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HB 586

Alabama Real Estate Commission; license required for real estate wholesalers, real estate wholesalers and unsolicited real property solicitors must provide disclosures, Alabama Securities Commission, authorized to enforce, penalties imposed for violations

2026 Regular Session Introduced by Margie Wilcox

Alabama bill requiring real estate wholesalers to obtain licenses, provide consumer disclosures, and face penalties for violations under regulatory enforcement.

Third Reading in Second House
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Bill Summary · HB 586

Legislative bill overview

HB 586 requires real estate wholesalers and unsolicited property solicitors in Alabama to obtain licenses from the Alabama Real Estate Commission and provide specific disclosures to consumers. The bill grants the Alabama Securities Commission enforcement authority and establishes penalties for violations of these new requirements.

Why is this important

Real estate wholesaling—buying properties at discount and quickly reselling them for profit—operates in a gray area of current Alabama law with minimal consumer protections. This bill would bring wholesalers under regulatory oversight similar to traditional real estate agents, potentially protecting consumers from deceptive practices while affecting business operations in this sector.

Potential points of contention

  • Business impact: Requiring licensing and disclosures may increase compliance costs for wholesalers, potentially reducing the profitability of deals and affecting market participation
  • Regulatory scope: Defining "unsolicited real property solicitation" could be unclear, potentially capturing legitimate marketing practices alongside predatory ones
  • Enforcement ambiguity: Assigning enforcement to both the Real Estate Commission and Alabama Securities Commission creates potential jurisdictional overlap and confusion about which agency has primary authority

Compiled from official sources — confirm details with the bill’s official record.

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