Understanding Caveat Emptor

 Alabama is Different than most other States…. I can’t say for sure but based on my research, the only states that are still caveat emptor states are Virginia, Arkansas, and Alabama. When a person buys real estate in these three states, they need to fully understand it is their responsibility to make sure they know what they’re getting, that it’s in good condition and works properly. When the buyer does his due diligence to have the property inspected, their legal rights remain in place after closing should some latent structural defect appear. If a buyer elects not to have the proper inspection done, closes on the transaction and then a latent structural defect appears and the buyer sues for damages; numerous Supreme Court cases have ruled in favor of the seller and stated caveat emptor; the buyer is responsibility to inspect the property prior to purchase.


This is a topic I try to talk about in every class I teach because it is the most important and the least understood law. I intentionally try to scare real estate agents to get them to understand the importance of the law and the effects it has on people buying real estate in Alabama. Today I will tell you how to see the law as it is written, disclose the other states that have the same law, and explain the dangers and remedies associated with caveat emptor.

Caveat Emptor is the law in Alabama…..

The Alabama Supreme Court has held caveat emptor to be the law in a consistent line of cases. Everyone should be on notice that there is no warranty which comes with the sale of a used home.

Real estate agents were taught when completing their educational requirements to get their license that caveat emptor is a Latin [Read more…]

About the Alabama Real Estate Institute

The Alabama Real Estate Institute – A Complete Real Estate School!

ARELLO is the Association of Real Estate License Law Officials made up of jurisdictions (countries and states) that regulate the sale and leasing of real estate.

Real Estate Training Specialists

Alabama Real Estate Institute is licensed through the  Alabama Real Estate Commission to provide various types of educational needs to all licensees in Alabama as well as out-of-state licensees desiring to become licensed in Alabama. Our Staff of Instructors are prominent figures in the real estate industry that have years of actual experience. Our guest speakers are leaders within their industry that are considered to be ranked in the top of their field. It is our goal to become “The Educational Source” for all licensees practicing real estate in Alabama.

The Alabama Real Estate Institute provides Alabama Real Estate Commission approved education courses in Real Estate Salesperson Pre License, Real Estate Salesperson Post License, Broker Pre license, Reciprocal Sales license, Reciprocal Broker license, Training Classes, Training Boot Camps, Continuing Education courses (CE), Productivity Coaching and Motivational Speakers for specialized events.

We offer one of the largest selections of CE classes in Alabama. Distance Learning Courses, more commonly called Online Courses or Internet Courses can be accessed online by clicking one of the links on this page. The Alabama Real Estate Institute also offers CE classes in various classroom settings state-wide.

We hope you will select Alabama Real Estate Institute as your Real Estate School of choice!

Has your group or office considered a classroom based continuing education trip along with a beach vacation for the families? We can schedule classes for a large group.

For more information or to arrange a classroom training for your group or office in your home town please contact:

James Anderson, CDEI, GRI, CDPE
School Administrator
Alabama Real Estate Institute, LLC

Please see the sidebar for our contact information!

Alabama Real Estate Salesperson Prelicense Course


The 60-Hour Prelicnse Course is a prerequisite to sitting for the Alabama State Exam. Upon completion of this course and successfully completing a final exam with a passing score of 75 or above will be issued credits with the Alabama Real Estate Commission and AMP (testing firm) which will qualify a person to sit for the State Exam. Upon passing the State Exam with a score of 70 or better will be issued a temporary salesperson license. Alabama Real Estate Commission has approved this course to be taught by the Alabama Real Estate Institute an Alabama Real Estate School.

Sign up for 60-Hour Salesperson Prelicense Course now!

Learning Objectives

  • Learn various terms associated with real estate.
  • Learn about persons and transactions exempt from licensing requirements.
  • Understand the structure and function of the Alabama Real Estate Commission.
  • Learn the quorum rules and regulations for the Alabama Real Estate Commission.
  • Learn about and understand the requirements for a receiving and maintaining a license.
  • Understand the examination process.
  • Learn about temporary license issuance and requirements for a reciprocal license.
  • Learn about out-of-state co-brokerage agreement as stated in the administrative code.
  • Understand the duties and responsibilities of a qualifying broker.
  • Learn about renewal and Continuing Education Requirements.
  • Understand the process for examination and licensure.
  • Learn about rules and regulations governing real estate schools, instructors and courses.
  • Understand the Continuing Education requirements (including course content) and exemptions pertaining to Continuing Education.
  • Understand Prelicense and Post License Course requirements.
  • Be aware of student participation standards in Real Estate Courses and approval of Distance Education Courses.
  • Know the purpose of the recovery fund.
  • Be aware of the fees paid to the fund, notification of legal action and payment from the fund.
  • Learn when licensees are not covered by the fund.
  • Understand the difference between the Recovery Fund and Errors and Omissions Insurance.
  • Learn the disciplinary action procedure.
  • Learn the appeals and the appeal process.
  • Understand deposit of funds, estimated closing statement, probable cause determination, hearings, and office inspections.

Learning Strategies:

  • We encourage classroom participation to ensure a more complete understanding of the subject matter.
  • Dividing the class into work groups for discussing and answering quizzes; then the correct answers are given to entire class.
  • Each segment begins with a quiz to allow the student to realize their knowledge base of the topic to be discussed and to peak their interest.
  • PowerPoint presentations are used to capture attention, create more excitement and enthusiasm, and make the learning process more retainable.
  • Handouts, examples, illustrations, books, manuals, and pertinent information are given to each student for study guides and future reference.

Sign up for 60-Hour Salesperson Prelicense Course now!