§ 34-27-2 — Definitions; Exemptions from Chapter

Alabama § 34-27-2

• Jurisdiction: Alabama
• Title 34: Professions and Businesses
• Ch. 27: Real Estate Brokers
• Art. 1: General Provisions

Text

(a) For purposes of Articles 1 and 2 of this chapter, the following terms have the following meanings:
(1) ASSOCIATE BROKER. Any broker other than a qualifying broker.
(2) BROKER. Any person licensed as a real estate broker under Articles 1 and 2 of this chapter.
(3) BUYER’S AGREEMENT. An agreement between a real estate company and a person through which the company agrees to assist the person with the purchase of real property in exchange for a fee, whether as a fiduciary or non-fiduciary.
(4) COMMISSION. The Alabama Real Estate Commission, except where the context requires that it means the fee paid to a broker or salesperson.
(5) COMMISSIONER. A member of the commission.
(6) COMPANY. Any sole proprietorship, corporation, partnership, branch office, or lawfully constituted business organization as the Legislature may provide for from time to time, which is licensed as a company under Articles 1 and 2 of this chapter.
(7) ENGAGE. Contractual relationships between a qualifying broker and an associate broker or salesperson licensed under him or her, whether the relationship is employer-employee, independent contractor, or otherwise.
(8) INACTIVE LICENSE. A license which is being held by the commission office by law, order of the commission, at the request of the licensee, or which is renewable but is not currently valid because of failure to renew.
(9) LICENSEE. Any broker, salesperson, or company.
(10) LICENSE PERIOD. That period of time beginning on October 1 of a year designated by the commission to be the first year of a license period and ending on midnight September 30 of the year designated by the commission as the final year of that license period.
(11) LISTING AGREEMENT. An agreement between a company and an owner wherein the company agrees to assist the owner in the sale of the owner’s real property in exchange for a fee, whether as a fiduciary or non-fiduciary. The term includes an agreement giving the company the right to list or market the owner’s real property upon the owner’s future decision to sell the property.
(12) PERSON. A natural person.
(13) PLACE OF BUSINESS.
a. A licensed broker living in a rural area of this state who operates from his or her home, provided that he or she sets up and maintains an office for the conduct of the real estate business, which shall not be used for living purposes or occupancy other than the conduct of the real estate business. The office shall be used by the broker only and not as a place of business from which any additional licensee operates under his or her license. The office shall have a separate business telephone, separate entrance, and be properly identified as a real estate office.
b. All licensees located within the city limits or police jurisdiction of a municipality shall operate from a separate office located in the city limits or police jurisdiction. The office shall have a business telephone, meet all other regulations of the Real Estate Commission, and be properly identified as a real estate office. Hardship cases may be subject to waiver of this regulation upon application and approval by the commission.
c. All business records and files shall be kept at the place of business as required by law or Real Estate Commission rules.
(14) PRINCIPAL BROKER. As used in other states, the term has the same meaning as “qualifying broker” in this state.
(15) QUALIFYING BROKER. A broker under whom a sole proprietorship, corporation, partnership, branch office, or lawfully constituted business organization as the Legislature may from time to time provide is licensed, or a broker licensed as a company to do business as a sole proprietorship who is responsible for supervising the acts of the company or proprietorship and all real estate licensees licensed therewith.
(16) RECOVERY FUND. The Alabama Real Estate Recovery Fund.
(17) SALESPERSON. Any person licensed as a real estate salesperson under Articles 1 and 2 of this chapter.
(18) TEAM. Two or more licensees within the same company who work together to provide services for which a license is required and who hold themselves out to the public as a distinct group within the company.
(b) The licensing requirements of Articles 1 and 2 of this chapter shall not apply to any of the following persons and transactions:
(1) Any owner in the managing of, or in consummating a real estate transaction involving, his or her own real estate or the real estate of his or her spouse, child, or parent.
(2) An attorney-at-law performing his or her duties as an attorney-at-law.
(3) Persons acting without compensation and in good faith under a duly executed power of attorney authorizing the consummation of a real estate transaction.
(4) Persons or a state or federally chartered financial institution acting as a receiver, trustee, administrator, executor, or guardian; or acting under a court order or under authority of a trust instrument or will.
(5) Public officers performing their official duties.
(6) Persons performing general clerical or administrative duties for a broker so long as the person does not physically show listed property.
(7) Persons acting as the manager for an apartment building or complex. However, this exception shall not apply to a person acting as an on-site manager of a condominium building or complex.
(8) Persons licensed as time-share sellers under Article 3 of this chapter performing an act consistent with that article.
(9) Transactions involving the sale, lease, or transfer of cemetery lots.

Legislative History

(Acts 1951, No. 422, p. 745, §3; Acts 1963, No. 290, p. 734, §1; Acts 1971, No. 2485, p. 3966, §3; Acts 1971, 3rd Ex. Sess., No. 310, p. 4599, §1; Acts 1975, No. 563, p. 1276, §1; Acts 1982, No. 82-231, p. 282, §1; Acts 1983, No. 83-516, p. 781, §1; Acts 1984, No. 84-282, p. 472, §1; Acts 1985, No. 85-750, §1; Acts 1989, No. 89-284, p. 447, §3; Acts 1992, No. 92-177, p. 305, §3; Acts 1996, No. 96-791, p. 1471, §1; Act 2003-298, p. 701, §1; Act 2008-141, p. 214, §3; Act 2025-380, §1.)