(a)(1) The commission or its staff, on its own or on the verified complaint in writing of any person, may investigate the actions and records of a licensee. The commission may issue subpoenas and compel the testimony of witnesses and the production of records and documents during an investigation. If probable cause is found, a formal complaint shall be filed and the commission shall hold a hearing on the formal complaint.
(2)In each instance in which a licensee is found in violation of any of the conduct prohibited in subsection (b), the commission may impose any of the following penalties:
a. A fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000).
b. Require the licensee to complete an approved education course or courses in addition to completing
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(a)(1) The commission or its staff, on its own or on the verified complaint in writing of any person, may investigate the actions and records of a licensee. The commission may issue subpoenas and compel the testimony of witnesses and the production of records and documents during an investigation. If probable cause is found, a formal complaint shall be filed and the commission shall hold a hearing on the formal complaint.
(2) In each instance in which a licensee is found in violation of any of the conduct prohibited in subsection (b), the commission may impose any of the following penalties:
a. A fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000).
b. Require the licensee to complete an approved education course or courses in addition to completing the existing continuing education requirements.
c. Issue a public reprimand.
d. Revoke or suspend any or all licenses held under this chapter by the licensee. The suspension may continue until such time as the licensee has completed an approved continuing education course, has made restitution to accounts containing funds to be held for other parties, or both. The commission may also stay the revocation or suspension of a license and require completion of an approved education course, require the making of restitution to accounts containing funds to be held for other parties, or both.
(b) A licensee is prohibited from doing all of the following:
(1) Procuring or attempting to procure a license for himself or herself or another by fraud, misrepresentation, or deceit, or by making a material misstatement of fact in an application for a license.
(2) Engaging in misrepresentation or dishonest or fraudulent acts when selling, buying, trading, or renting real property of his or her own or of a spouse, child, or parent.
(3) Making a material misrepresentation or failing to disclose to a potential purchaser or lessee any latent structural defect or any other defect known to the licensee. Latent structural defects and other defects do not refer to trivial or insignificant defects but refer to those defects that would be a significant factor to a reasonable and prudent person in making a decision to purchase or lease.
(4) Making any false promises of a character likely to influence, persuade, or induce any person to enter into any contract or agreement.
(5) Pursuing a continued and flagrant course of misrepresentation or the making of false promises through agents or salespersons or any medium of advertising or otherwise.
(6) Publishing or causing to be published any advertisement that deceives or that is likely to deceive the public, or that in any manner tends to create a misleading impression.
(7) Acting for more than one party in a transaction without the knowledge and written consent of all parties for whom he or she acts.
(8)a. Failing, within a reasonable time, to properly account for or remit money coming into his or her possession which belongs to others, or commingling money belonging to others with his or her own funds.
b. Failing to deposit and account for at all times all funds belonging to, or being held for others, in a separate federally insured account or accounts in a financial institution located in Alabama.
c. Failing to keep for at least three years a complete record of funds belonging to others showing to whom the money belongs, date deposited, date of withdrawal, and other pertinent information.
(9) Placing a sign on any property offering it for sale, lease, or rent without the consent of the owner.
(10) Failing to voluntarily furnish a copy of each listing, contract, lease, and other document to each party executing the document with reasonable promptness.
(11) Paying any profit, compensation, commission, or fee to, or dividing any profit, compensation, commission, or fee with, anyone other than a licensee or multiple listing service. This subdivision shall not prevent an associate broker or salesperson from owning any lawfully constituted business organization, including, but not limited to, a corporation or limited liability company or limited liability corporation, for the purpose of receiving payments contemplated in this subsection. The business organization shall not be required to be licensed under this chapter, and shall not engage in any other activity requiring a real estate license.
(12) Paying or receiving any rebate from any person in a real estate transaction.
(13) Inducing any party to a contract to breach the contract for the purpose of substituting a new contract where the substitution is motivated by the personal gain of the licensee.
(14) If the licensee is a salesperson or associate broker, accepting a commission or other valuable consideration for performing any act for which a license is required from any person or company except his or her qualifying broker.
(15) If the licensee is a qualifying broker or company, allowing a salesperson or associate broker licensed under him or her to advertise himself or herself as a real estate agent without the name or trade name of the qualifying broker or company appearing prominently on the advertising; or if the licensee is a salesperson or associate broker, advertising himself or herself as a real estate agent without the name or trade name of the qualifying broker or company under whom the salesperson or associate broker is licensed appearing prominently on the advertising. For purposes of this subdivision, “prominently” means using a font size that is equal to or larger than any other name, text, or logo, other than terms like “for sale” or “for lease,” in the advertisement and situated and sized for the purpose of gaining the attention of consumers viewing the advertisement.
