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Alabama · Ala. Code §§34-27-80–34-27-88Alabama agency disclosure and brokerage agreements: transaction facilitator by default

In Alabama a licensee is a transaction facilitator, not an agent, from the first contact until the broker signs a written agency agreement with the consumer (Ala. Code §34-27-82(b)). The licensee gives the consumer the commission's written disclosure form describing the types of brokerage service before providing any brokerage service, including showing a property to a buyer, with the company's services and how it is paid (§34-27-82(c), (h)). A written brokerage agreement isn't needed to show a property, but is required before listing a property or submitting an offer for compensation (§34-27-82(e)). Every offer to purchase displays a representation clause stating whether each licensee is an agent, a dual agent or a transaction facilitator (§34-27-82(i)). Funds held for others, such as earnest money, go into a separate federally insured account at a financial institution in Alabama, with records kept three years, and a listing agreement needs a fixed expiration date (§34-27-36(a)(8), (24)).

The rules

  1. 1. Default (§34-27-82(b))

    Transaction facilitator until a signed agency agreement.

  2. 2. Disclosure (§34-27-82(c))

    Commission form before any brokerage service, including a showing.

  3. 3. Agreement (§34-27-82(e))

    Written agreement before listing or submitting an offer.

  4. 4. Offer (§34-27-82(i))

    Representation clause completed and initialed.

  5. 5. Trust funds (§34-27-36(a)(8))

    Separate insured account in Alabama; records three years.

What the TC can do

  • Store the signed disclosure form and the brokerage agreement in the deal file before the offer.
  • Check that the representation clause on the offer is completed and initialed.
  • Log the earnest money deposit and the escrow account as a task with a receipt.

Questions about Alabama agency disclosure

Is an Alabama agent my agent from the first meeting?

No, the licensee is a transaction facilitator until a written agency agreement is signed (Ala. Code §34-27-82(b)).

Does a buyer need a written agreement to see a house in Alabama?

No, but a written brokerage agreement is required before an offer is submitted for compensation (Ala. Code §34-27-82(e)).

Related guides

Keep the disclosure, the brokerage agreement and the deposit receipt with the deal in ClosingCode.

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Source: Code of Alabama §§34-27-36(a)(8), (24) and 34-27-82 (alison.legislature.state.al.us, read October 28, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.