AL HB357

Persons who hold only an equitable interest in residential real estate (a contractual right to purchase) must now be licensed by the Alabama Real Estate Commission to sell or assign that interest for a fee, unless selling to a spouse, child, or parent.

Licensees selling or assigning equitable interests must disclose in writing to potential buyers that they are not the deed holder and are only offering to sell their contractual interest.

Sellers must receive written disclosure of the licensee's intent to assign an equitable interest before the offer, and notification within three calendar days after any assignment occurs.

Equitable interest contracts must include a fixed closing date with no automatic extension provision.

Violations of these disclosure or contract requirements subject licensees to disciplinary action by the Commission, including fines ranging from $100 to $5,000, mandatory education courses, public reprimand, or license suspension/revocation.