(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:

Attorney's Note

Under the Alabama Code, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
Class C misdemeanorup to 3 monthsup to $500
Violationup to 30 daysup to $200
For details, see Ala. Code § 13A-5-7

Terms Used In Alabama Code 8-42-2

  • Contract: A legal written agreement that becomes binding when signed.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • following: means next after. See Alabama Code 1-1-1
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • property: includes both real and personal property. See Alabama Code 1-1-1
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • real property: includes lands, tenements and hereditaments. See Alabama Code 1-1-1
  • writing: includes typewriting and printing on paper. See Alabama Code 1-1-1
(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.
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