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.

AAR's Legal Line is here to help all AAR members with questions they may have about the AAR Statewide Legal Forms, Alabama license law, property law, and more. Below are some recent questions and answers that you may find helpful.

Q1: Are Estimated Closing Statements (“net sheets”) required for commercial transactions?

A1: No. Although you’re certainly allowed to provide a consumer in a commercial transaction with an Estimated Closing Statement, they’re only legally required for single-family residential sales.

Q2: I don’t like that the updated Agency Disclosure language for the Purchase Agreement identifies the listing and selling licensee, rather than the company. Can I change it?

A2: No. The text of the Agency Disclosure for the Purchase Agreement is mandated by Alabama license law (Ala. Code § 34-27-82(i)). You are not allowed to change any of the words in any way. However, you are allowed to add an additional paragraph (before or after the required language) that identifies the companies, if you would like.

Additionally, AAR has become aware that some company and Local Association forms do not currently contain the updated language. Please be advised that use of the outdated Agency Disclosure language is still a license law violation, even if you are using a company or Local Association form.

Q3: As a buyer’s agent or transaction facilitator, am I allowed to call the listing licensee to inquire about buyer broker compensation?

A3: Yes! That said, be aware that answers from the listing licensee can vary. The seller can agree to a specific amount of buyer broker compensation and authorize the listing licensee to communicate that offer, or they can instead state that requests will be considered on a case-by-case basis. If you’re a buyer’s licensee, it’s important to help the buyer understand that just because a seller doesn’t communicate a specific offer up front, does not mean that the seller will not ultimately agree to buyer broker compensation.

Q4: I am a listing agent for a given property. What if an unrepresented buyer does not want to sign a brokerage agreement with me but wants my help writing an offer to purchase?

A4: As an initial matter, if you represent the seller and the buyer does not have their own separate representation, the Alabama Real Estate Commission (AREC) will automatically consider you to be the buyer’s transaction facilitator (even without a signed transaction facilitator agreement). That being said, Alabama license law requires that you have a signed brokerage agreement in place before you can help complete/ submit an offer on a buyer’s behalf. So, if the prospective buyer wants your help with the offer, they are legally required to sign either an agency or transaction facilitator agreement with you.