The short answer
Alabama regulates fee-bearing assignment directly — Act 2023-201, Ala. Code §§8-42-1 to 8-42-3. Three written disclosures, timed. Below is the plain-English version of the rules Wise Revival operates under in Alabama — assignment, disclosure, licensing, and marketing — taken from the statute material reviewed through our legal gate.
Assignment: what the law allows
- Alabama is one of the few states that regulates the assignment itself. The duties reach assignment, novation, and similar transfers of the equitable interest, on single-family residential property.
- Three written disclosures, each with its own clock — and the second one's clock is the trap.
Disclosure and licensing requirements
- Disclosure 1 — to the BUYER you assign to: written disclosure that what you hold is an equitable interest under a purchase contract, not legal title (§8-42-2(a)).
- Disclosure 2 — to the SELLER: written disclosure of your intent to market your equitable interest, made BEFORE you start marketing it. The clock is the trap — this duty triggers before marketing, not at assignment.
- Disclosure 3 — to the SELLER: written notice of the assignment's effective date, at least THREE BUSINESS DAYS before it takes effect.
Marketing: where operators get in trouble
- Penalties: a violation is a Class C misdemeanor, and the person owed a disclosure has a civil claim for THREE TIMES the assignment fee.
- Because the seller disclosure of intent is due before marketing begins, an Alabama deal is paperwork-first by law: disclose, then market, then give the timed notice of the assignment's effective date.
The Alabama operator checklist
- Written disclosure to the assignee: equitable interest under a contract, not legal title.
- Written disclosure to the seller of intent to market — before any marketing starts.
- Written notice to the seller of the assignment's effective date, at least three business days ahead.
- Remember the duties cover novation and similar transfers too, not just documents labeled 'assignment.'
Source: Ala. Code §§8-42-1 to 8-42-3 (Act 2023-201) — Mike legal gate for Wise Revival's Alabama build, 2026-10-20.
Common questions
Is wholesaling legal in Alabama?
Yes, and it is directly regulated: Act 2023-201 (Ala. Code §§8-42-1 to 8-42-3) imposes three timed, written disclosures on fee-bearing assignments of an equitable interest in a single-family home.
What are the three Alabama disclosures?
To the buyer you assign to: that you hold an equitable interest, not legal title. To the seller: your intent to market that interest, before marketing begins. And to the seller: the assignment's effective date, at least three business days before it takes effect.
What is the penalty for skipping an Alabama disclosure?
A violation is a Class C misdemeanor, and the person owed a disclosure has a civil claim for three times the assignment fee.
General information about how these rules generally work, not legal advice. Laws change; verify current law with a licensed attorney in your state.
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The wholesaling rules for all 9 states we operate in, on paper, statute-cited — the same material this page is built from.