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AlabamaHB2252025 Regular SessionHouseWALLET

Alabama Real Estate Commission; prelicense, continuing education schools, instructors established and regulated; licenses, approvals established and further provided for; disciplinary authority, certain fees revised

Sponsored By: Rolanda Hollis (Democratic)

Enacted

Authorities, Boards, & Commissions

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 3 benefits, 7 costs, 5 mixed.

Training deadlines for new real estate brokers

Broker applicants without a current out-of-state broker license must complete an approved 60-hour basics course. They must pass the exam within 180 days after finishing that course. They must then finish a 60-hour professional development course within 90 days after passing. Applicants also need a high school diploma or equivalent and active salesperson licensure for 24 of the previous 36 months. The Alabama Real Estate Commission issues an original broker license or assigns inactive status when the application meets legal requirements.

Training deadlines for new real estate salespeople

Salesperson applicants without a current out-of-state salesperson license need a high school diploma or equivalent. They must finish a 60-hour basics course within 12 months and pass the exam within 180 days after course completion. They must finish a 60-hour professional development course within 90 days after the exam. Their temporary-license application must be dated within 90 days after that course and include an active Alabama qualifying broker's signed acceptance of responsibility or a request for inactive status. The Commission issues a temporary license or assigns inactive status when the application meets legal requirements.

Stricter standards for supervising real estate brokers

Qualifying brokers must make real estate their main business and be able to supervise salespeople or associate brokers full-time. They need active broker licensure or its equivalent for at least 24 of the past 36 months. Alabama brokers and out-of-state brokers not already serving as qualifying brokers must complete an approved 15-hour qualifying broker course. Out-of-state qualifying brokers or their equivalents seeking an Alabama reciprocal broker license must complete the required six-hour course.

Longer temporary licenses with work limits

Temporary salesperson licenses last 10 years, starting on the first day of the month after issuance. Licensed work requires guidance from a broker or a salesperson with at least five years of active salesperson licensure. The license becomes inactive six months after issuance, or after 90 days without the original-license application and required documents. Inactive holders must renew by the renewal deadline and reactivate before completing the original-license requirements. After more than three years inactive, they must retake the 60-hour salesperson professional development course before activation.

Shorter orientation for temporary real estate salespeople

Temporary salespeople seeking an original license must complete a Commission-prescribed 15-hour orientation in their real estate practice area. This replaces the prior 30-hour post-license course, cutting that requirement by 15 hours. Applicants must also submit a completed core skills checklist on the Commission's form, signed by their qualifying broker.

More company options for real estate agents

Real estate license holders can work for multiple companies when those companies share the same qualifying broker. They can also use any branch of a company under which they are licensed.

Course exemptions for some real estate renewals

Beginning October 1, 2028, first-time renewers of an original license are exempt from continuing education if licensed for no more than one year. Beginning the same date, inactive Alabama real estate licenses can be renewed without continuing-education courses.

Coursework before returning to real estate work

Beginning October 1, 2028, education requirements apply when an inactive original license is first activated during a license period. After three years or less inactive, brokers and salespeople must complete the current 15-hour continuing-education requirement. Those hours do not count toward the next renewal. After more than three years inactive, they must complete the 60-hour professional development course for their license type.

Coursework required for active real estate renewals

Active brokers and salespeople must complete at least 15 approved continuing-education hours for each two-year renewal. They must confirm completion on the Commission's website by September 30 of the final license year. Extra hours do not carry forward. Each approved course must provide at least 60 minutes of instruction; no more than six 60-minute courses can count. Completing the coursework counts even without a passing grade.

Higher fees for real estate licenses

Broker renewal fees rise from $75 to $95 for each year of the license period. Original and renewal salesperson and company license fees rise from $65 to $85 per year or partial year, as applicable. Once a salesperson, broker, or company license takes effect, its fees and Recovery Fund deposits cannot be refunded.

Notice rules when agents or brokers change

When a salesperson or associate broker transfers, the new qualifying broker must report that the applicant is honest, trustworthy, and reputable. The new broker must also accept legal responsibility for the license holder's actions. A broker ending responsibility must notify the license holder and place the license on inactive status, which bars licensed work. A company's or sole proprietorship's new qualifying broker must report the change to the Commission in writing within 30 days. Current Alabama license holders moving into Alabama as residents must report their address and other license-status changes within 10 days.

Late education renewals cost $200 each

Real estate education licenses or approvals renewed after September 30 carry a $200 late fee each. Holders have 12 months to renew, but cannot perform activities requiring the expired license or approval. After 12 months, they must meet all initial requirements again. The Commission can grant a hardship renewal of a lapsed license when all required fees are paid.

Fees and safeguards for real estate courses

The Commission can charge up to $100 per course-review application and up to $400 to certify live online prelicense courses. Live online continuing-education certification costs $400 for courses over three hours and $100 for courses of three hours or less. Certification review covers course goals, design, interaction, delivery, equipment, learning environment, student support, effectiveness, and learning assessments. The Commission may limit live online continuing-education classes to 150 students. It may accept independent private certification but cannot require it.

Later renewals but penalties for agents

Real estate license renewal forms and fees are due September 30 of the final license year, replacing August 31. Missing that deadline makes the license expire and become inactive on October 1. Filings after September 30 through September 30 of the next license period's first year require the license fee plus $150.

Temporary help after a company broker's loss

A company whose qualifying broker dies or becomes disabled can operate under a temporary qualifying broker license. That license lasts no more than six months after issuance. The temporary broker must be a broker or have held a salesperson license for at least one year before applying. Without a fully licensed replacement broker within six months, the company and all licenses under it become inactive. The Commission must give two weeks' prior electronic notice.

Sponsors & Cosponsors

Sponsor

  • Rolanda Hollis

    Democratic • House

Cosponsors

  • Member 100519

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 339 • No: 0

Senate vote • 5/6/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 950

Yes: 34 • No: 0

House vote • 4/17/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 905

Yes: 102 • No: 0

House vote • 4/17/2025

Motion to Adopt - Adopted Roll Call 904

Yes: 101 • No: 0

House vote • 4/17/2025

Third Reading in House of Origin

Yes: 102 • No: 0

Actions Timeline

  1. Enacted

    5/14/2025House

  2. Motion to Read a Third Time and Pass - Adopted Roll Call 950

    5/6/2025Senate

  3. Ready to Enroll

    5/6/2025House

  4. Enrolled

    5/6/2025House

  5. Signature Requested

    5/6/2025Senate

  6. Delivered to Governor

    5/6/2025House

  7. Read for the Second Time and placed on the Calendar

    4/24/2025Senate

  8. Reported Out of Committee Second House

    4/23/2025Senate

  9. Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development

    4/22/2025Senate

  10. Pending Committee Action in Second House

    4/22/2025Senate

  11. Third Reading in House of Origin

    4/17/2025House

  12. Hollis 1st Substitute Offered

    4/17/2025House

  13. Motion to Adopt - Adopted Roll Call 904

    4/17/2025House

  14. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 905

    4/17/2025House

  15. Engrossed

    4/17/2025House

  16. Reported Out of Committee House of Origin

    3/5/2025House

  17. Read for the Second Time and placed on the Calendar

    3/5/2025House

  18. Read for the first time and referred to the House Committee on Boards, Agencies and Commissions

    2/6/2025House

  19. Pending Committee Action in House of Origin

    2/6/2025House

Bill Text

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