If you are working with a Realtor in Alabama, your agent should talk about RECAD. What does it mean? Basically it is required by Alabama law to inform you the consumer that there are different ways a Realtor can work with you. The following is a detailed explanation of the different ways.
Alabama Real Estate Agency Disclosure (RECAD)
Alabama law requires you, the consumer, to be informed about the types of services which real estate licensees may perform. The purpose of this disclosure is to give you a summary of these services.
Alabama Real Estate Agency Disclosure (RECAD)
Rule 790-X-3-.13(1)
Real Estate Brokerage Services Disclosure
A SINGLE AGENT is a licensee who represents only one party in a sale. That is, a single agent represents his or her client. The client may be either the seller or the buyer. A single agent must be completely loyal and faithful to the client. - A SUB-AGENT is another agent/licensee who also represents only one party in a sale. A sub-agent helps the agent represent the same client. The client may be either the seller or the buyer. A sub-agent must be completely faithful to the client.
- A LIMITED CONSENSUAL DUAL AGENT is a licensee for both the buyer and the seller. This may only be done with the written, informed consent of all parties. This type of agent must also be loyal and faithful to the client, except where the duties owed to the clients conflict with one another.
- A TRANSACTION BROKER assists one or more parties, who are customers, in a sale. A transaction broker is not an agent and does not perform the same services as an agent.
- Alabama law imposes the following obligations on all real estate licensees to all parties, no matter what their relationship:
- · To provide services honestly and in good faith;
- · To exercise reasonable care and skill;
- · To keep confidential any information gained in confidence, unless disclosure is required by law or duty to a client, the information becomes public knowledge or disclosure is authorized in writing;
- · Present all offers promptly to the seller; Answer your questions completely and accurately.
- Further, even if you are working with a licensee who is not your agent,there are many things that the licensee may do to assist you. Some examples are:
- Provide information about the properties;
- Show properties;
- Assist in making a written offer;
- Provide information on financing.
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR “®” logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
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