Bill > HB586

This bill requires individuals who engage in "real estate wholesaling," which is the practice of assigning or marketing the assignment of an equitable interest (a right in a contract to purchase property) in residential property for profit, to obtain a license from the Alabama Real Estate Commission, unless the sale is to a spouse, child, or parent, or the property is in a predevelopment stage. It also mandates that real estate wholesalers and those making unsolicited offers to purchase property must provide specific disclosures to sellers, such as informing them that the seller of the equitable interest is not the deed holder and that they should seek advice from a licensed real estate agent or attorney. The Alabama Securities Commission is granted authority to enforce regulations related to investment-oriented real estate solicitations and unsolicited offers, with penalties for violations including significant fines. The bill aims to protect Alabama property owners, particularly seniors and vulnerable families, from predatory practices and financial losses by increasing transparency and oversight in these transactions, and it specifies that certain practices, like unfair service agreements that bind homeowners for extended periods, are unenforceable.