Sen. Arthur Orr, R-Decatur, speaking to senators at the Senate Finance and Taxation Education Committee meeting on April 1, 2026, about the fiscal year 2027 Education Trust Fund budget in the Alabama Statehouse in Montgomery, Alabama. An Alabama House committee passed legislation he sponsored to more severely punishes people who commit real estate fraud. (Anna Barrett/Alabama Reflector)
An Alabama House committee Wednesday approved legislation to make real estate fraud a felony offense.
SB 292, sponsored by Sen. Arthur Orr, R-Decatur, directs the Alabama Securities Commission to adopt rules to process complaints of alleged real estate fraud and establishes felony charges for people who fraudulently sell real estate.
“I think the people need this,” Orr told the committee. “I think it will certainly make our body look good for the public.”
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The measure passed with no discussion.
The bill also authorizes the Commission to investigate complaints, subpoena documents, impose administrative fines and penalties for any violations, as well as order restitution and prosecute criminal violations.
The legislation upgrades the penalty for fraudulently selling or leasing property from a Class A misdemeanor, punishable by up to a year in jail and a $6,000 fine, to a Class D felony, punishable by up to five years in prison and a fine of $7,500.
The bill also creates the crime of aggravated fraudulent sale or lease of residential real property if a person knowingly advertises real estate for sale or rent without owning the land, and either receives money when advertising the land or if the property is owned by someone who is at least 70 years old. Individuals may be charged with a Class C felony, punishable by up to 10 years in prison and a fine of $15,000.
The bill passed the Senate on March 17. It moves to the House for further consideration.
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Author: Ralph Chapoco