The Alabama Real Estate Commission (AREC) gathered last week for its final meeting of 2024. Eight commissioners were present with Chairman McKinney absent. Commissioners received an update on license numbers and heard several noteworthy cases related to listing houses owned jointly after divorce. Continue reading for some takeaways from the meeting! 

Overall, licensee numbers are down after the 2024 renewal cycle, with over 6000 licenses remaining unrenewed. While 375 total new license applications were received in October, the number of inactive licenses rose from 9000 last year to 12,000 this year. However, commissioners received a positive report on AREC’s finances, as significant late renewal fees and fines brought in additional revenues. 

The proposed rule amendments and one proposed rule published in October received approval for final publication with some changes. As reported earlier this month, AAR provided positive comments praising AREC’s efforts as well as a few suggested edits on the proposed rules.  According to statements made at last week’s meeting, these edits were incorporated in the final rules approved at the meeting. The approved rules must now be published as final rules in Alabama’s Administrative Monthly publication. 

Two cases last week resulted in significant fines against licensees who only included one owner on listing agreements after the owners divorced. In both cases, the divorce settlement did not change ownership, and the licensees failed to verify ownership by reviewing the title or the settlement, which would have indicated ownership by the former spouses. While both licensees communicated with the former spouse and did not sell the property at issue, the failure to include the owner on the listing agreement was held to violate license law. 

In any situation, it is important to attempt to verify ownership, especially in divorce cases, but also in light of the ongoing and prevalent listing scams carried out by non-owner bad actors. 

The next meeting of the commission will take place on January 16 at 9 am in Montgomery.