Key Takeaways

  • Alabama recognizes single agency (representing one party only) and limited consensual dual agency
  • A single agent represents only the buyer OR the seller—never both simultaneously
  • Limited consensual dual agency requires written consent from both parties
  • All licensees have duties to ALL parties: honesty, disclosure of material facts, and timely presentation of offers
  • Licensees must disclose personal interests in transactions to all parties in writing
Last updated: January 2026

Alabama Agency Relationships

Alabama law defines the types of agency relationships that real estate licensees may have with consumers.

Types of Agency Relationships

Single Agency

A single agent is a licensee who represents only one party in a sale:

Single Agent RoleRepresents
Seller's agentSeller only
Buyer's agentBuyer only

Single agent duties include:

  • Undivided loyalty to the client
  • Confidentiality of client information
  • Full disclosure of material facts to client
  • Obedience to lawful instructions
  • Accounting for all funds
  • Reasonable care and diligence

Limited Consensual Dual Agency

Limited consensual dual agency occurs when:

  1. Two agents in the same brokerage represent the buyer and seller in the same transaction, OR
  2. One agent works for both the buyer and seller

Requirements for Dual Agency

RequirementDescription
Written consentBoth parties must consent in writing
DisclosureFull disclosure of the dual relationship
Confidentiality limitsCannot disclose price/terms one party will accept
Neutral positionMust remain impartial to both parties

Warning: Dual agency significantly limits what an agent can do for either party. Full disclosure is essential.

Duties to ALL Parties

Alabama law imposes certain duties on all licensees to all parties in a real estate transaction, regardless of who they represent:

Universal Duties

DutyDescription
ConfidentialityKeep confidential information gained in confidence (unless disclosure required by law, authorized in writing, or becomes public)
Timely presentationPresent all written offers in a timely and truthful manner
Personal interest disclosureDisclose in writing if acting for self, family, or entity with personal interest

Confidentiality Exceptions

Confidential information may be disclosed if:

  1. Disclosure required by law or duty to a client
  2. Information becomes public knowledge
  3. Disclosure is authorized in writing by the party

Personal Interest Disclosure

A licensee must provide timely written disclosure when acting on behalf of:

  • The licensee themselves
  • The licensee's immediate family
  • Any organization or entity in which the licensee has a personal interest

Key Rule: This disclosure must be provided to ALL parties to the transaction.

Compensation Disclosure

A licensee shall not accept compensation from more than one party without full written disclosure to all parties.

SituationRequirement
Receiving fee from one partyStandard—no special disclosure needed
Receiving fee from multiple partiesMust disclose to ALL parties in writing
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Alabama Agency Relationships
Test Your Knowledge

What type of agency exists when one licensee represents both the buyer and seller in the same transaction?

A
B
C
D
Test Your Knowledge

Which duty does a licensee owe to ALL parties in an Alabama real estate transaction?

A
B
C
D
Test Your Knowledge

When must a licensee disclose a personal interest in a transaction?

A
B
C
D