The Alabama Real Estate Commission (“AREC”) held its fourth meeting of 2026 on April 23rd in Montgomery. The Commission noted that it issued 249 licenses in March. Additionally, the Commission conducted 33 company audits, two assistance visits to companies, and seven education audits in March. The meeting included several hearings and highlights from two hearings are included below.

In one case, a qualifying broker held two separate company licenses, one for a traditional sales company and another for commercial property management company. While the sales company properly renewed its license in 2024, the property management company did not complete its renewal. The Commission sent notice of the missed renewal, and the company later submitted its renewal but failed to pay the required activation fee. A second notice was issued, prompting the company to contact AREC without realizing the activation fee remained unpaid. During this same period, the company was audited. The audit revealed that from October through January, while the property management company’s license was inactive, it continued to conduct business. As a result, the property management company was found guilty of engaging in licensed activity without an active license and failing to maintain active status. Fines were imposed for both violations. This serves as an important reminder that renewal is not complete until every step is finished. It’s critical that every licensee verify that his/her license is fully renewed and active. Qualifying brokers should verify the status of all licenses that they hold, including company licenses, as well as the status of all licensees under them. 

In another case, a qualifying broker listed a property on behalf of an individual who was married but was in the process of divorce. The licensee executed a written listing agreement with that individual but only obtained verbal approval to list the property from the individual’s spouse. Despite not having all required signatures, the licensee proceeded to market the property as “Coming Soon.” When the licensee received an offer and presented it to the individual and their spouse, the spouse immediately objected, demanded the listing be removed, and refused to sign the listing agreement. The Commission found the licensee in violation of Alabama Code § 34-27-36(a)(26) for acting negligently by proceeding without proper authority to list the property. The licensee was ordered to pay a fine and complete both a broker management and a risk management continuing education course within 90 days. As a reminder, a licensee must obtain authorization to list a property from all property owners. Because a property owner can later deny giving verbal authorization, obtaining written authorization provides the best protection for the licensee.  

If you have questions about these topics and are an Alabama Association of REALTORS® member, please contact the Legal Line.