Key Takeaways
- Alabama recognizes single agency (representing one party only) and limited consensual dual agency
- A single agent represents only the buyer OR the seller—never both simultaneously
- Limited consensual dual agency requires written consent from both parties
- All licensees have duties to ALL parties: honesty, disclosure of material facts, and timely presentation of offers
- Licensees must disclose personal interests in transactions to all parties in writing
Alabama Agency Relationships
Alabama law defines the types of agency relationships that real estate licensees may have with consumers.
Types of Agency Relationships
Single Agency
A single agent is a licensee who represents only one party in a sale:
| Single Agent Role | Represents |
|---|---|
| Seller's agent | Seller only |
| Buyer's agent | Buyer only |
Single agent duties include:
- Undivided loyalty to the client
- Confidentiality of client information
- Full disclosure of material facts to client
- Obedience to lawful instructions
- Accounting for all funds
- Reasonable care and diligence
Limited Consensual Dual Agency
Limited consensual dual agency occurs when:
- Two agents in the same brokerage represent the buyer and seller in the same transaction, OR
- One agent works for both the buyer and seller
Requirements for Dual Agency
| Requirement | Description |
|---|---|
| Written consent | Both parties must consent in writing |
| Disclosure | Full disclosure of the dual relationship |
| Confidentiality limits | Cannot disclose price/terms one party will accept |
| Neutral position | Must remain impartial to both parties |
Warning: Dual agency significantly limits what an agent can do for either party. Full disclosure is essential.
Duties to ALL Parties
Alabama law imposes certain duties on all licensees to all parties in a real estate transaction, regardless of who they represent:
Universal Duties
| Duty | Description |
|---|---|
| Confidentiality | Keep confidential information gained in confidence (unless disclosure required by law, authorized in writing, or becomes public) |
| Timely presentation | Present all written offers in a timely and truthful manner |
| Personal interest disclosure | Disclose in writing if acting for self, family, or entity with personal interest |
Confidentiality Exceptions
Confidential information may be disclosed if:
- Disclosure required by law or duty to a client
- Information becomes public knowledge
- Disclosure is authorized in writing by the party
Personal Interest Disclosure
A licensee must provide timely written disclosure when acting on behalf of:
- The licensee themselves
- The licensee's immediate family
- Any organization or entity in which the licensee has a personal interest
Key Rule: This disclosure must be provided to ALL parties to the transaction.
Compensation Disclosure
A licensee shall not accept compensation from more than one party without full written disclosure to all parties.
| Situation | Requirement |
|---|---|
| Receiving fee from one party | Standard—no special disclosure needed |
| Receiving fee from multiple parties | Must disclose to ALL parties in writing |
What type of agency exists when one licensee represents both the buyer and seller in the same transaction?
Which duty does a licensee owe to ALL parties in an Alabama real estate transaction?
When must a licensee disclose a personal interest in a transaction?