HB 230 Alabama House · 2025 Regular Session

Real estate transactions; required disclosures; description of brokerage services; terms of compensation; required written brokerage agreements under certain circumstances

HB 230 requires real estate brokers to provide written disclosures about services and compensation *before* showing a property to a potential buyer or seller. It clarifies that consumers do not need a written brokerage agreement just to view homes, but must sign one if the broker will list the property or submit an offer on their behalf. The bill updates Alabama’s rules to align with recent industry changes following a national settlement, ensuring disclosures cover specific services and compensation terms upfront. This directly affects homebuyers, sellers, and brokers during initial property showings and transaction setup.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Feb 2025

House Passage

Feb 2025

Senate Passage

Mar 2025

Signed into Law

Mar 2025

Introduced Feb 6, 2025 Signed Mar 19, 2025

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What changed between versions

Introduced → Enrolled · 4 edits · Mar 19, 2025

MODERATE

This bill was amended from introduction to enrollment, primarily updating formatting and bill numbers while retaining the core legislative intent. The substantive policy changes focus on clarifying real estate brokerage relationships and disclosure requirements in Alabama.

Scope change

No change in the bill's scope; it continues to apply to real estate transactions and licensees in Alabama.

TECHNICAL

Bill number changed from GMSP226-1 to GMSP226-2 to reflect the enrolled version.

DEFINITION

Updated definitions of key terms including 'Agency Agreement,' 'Brokerage Agreement,' 'Brokerage Service,' and 'Dual Agency' to clarify when written agreements are required and how different agency relationships are established.

Added new definitions for 'Limited Consensual Dual Agent,' 'Single Agent,' 'Buyer's Agent,' 'Seller's Agent,' 'Sub-Agent,' and 'Transaction Broker' to distinguish between different types of brokerage relationships.

REQUIREMENT

Clarified that consumers must receive disclosure forms before showing properties, but written brokerage agreements are only required when listing properties or submitting offers on behalf of consumers.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 5, 2025

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 266

upper

Feb 19, 2025

Upper · Passed

Reported Out of Committee Second House

upper

Feb 13, 2025

Upper · Passed

Pending Committee Action in Second House (Banking and Insurance)

upper

Feb 13, 2025

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 96

lower

Feb 12, 2025

Lower · Passed

Reported Out of Committee House of Origin

lower

Feb 6, 2025

Lower · Passed

Pending Committee Action in House of Origin (Commerce and Small Business)

lower

1 primary · 0 co-sponsors