The Alabama Real Estate Commission (“AREC”) held its first meeting of 2026 on January 15th in Montgomery. The Executive Director noted that AREC is currently receiving an average of almost seven new license applications per day. Of note, 563 complaints filed were filed with AREC in 2025. Nine formal hearings were held at the January meeting – read on to learn more about the hearings and takeaways that you can incorporate into your real estate practice. 

One case involved a licensee attending their first continuing education course with a coworker. The coworker registered them both but never attended the class. The licensee who did attend signed both their name and the coworker’s name on the sign-in sheet, twice, under the assumption the coworker would show up later.

Even though the licensee told the instructors what happened, signing another person’s name – especially when that person isn’t present – is considered dishonest conduct. The licensee was found guilty and fined. This matter served as an important lesson: always sign only your name when attending CE courses (or any other attendance-based event). 

Another case involved a licensee who delayed providing records during an AREC audit. Over several months, the licensee repeatedly promised to deliver documents but never did, citing technology issues. The requested information was not provided until 4:00 p.m. the day before the hearing. 

The Commission found the licensee and their two companies guilty, imposed a total of $14,000 in fines, and suspended the individual’s license. The suspension will remain in place until a later Commission meeting, when the Commission will decide whether the audit is satisfactory. This case highlights the principle that failing to timely cooperate with an AREC audit can lead to serious consequences.  

Two hearings reinforced an important rule: Any arrest, as well as the outcome of the charges, must be reported to AREC within 10 days. Specifically, Ala. Code § 34-27-31(j)-(k) requires that the reports be written and sent to AREC via certified mail. 

In one case, a licensee was arrested in May 2025, and the charges were resolved in August 2025. The licensee didn’t report either event and did not respond to the formal complaint or appear at the hearing. The Commission found the licensee guilty and imposed a separate fine for each failure to report. 

In another case, a licensee was also fined for failing to timely report an arrest and its disposition to AREC. The licensee did not pay the fine as ordered, which resulted in a second formal complaint. Although the licensee appeared at the hearing and explained financial hardship, the Commission found a failure to comply with its prior order and imposed an additional fine. These cases reinforce that required reports must be made on time and Commission orders must be followed. 

If you need help with these topics and are an Alabama Association of REALTORS® member, please contact the Legal Line.