Alabama Agency Law: Brokerage Relationships Explained

Alabama's agency law is governed by the Alabama Brokerage Relationships in Real Estate Transactions Act. Here's what the exam tests.

Agency Types in Alabama

Seller's Agent: Represents the seller with full fiduciary duties (OLDCAR). Must disclose known material facts to buyers.

Buyer's Agent: Represents the buyer with full fiduciary duties. Established by written buyer agency agreement.

Dual Agent (Limited Agent): Represents both buyer and seller in the same transaction. Requires: - Written informed consent from both parties - Cannot fully advocate for either party - Cannot disclose seller's minimum price or buyer's maximum price to the other party

Transaction Broker: Alabama permits a transaction broker (non-agency) relationship where the licensee facilitates the transaction without representing either party as an agent.

Disclosure Requirements

Alabama requires written brokerage relationship disclosure: - Before or at the time the licensee begins providing substantive services to a buyer or seller - Must identify the type of relationship and duties owed

The disclosure must be made in writing. Verbal disclosure is not sufficient.

Common Exam Questions

Q: An Alabama licensee works with a buyer to draft an offer without disclosing the agency relationship in writing. This is: A: A violation of Alabama's Brokerage Relationships Act — written disclosure is required before providing substantive services.

Q: An Alabama broker represents both buyer and seller in the same transaction. This is called: A: Dual agency (or limited agency) — requires written consent from both parties.

[Practice Alabama agency questions at CARealestate.com/states/alabama](https://carealestate.com/states/alabama)