agency
RECAD (Real Estate Consumer's Agency and Disclosure Act)
Article 4 of Alabama's license law, which replaces common-law agency duties with statutory ones. As amended effective October 1, 2025, a licensee may act as a single agent (buyer's or seller's agent), a dual agent with the informed written consent of all parties, or a transaction facilitator. At initial contact, and until a written bilateral agency agreement is signed, the licensee is considered a transaction facilitator, not an agent. Agency cannot be implied by conduct.
- Exam tip
- 'Absent a written agreement, an Alabama licensee is presumed to be...' a transaction facilitator. Distractors are 'subagent of the seller' or 'buyer's agent' by implied agency.
- Example
- An agent shows a caller three homes and shares comparable sales, but nothing is signed. She is a transaction facilitator and owes no loyalty or advocacy until a written agency agreement exists.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23