HB382: What You Need to Know
Posted on 09/30/2025
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 REALTORS®.
Teams
Alabama license law will now include requirements regarding real estate teams.
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 “transaction broker” will be replaced with the term “transaction facilitator”.
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.
