- RECAD
- (Real Estate
Consumer Agency Disclosure
Act)
REAL
ESTATE BROKERAGE SERVICES
DISCLOSURE
Alabama law requires you, the consumer, to be
informed about the type of services which real
estate licensees may perform. The purpose of this
disclosure is to give you a summary of these
services.
A SINGLE AGENT
is a licensee who represents only one party in a
sale. That is, a single agent represents his or
her client. The client may be either the seller
or the buyer. A single agent must be completely
loyal and faithful to the client.
A SUB-AGENT is
another agent/licensee who also represents only
one party in a sale. A sub-agent helps the agent
represent the same client. The client may be
either the seller or the buyer. A sub-agent must
also be completely loyal and faithful to the
client.
A LIMITED CONSENSUAL
DUAL AGENT is a licensee for both the buyer and
the seller. This may onlybe done with the
written, informed consent of all parties. This
type of agent must also be loyal and faithful to
the client, except where the duties owed to the
clients conflict with one
another.
A TRANSACTION BROKER
assists one or more parties in a sale. A
transaction broker is not an agent and does not
have the same obligations as an agent. The
transaction broker and licensees working with
him or her perform the services set out in their
contract.
Alabama law imposes the following obligations
on ALL real estate licensees to all parties, no
matter their relationship:
- To provide
services honestly and in good
faith;
- To exercise
reasonable care and skill;
- To keep
confidential any information gained in
confidence, unless disclosure is required by law
or duty to a client, the information becomes
public knowledge, or disclosure is authorized in
writing;
- Present all
written offers promptly to the
seller;
- Answer your
questions completely and
accurately.
Further, even if you are working with a
licensee who is not your agent, there are many
things that the licensee may do to assist you, the
customer. Some examples are:
- Provide
information about
properties;
- Show
properties;
- Assist in making
a written offer;
- Provide
information on financing
- You should choose
which type of service you want from a
licensee, and sign a brokerage service
agreement. If you do not sign an
agreement, by law the licensee working with
you is a transaction broker.
The licensee's broker is
required by law to have on file an office policy
describing the company's brokerage services. You
should feel free to ask any questions you
have.
The Alabama Real Estate
Commission requires the real estate licensee to
sign, date, and provide you a copy of this form.
Your signature is not required by law or rule, but
would be appreciated.
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