Note: This article is intended for information only and is not intended as legal advice. No attorney-client relationship has been established. If you need legal advice, please contact a qualified attorney.

The Legal Line is a free resource available to Alabama REALTORS®. Below are some recent questions submitted and their responses. If these questions spark a question for you, please contact us!

Q1: If a buyer submits an offer on an old/ outdated Purchase Agreement, what’s the best way to handle it?

A1: First, remember that Alabama real estate license law requires all written offers to be submitted to the seller. After the seller has had an opportunity to review the offer, if they are interested in it, you should explain that the document on which the offer was submitted is outdated and therefore might not be legally sound. You should re-write the offer on a current Purchase Agreement and send it back to the buyer as a counter-offer.

Please note that AAR does not support the use of previous versions of the AAR Forms. After AAR updates a form, any previous versions should be considered obsolete and may not be used in transactions.

Q2: If I’m helping a prospective tenant find a rental property, do I have to have a written agreement with him/her?

A2: No, a written agreement isn’t required by Alabama license law or by NAR’s rules when working with a prospective tenant. That being said, AAR nonetheless recommends having a written agreement so the consumer understands what services you’ll be providing, their cost, etc.

Q3: If I am a listing agent and the seller completes a Property Condition Disclosure, does that mean I am legally required to provide it to every prospective buyer?

A3: Not necessarily – it depends on the seller’s wishes. If the seller would prefer that you only provide the Disclosure upon request, that is allowed.

Q4: Are the RECAD Brokerage Services Disclosure Form and Agency Disclosure Office Policy required for commercial transactions?

A4: It depends what type of consumer(s) you’re working with. If you’re working with a “corporation, nonprofit corporation, professional corporation, professional association, limited liability company, partnership, any partnership created under the Uniform Partnership Act, commencing at Section 10-8A-101, real estate investment trust, business trust, charitable trust, family trust, or any governmental entity,” then the RECAD documents aren’t required. (Ala. Code § 34-27-82(d)) If you’re working with an individual or any other type of consumer not contained in the above list, then the RECAD documents are required.