ALABAMA REAL ESTATE AGENCY LAW CHANGES: WHAT YOU NEED TO KNOW
By Meredith Folger Amon
Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Folger Amon.
October 1st marks a significant change in Alabama real estate law. These updates affect how we, as licensed real estate advisors, handle agency relationships. If you’re buying or selling property on the Gulf Coast—whether it’s a waterfront estate on Ono Island or a condominium in Orange Beach—understanding these changes matters because they shape how your interests are represented in a transaction.
.gif)
Goodbye Limited Consensual Dual Agency
Until now, Alabama allowed “limited consensual dual agency.” This meant one licensee could represent both buyer and seller with the written consent of both parties, but with limited fiduciary duties. As of October 1st, that terminology and approach is gone. In its place, we now have:
-
Dual Agency
-
Designated Single Agency
These may sound similar, but they work in very different ways.
Dual Agency
Dual agency will now apply only when the same individual licensee represents both the buyer and the seller as an agent. If I am serving as an agent for both parties in a single transaction, I must have written permission—via the new Dual Agency Agreement—before preparing or submitting an offer.
If one side chooses to work with me as a transaction facilitator (formerly called a transaction broker), dual agency doesn’t apply. It is strictly reserved for when one licensee represents both parties as agents.
Designated Single Agency
Designated single agency is different. It applies when two licensees under the same qualifying broker represent each side of the transaction. For example, if one agent in my office represents the seller and another agent under the same broker represents the buyer, both must be designated in writing by our broker as “single agents.” Each agent then owes fiduciary duties only to their client—not to both parties.
This simplifies things. Instead of the old “limited consensual dual agency” umbrella, the law now clearly separates single-agent representation under the same brokerage.
Transaction Broker Becomes Transaction Facilitator
Another shift is mostly in terminology. What we used to call a transaction broker will now be called a transaction facilitator. The duties remain the same—non-agency services without fiduciary obligations—but the wording on contracts and disclosure forms has been updated.
Sub Agency Eliminated
As of October 1st, sub agency is no longer recognized under Alabama law. This simplifies the list of representation types we can legally provide and eliminates outdated practices.
Forms and Disclosures
These changes mean new forms. The RECAD Brokerage Services Disclosure, company agency policies, and purchase agreement disclosures have all been updated to reflect the new terminology. Instead of listing the brokerage name, the updated forms now specifically identify the licensee working with the client.
Search Coastal Alabama Homes and Real Estate For Sale, $300,000 - $400,000
What This Means for You
For buyers and sellers, the biggest takeaway is clarity. Representation is now more straightforward:
-
If you work with me as your agent, I owe you fiduciary duties.
-
If I represent both buyer and seller, we must all sign a dual agency agreement.
-
If two agents under the same broker represent both sides, each will be designated as a single agent.
-
If you prefer a non-agency relationship, I can serve as a transaction facilitator.
My Perspective
After years of working in luxury real estate—from Colorado to the Gulf Coast—I see these changes as a positive step. They simplify what was often confusing language and make it easier for buyers and sellers to understand exactly how they’re represented. In practice, this means smoother transactions, more transparency, and clearer expectations.
If you’re considering buying or selling along the Gulf Coast, from Ono Island to Gulf Shores, I’ll guide you through these updates so you feel confident every step of the way.
Alabama Agency Law Changes: Consumer FAQ
Effective October 1, 2025
1) What changed on October 1?
Alabama retired “limited consensual dual agency” and replaced it with dual agency and designated single agency. The term transaction broker changed to transaction facilitator, and sub agency was eliminated.
2) What is dual agency now?
Dual agency applies only when the same individual licensee represents both buyer and seller as an agent in the same transaction. Written permission (a Dual Agency Agreement) is required before an offer is prepared or submitted.
3) What is designated single agency?
Designated single agency applies when two different licensees under the same qualifying broker represent each side as agents. The broker designates each licensee in writing; each owes fiduciary duties only to their own client.
4) What is a transaction facilitator?
A transaction facilitator (formerly “transaction broker”) provides non-agency services without fiduciary duties. This role is neutral—helping with paperwork and logistics—while you make your own decisions.
5) How do I know which relationship I have?
You’ll receive a Brokerage Services Disclosure (RECAD) at first substantial contact and see agency disclosure language in the purchase agreement. These forms now identify the licensee, not just the company.
6) When do I sign a Dual Agency Agreement?
Only if one licensee will represent both sides as an agent—and it must be signed before your offer is drafted or presented.
7) Can I refuse dual agency?
Yes. If either party declines, you have options: one side may choose transaction facilitator services, or one party can work with a different licensee.
8) What happened to sub agency?
It’s no longer recognized in Alabama. You will choose among single-agent representation, dual agency (rare), or transaction facilitator services.
9) Why do the forms list licensees instead of companies?
The updated law prioritizes clarity about who is representing you day-to-day. Your qualifying broker still supervises, but disclosure now names the actual licensee working with you.
10) Does this change my protections as a client?
No—if you hire an agent, you still receive fiduciary duties: loyalty, confidentiality, obedience, reasonable care, disclosure, and accounting. In dual agency, those duties are limited and balanced between both clients. In transaction facilitator, there is no fiduciary duty.
11) I started a deal before October 1. Do I need new forms?
Generally, fully executed agreements before the effective date can proceed on the old forms. If terms weren’t finalized until after October 1, updated disclosures/agreements are required. (When in doubt, I’ll review and advise.)
12) Which option is right for me?
Most consumers prefer single-agent representation (me as your agent) for clear advocacy. Designated single agency is common when the other party is represented by another agent in my brokerage. Dual agency is allowed but uncommon. Transaction facilitator fits clients who want neutral assistance.
Meredith Folger Amon
Gulf Coast Expert Real Estate Advisor, Licensed in Alabama and Florida
Specializing in Ono Island and Coastal Alabama real estate
#searchthegulf #meredithfolger #becausewelivehere When it comes to finding the home of your dreams in a fast-paced market, knowing about new listings as soon as they are available is part of our competitive advantage.Sign up to see new listings in an area or specific community. Contact Meredith with any questions you may have.Ask A Question or Sign Up To See New Real Estate Listings Before Your Competition
Have questions about Alabama’s new agency rules?
I’m happy to walk you through dual agency, designated single agency, and your best path forward on the Gulf Coast.
- Buying or selling on Ono Island, Orange Beach, or 30A-adjacent markets
- Choosing the right representation (agent vs. facilitator)
- Reviewing offers and disclosures for compliance
Guided by integrity. Backed by experience. — Meredith Folger Amon, Licensed in Alabama & Florida
Leave A Comment