Alabama Administrative Code › Title 790 - ALABAMA REAL ESTATE COMMISSION › Chapter 790-X-3 - DISCIPLINARY ACTIONS › Section 790-X-3-.14 - Agency/Brokerage Office Policy

Current through Register Vol. 42, No. 9, June 28, 2024
(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.