Big News for Alabama Real Estate Agents

Big News for Alabama Real Estate Agents – HB230 is Here!

King Team, get ready! As we approach April 18th, a significant shift in Alabama real estate license law is about to take effect, and it’s one that we should all be aware of. Alabama has become the first in the country to push back against some of the recent changes stemming from the NAR lawsuits, and I couldn’t be prouder of our state for taking this proactive stance.

HB230: Giving Buyers More Freedom

For months, many of us have felt the pressure of requiring buyers to sign contracts, specifically the buyer agency disclosure form or the one-time showing agreement, before even stepping foot into a property. Well, the landscape is changing, and it’s a change that empowers both our agents and our clients. The core of this new law centers around not forcing consumers to sign a contract prior to viewing a home. This will give consumers more freedom in the home buying process and they can now explore properties without the immediate obligation of a signed agreement.

What This Means for You, Our Agents:

Let’s break down how this directly impacts your day-to-day activities:

RECAD Remains Essential: The Alabama Real Estate Consumer Agency Disclosure (RECAD) form has always been a crucial part of our initial interactions with clients, and that remains unchanged. You must still present the RECAD to all clients as early as reasonably possible. This document clearly outlines the different types of agency recognized in Alabama.
Introducing the New Two-Page RECAD: Here’s the key update. Due to HB230, we now have a requirement to disclose our internal agency disclosure office policy directly to consumers. As you all know from our annual RECAD trainings, ERA King has a firm policy against offering sub-agency. This policy must now be explicitly stated in writing to the consumer
Presentation of New RECAD Form is Required (Initially): While consumers are not required to sign either page of the RECAD, we strongly recommend obtaining their signatures before showing a home. This demonstrates that you have provided them with the necessary information and promotes transparency from the outset.
What if a Consumer Refuses to Sign? If a consumer declines to sign either the standard RECAD page or our office policy disclosure, simply note their refusal on the form and proceed with showing the home. This is a crucial point as you will not be prevented from showing a property if a buyer chooses not to sign the initial RECAD documentation.
Buyer Agency Agreement Still Necessary for Offers: It’s important to understand that while the upfront signing requirement is removed, a formal Buyer Agency Agreement must still be discussed with your client and signed by them before you present an offer on a property. This ensures that your representation and compensation are clearly defined when it comes time to make a move.

Why This is a Win-Win

This change is a significant win for both our agents and our clients:

For Clients: They gain the freedom to explore the market without feeling pressured to commit to an agency relationship before they are ready. This allows for a more comfortable and informed initial viewing process.
For Agents: While we still prioritize clear communication through the RECAD, we are no longer in the potentially awkward position of requiring a signed buyer agency agreement or one-time showing form before a client even sees a home. This can streamline the initial stages of the buyer relationship and build trust.

Big News for Alabama Real Estate Agents

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