The Alabama Real Estate Commission (AREC) is considering a rule that would change how earnest money is handled when a transaction does not close. The Alabama Association of REALTORS® has heard concerns from brokers and agents across the state and submitted a comment letter to AREC. You can read it here.

The bottom line: the proposed rule would force brokers to make legal decisions in earnest money disputes, releasing funds to the buyer after 90 days regardless of what the contract says. Brokers should remain neutral. This rule takes that neutrality away and creates new legal risk for brokers and consumers alike.

AAR supports a clear, workable process for disputed earnest money. This proposal isn't it.

AREC meets to vote on this rule on Thursday, August 20th.

Please contact your AREC commissioner today and ask them to vote NO on the rule in its current form.