(16) Establishing an association, by employment or otherwise, with an unlicensed person who is expected or required to act as a licensee, or aiding, abetting, or conspiring with a person to circumvent the requirements of this chapter.
(17) Failing to disclose to an owner the licensee’s intention to acquire, directly or indirectly, an interest in property which he or she or his or her associates have been employed to sell.
(18) Violating or disregarding any provision of this chapter or any rule, regulation, or order of the commission.
(19) If a broker accepts a “net listing” agreement for sale of real property or any interest therein. A “net listing” agreement stipulates a net price to be received by the owner with the excess due to be received by the broker as his or her commission.
(20) Misrepresenting or failing to disclose to any lender, guaranteeing agency, or any other interested party, the true terms of a sale of real estate.
(21) Failing to inform the buyer or seller at the time an offer is presented that he or she will be expected to pay certain closing costs and the approximate amount of those costs.
(22)a. Having entered a plea of guilty or nolo contendere to, or having been found guilty of or convicted of, a felony or a crime involving moral turpitude.
b. Having a final money judgment rendered against him or her which results from an act or omission occurring in the pursuit of his or her real estate business or involves the goodwill of an existing real estate business.
(23) Offering free lots or conducting lotteries for the purpose of influencing a party to purchase or lease real estate.
(24) Failing to include a fixed date of expiration in a written listing agreement or failing to leave a copy of the agreement with the principal.
(25) Conduct that constitutes or demonstrates dishonest dealings, bad faith, or untrustworthiness.
(26) Acting negligently or incompetently in performing an act for which a person is required to hold a real estate license.
(27) Failing or refusing on demand to produce a document, book, or record in his or her possession concerning a real estate transaction conducted by him or her for inspection by the commission or its authorized personnel or representative.
(28) Failing within a reasonable time to provide information requested by the commission during an investigation or after a formal complaint has been filed.
(29) Failing without cause to surrender to the rightful owner, on demand, a document or instrument coming into his or her possession.
(30) If a qualifying broker or company, failing to keep in his, her, or its files copies of all contracts, leases, listings, and other records pertinent to real estate transactions for a period of three years.
(c) If it appears that a person or business entity has engaged, or is about to engage, in an act or practice constituting a violation of Article 1 or 2 of this chapter or any rule or order of the commission, the commission, through the Attorney General, may institute legal actions to enjoin the act or practice and to enforce compliance with Articles 1 and 2 of this chapter or any rule or order of the commission. To prevail in an action, it shall not be necessary to allege or prove either that an adequate remedy at law does not exist or that substantial or irreparable damage would result from the continued violation.
(d)(1) Notwithstanding any other provisions of law, the commission may issue an order requiring any accused person or business entity to cease and desist from engaging in activities requiring a license under this chapter when the accused person or business entity is not licensed under this chapter. The order shall be entered by the executive director after a finding of probable cause by the commission staff. The order shall become final 15 days after its service upon the accused, unless the accused requests a hearing before the commission. Upon hearing the case and finding violations, the commission may make the cease and desist order final and the commission may impose a fine for each violation in an amount consistent with the range of fines applicable to licensees, and in addition, may impose a fine in the amount of any gain or economic benefit that was derived from the violation, and in addition, may impose a fine in the amount of the commission’s costs incurred. Any fines not paid as ordered shall be enforceable in any court with competent jurisdiction and proper venue.
(2) Notwithstanding any other provisions of law, the commission may decline to issue an order requiring any accused person or business entity to cease and desist from engaging in activities requiring a license under this chapter when the accused person or business entity is not licensed under this chapter. In this instance, the commission shall proceed to give appropriate notice of the violations and hold a hearing. Upon hearing the case and finding violations, the commission may impose a fine for each violation in an amount consistent with the range of fines applicable to licensees, and in addition, may impose a fine in the amount of any gain or economic benefit that was derived from the violation, and in addition, may impose a fine in the amount of the commission’s costs incurred. Any fine or fines not paid as ordered shall be enforceable in any court with competent jurisdiction and proper venue.
(e) The commission shall notify the licensee and qualifying broker in writing regarding the complaint.
(f) The commission shall notify the complainant, licensee, and qualifying broker in writing regarding the disposition of the complaint.
(g) If a licensee presents a form of payment to the commission, or to any third party on the commission’s behalf, which is declined or rejected by a financial institution or merchant service company, the licensee shall have 30 days, upon electronic notification from the commission, to submit full and valid payment for the initial fee or fine and an additional fee for submitting the faulty payment, not to exceed the maximum amount allowed by Section 8-8-15. Failure to submit full and valid payment within 30 days of electronic notification by the commission shall result in the licensee’s license becoming inactive until the licensee submits full payment. Failure to submit full and valid payment within six months after electronic notification by the commission shall result in the licensee’s license lapsing.