AL Amends Real Estate Brokerage Agreements Law

Alabama recently amended its Real Estate Consumer’s Agency and Disclosure Act (RECAD) to, among other things, not require that an agreement between the parties be signed before a real estate broker shows a property to a consumer.  However, an agreement must be signed before, on behalf of the consumer, a property is listed for sale or an offer on a property is submitted.

Provisions related to the written disclosure requirements also were amended. Among other things, the required written disclosure for consumers describing available brokerage services must be distributed before any real estate brokerage service is provided.  Real estate brokerage services include a broker showing a property to a prospective buyer, but do not include, as to prospective buyers, a seller’s agent conducting an open house.

This becomes effective on April 18, 2025.