HB382: What You Need to Know

Alabama House Bill 382 (HB382), also known as Act 2025-380, is a state law concerning real estate license law that went into effect on October 1, 2025. The bill updates and modernizes real estate regulations, increases the maximum fine for license law violations from $2,500 to $5,000, and implements an administrative process for handling bounced payments instead of considering them a violation – among other updates to license law.
Seen below for our information hub on HB382, with updates published by Alabama REALTORSĀ®.

Teams

Alabama license law will now include requirements regarding real estate teams. Ā Ā 

Limited Consensual Dual Agency

Limited Consensual Dual Agency will be eliminated and replaced with Dual Agency, which will have different requirements.

Transaction Brokers

The term ā€œtransaction brokerā€ will be replaced with the term ā€œtransaction facilitatorā€.

RECAD

The RECAD Brokerage Services Disclosure Form will be updated to align with the changes related to dual agency and transaction facilitators.

Out-of-State Co-Brokerage Agreements

Additional requirements and limitations regarding interstate co-brokerage agreements will be added to Alabama license law.

Any Office Location

As of 10/1/25, licensees will be able to use any office location of a company under which (s)he is licensed.

Bad Checks/ E-Payments

Submission of a bad check or a declined e-payment to AREC will no longer be considered a license law violation. Instead, AREC will have an administrative process to handle these issues.

Maximum Fine Amount:

The maximum fine amount for a license law violation will increase from $2,500 to $5,000.