What is true about brokerage agreements in Alabama?
As you know, Alabama law requires real estate salespersons to be licensed under a qualifying broker. This means that most real estate companies have one or more salespersons, with each salesperson operating under a qualifying broker. At times, salespersons change companies and qualifying brokers. Below are some issues to consider before and after a salesperson transfers, including policies to adopt, records to maintain and a word of warning on breaking existing agency agreements for personal gain. Show Notice and Fee(Ala. Code § 34-27-34)
Agency Office Policy – Disclosure and Acknowledgement License law requires brokers to adopt a written office policy on the different types of brokerage service arrangements that the broker’s licensees may offer or accept. Qualifying brokers must provide his or her licensees with a copy of the policy and explain the policy to all licensees on a yearly basis. Each year, the licensees should sign a form that explains and acknowledges receipt of the policy. When new salespersons are employed, this disclosure must be provided and acknowledged. See Ala. Code § 34-27-83. Listings and Pending Sales One issue that may come up when salespersons change qualifying brokers is what to do with listings and pending sales. Here are some things to consider:
Records Maintained Records required to be maintained by the qualifying broker should be kept by the qualifying broker. Under Alabama license law and accompanying regulations, qualifying brokers must maintain certain records for three years. Records to be kept include “all contracts, leases, listings and other records pertinent to real estate transactions . . .”, as well as a copy of the estimated closing statement, or net sheet, when required to be provided, and records pertaining to trust funds. See Ala. Code § 34-36(a)(31); Ala. Admin. R. 790-x-3-.04; Ala. Code § 34-27-36(a)(8(c). Other records must be provided upon inspection by the Real Estate Commission. These include items such as closed transaction files, real estate licenses, the office policy on R.E.C.A.D. and all pending sales files. A more complete list can be found in Alabama Administrative Rule 790-x-3-.09. Rabbit Trails
Additional Materials Links to several additional articles are included below.
“Disclaimer: This article provides general information only and does not constitute legal advice. No attorney-client relationship is created by reading, viewing, opening, or other action related to this article. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Specific circumstances may change the applicable law or advice a competent individual would provide. In addition, this information is not meant to supplant or in any way replace Errors and Omissions Insurance or other insurance coverage. Mistakes may occasionally be made. Once notified, we will work diligently to correct the issue in a timely manner and mark any updated or changed articles accordingly.” Which is true regarding listing agreements in Alabama?Which is TRUE regarding listing agreements in Alabama? The answer is the listing agreement must include a definite expiration date. Agents are required to give a legible copy of any agreement to all parties to the agreement as soon as reasonably practical after it has been signed by all parties.
What is the primary purpose of a brokerage agreement?The agreement sets out the scope of broker's duties and buyer's obligations. However, the buyer is under no obligation to pay compensation to the broker. The agreement also absolves the buyer from the responsibility of paying a commission if another party (e.g., the seller) pays a commission to the broker.
Which of the following is a responsibility of the Alabama Real Estate Commission?To serve the public through the licensing and regulating of real estate licensees. To ensure excellence in the real estate profession.
Which of the following is true regarding the listing agreement?Which statement is TRUE of a listing agreement? The answer is it is an employment contract for the professional services of the broker. The listing is the broker's contract of employment by the seller.
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