Alabama Agency Relationships and RECAD
Alabama brokerage relationships are governed by the Real Estate Consumers Agency and Disclosure Act (RECAD) (Ala. Code § 34-27-80 et seq.; the statutory short title is the Real Estate Consumer's Agency and Disclosure Act; checked 2026-09-09). This chapter explains the relationships RECAD recognizes, the required brokerage services disclosure, and the timing of disclosure.
The Real Estate Consumers Agency and Disclosure Act
RECAD governs how Alabama licensees establish and disclose brokerage relationships. It recognizes single agency, dual agency, and transaction facilitation — sub-agency was removed from the statute and “transaction broker” renamed “transaction facilitator” by Act 2025-380, effective 2025-10-01 (checked 2026-09-09). Dual agency, representing both a buyer and seller as clients, is permitted only with the informed written consent of both parties, while a transaction broker assists the parties without advocating for either side.
Required Brokerage Services Disclosure
RECAD requires the licensee to provide a written disclosure of brokerage services at the first substantive contact with a consumer. This disclosure describes the available brokerage relationships and helps the consumer understand who, if anyone, the licensee represents before confidential information is shared.
Duties Owed to Consumers
Under RECAD, licensees owe certain duties to all consumers, such as honesty, disclosure of known adverse material facts about the property, and accounting for money and property. A licensee acting as a single agent owes the client additional duties of loyalty and confidentiality, while a transaction broker owes limited, defined duties.
State-specific details
State exam facts
- State regulator
- Alabama Real Estate Commission (AREC)
- Exam vendor
- PSI
- Prelicensing education
- 60 hours of approved salesperson pre-license education
How many prelicensing hours does Alabama require to become a real estate agent?
Alabama requires a 60-hour salesperson pre-license course approved by the Alabama Real Estate Commission before you sit for the state exam.
Who licenses real estate agents in Alabama?
The Alabama Real Estate Commission (AREC) licenses salespersons and brokers. AREC uses PSI to deliver the exam.
How is the Alabama salesperson exam structured?
The Alabama salesperson exam is delivered by PSI with a national portion and an Alabama state portion, scored separately; you must pass both. Confirm the current scored-question counts in the PSI Candidate Information Bulletin.
Sources: https://arec.alabama.gov/licensing/, https://www.psiexams.com/
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