The Alabama Real Estate Commission (“AREC”) held its second meeting of 2026 on February 19th in Montgomery. The Executive Director noted that AREC is currently receiving an average of more than seven new license applications per day. In addition, the Commission completed five school audits and eight company audits in January. As always, the hearings offered practical reminders that even small decisions can carry significant consequences. Below are key cases from this month’s meeting and the takeaways you can incorporate into your practice.  

One case involved a licensee interested in purchasing a home in their individual capacity. The MLS licensee notes – entered by co-listing licensees at the request of the seller – stated the property was not to be shown without interested buyers providing a pre-approval letters and that a listing licensee must be present for any showing. 

The interested buyer, who is also a licensee, intended to purchase the property with cash and had communicated that to one of the co-listing licensees. However, rather than providing proof of funds as required by the seller’s listing instructions, the interested buyer licensee submitted a previously issued pre-approval letter and altered the date to make it appear current.

The Commission found the licensee guilty of misrepresentation for altering the document and imposed a fine. This case served as an important lesson to licensees – if a seller requires proof of qualification, you must provide accurate and current documentation. Never alter or modify an existing document to meet a requirement.

Two separate cases involved licensees who had recently begun working in new areas and were operating out of shared office spaces. Although the matters were unrelated, the underlying facts were nearly identical. The licensees paid membership fees, which allowed them to use the workspace on an as-needed basis. They did not maintain dedicated offices within the shared space. 

Because of this business structure, the offices did not have proper signage identifying the companies, and the licensees’ licenses were not property displayed in the office space. The Commission found them each guilty and imposed fines. 

These cases serve as an important reminder that even if you are using office space on an as-needed basis, Alabama licenses law requirements regarding proper office identification and license display still apply. A flexible workspace arrangement does not create a compliance exception. If you are considering or currently using a shared office environment, confirm that: (1) proper signage is in place; (2) licenses are displayed as required by law; and (3) your most current address is reported to AREC.  

Each of this month’s hearings reinforces a common theme: never let convenience override compliance. Whether you are purchasing property personally or structuring your business in a new workspace, careful attention to license law requirements is essential. 

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