790-X-3.14. Agency/Brokerage Office Policy.

(1) The Real Estate Consumers Agency and Disclosure Act (RECAD)
requires the qualifying broker to adopt and maintain an agency disclosure
office policy which sets out the types of brokerage services which his or her
company and licensees may offer or accept. The purpose of this rule is to
specify the form and content of the office policy. Any format for the office
policy is acceptable, including the use of devices such as loose leaf ring
notebooks.
(2) The qualifying broker shall provide all of his or her licensees with a copy
of the office policy. The qualifying broker shall explain the office policy to all
of his or her licensees at least once a year.
(3) The qualifying broker shall have all of his or her licensees sign a form
which acknowledges that he or she has received a copy and a satisfactory
explanation of the contents of the office policy.
(4) Under RECAD a qualifying broker may choose to offer the following
services to the public: single agency, subagency, limited consensual dual
agency, and transaction brokerage. Under RECAD a qualifying broker is not
limited to offering only one of these services and is not required to offer all of
these services.
(a) A single agent is engaged by and represents only one party in a real
estate transaction. Buyers' agents and sellers' agents are examples of single
agents. A written agency agreement with the client is required for a
qualifying broker and his or her licensees to become a single agent. All
qualifying brokers who offer single agency shall include a copy of their
agency agreement form(s) in their office policy.
(b) A subagent acts for and helps another broker in performing brokerage
services for a client. A subagent owes the same duties to the client (also
called the principal) which the agent owes to the client. A written agency
agreement with the client's qualifying broker is required for a qualifying
broker and his or her licensees to become a subagent. All qualifying brokers
who offer subagency shall obtain written permission from their client to do
so and shall include a copy of their subagency agreement form(s) in their
office policy.
(c) A limited consensual dual agent is an agent for both the buyer and the
seller. A limited consensual dual agent represents more than one client in a
transaction and owes the duties of agents set out in RECAD, except where
the duties to one client will violate the duties owed to other clients. A
written agreement is required for a qualifying broker and his or her
licensees to become a limited consensual dual agent. All qualifying brokers
who offer limited consensual dual agency shall include their limited consensual
dual agency agreement form(s) in their office policy.
(d) A transaction broker assists one or more parties without being an
agent or fiduciary or advocate for that party. A transaction broker may
provide brokerage services to consumers or customers with or without a
written agreement. All qualifying brokers who offer transaction broker
services by written agreement shall include their transaction brokerage
agreement form(s) in their office policy.
(5) All qualifying brokers shall include in their office policy a copy of the
disclosure form required by Alabama Real Estate Commission Rule
790-X-3-.13. Further, all qualifying brokers shall include a copy of their sales
contract forms containing the agency disclosure required to be in each offer to
purchase by Section 34-27-8 Code of Ala. 1975, as amended.

Statutory Authority:

Code of Ala. 1975, §§ 34-27-83, 34-27-87.

History:

New Rule: Filed January 25, 1996; effective
February 29, 1996. Amended: Filed August 3,
1998; effective September 7, 1998.