§ 8-42-2 — Assignment of Equitable Interest in Single-Family Residential Property; Disclosure Requirements

Alabama § 8-42-2

• Jurisdiction: Alabama
• Title 8: Commercial Law and Consumer Protection
• Ch. 42: Residential Real Estate Transactions

Text

(a) A person may acquire an equitable interest in a single-family residential property as the buyer under a contract for the purchase and sale of the property and then may assign or offer to assign the interest for a fee if the buyer discloses in writing all of the following:
(1) To any potential subsequent purchaser or assignee, the nature of the buyer’s equitable interest.
(2) To the seller of the property, the buyer’s intent to market its equitable interest prior to commencing any marketing of the property.
(3) To the seller of the property, the effective date of any assignment of the buyer’s interest to a subsequent purchaser of the property at least three business days prior to the effective date of any assignment.
(b) Written disclosure under subsection (a) shall be required for the intent to market and transfer an equitable interest in residential real property, as limited by subsection (d), whether by assignment, novation, or other similar method of transferring interest in real property.
(c)(1) A violation of this section is a Class C misdemeanor.
(2) In addition to criminal penalties, a person violating this section may be liable to the person to whom disclosure is required in an amount equal to three times the fee or amount received by the buyer pursuant to the assignment.
(d) This section shall only apply to transactions involving single-family residential property and shall not apply to any other property.
(e) This section shall not infringe on the right of the parties to otherwise agree by contract.

Legislative History

(Act 2023-201, §2.)