Alabama Agency Relationships and RECAD
Alabama brokerage relationships are governed by the Real Estate Consumers Agency and Disclosure Act (RECAD). 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, subagency, dual agency, and transaction brokerage. 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.