Ala. Admin. Code r. 790-X-3-.14
Current through Register Vol. 43, No. 02, November 27, 2024
Section 790-X-3-.14 - Agency/Brokerage Office Policy(1) The Real Estate Consumers Agency and Disclosure Act (RECAD) requires the qualifying broker to adopt and maintain an agency disclosure office policy which sets out the types of brokerage services which his or her company and licensees may offer or accept. The purpose of this rule is to specify the form and content of the office policy. Any format for the office policy is acceptable, including the use of devices such as loose leaf ring notebooks.(2) The qualifying broker shall provide all of his or her licensees with a copy of the office policy. The qualifying broker shall explain the office policy to all of his or her licensees at least once a year.(3) The qualifying broker shall have all of his or her licensees sign a form which acknowledges that he or she has received a copy and a satisfactory explanation of the contents of the office policy.(4) Under RECAD a qualifying broker may choose to offer the following services to the public: single agency, subagency, limited consensual dual agency, and transaction brokerage. Under RECAD a qualifying broker is not limited to offering only one of these services and is not required to offer all of these services. (a) A single agent is engaged by and represents only one party in a real estate transaction. Buyers' agents and sellers' agents are examples of single agents. A written agency agreement with the client is required for a qualifying broker and his or her licensees to become a single agent. All qualifying brokers who offer single agency shall include a copy of their agency agreement form(s) in their office policy.(b) A subagent acts for and helps another broker in performing brokerage services fro a client. A subagent owes the same duties to the client (also called the principal) which the agent owes to the client. A written agency agreement with the client's qualifying broker is required for a qualifying broker and his or her licensees to become a subagent. All qualifying brokers who offer subagency shall obtain written permission from their client to do so and shall include a copy of their subagency agreement form(s) in their office policy.(c) A limited consensual dual agent is an agent for both the buyer and the seller. A limited consensual dual agent represents more than one client in a transaction and owes the duties of agents set out in RECAD, except where the duties to one client will violate the duties owed to other clients. A written agreement is required for a qualifying broker and his or her licensees to become a limited consensual dual agent. All qualifying brokers who offer limited consensual dual agency shall include their limited consensual dual agency agreement form(s) in their office policy.(d) A transaction broker assists one or more parties without being an agent or fiduciary or advocate for that party. A transaction broker may provide brokerage services to consumers or customers with or without a written agreement. All qualifying brokers who offer transaction broker services by written agreement shall include their transaction brokerage agreement form(s) in their office policy.(5) All qualifying brokers shall include in their office policy a copy of the disclosure form required by Alabama Real Estate Commission Rule 790-X-3-.13. Further, all qualifying brokers shall include a copy of their sales contract forms containing the agency disclosure required to be in each offer to purchase by Section 34-27-8Code of Ala. 1975, as amended. Author: Alabama Real Estate Commission
Ala. Admin. Code r. 790-X-3-.14
New Rule: Filed January 25, 1996; effective February 29, 1996. Amended: Filed August 3, 1998; effective September 7, 1998.Statutory Authority:Code of Ala. 1975, §§ 34-27-83, 34-27-87.