer
Alabama Association of REALTORS®