2.2 Alabama Agency Relationships
Key Takeaways
- Current RECAD roles are single agent, dual agent, and transaction facilitator; subagency was removed effective October 1, 2025
- Dual agency means the same individual licensee represents both sides and requires prior written informed consent from all clients
- Separate licensees under one qualifying broker may be designated single agents for opposite parties; they are not dual agents merely because they share a company
- A transaction facilitator is not an agent or advocate but still owes every party the duties listed in Section 34-27-84
- An agency relationship requires a written bilateral agreement; otherwise transaction facilitation remains the default
The Three Current RECAD Roles
Effective October 1, 2025, Alabama Code §34-27-82 identifies three roles:
| Role | What it means |
|---|---|
| Single agent | Represents one client under a written bilateral agency agreement |
| Dual agent | The same individual licensee represents both buyer and seller, with prior written informed consent |
| Transaction facilitator | Assists one or more parties without acting as agent, fiduciary, or advocate |
Subagency was removed from the statute. At initial contact, and until a written bilateral agency agreement creates agency, the licensee is a transaction facilitator.
Single-agent duties
A single agent loyally represents the client's best interests, discloses material information to the client, and follows lawful obligations and instructions within the agency agreement. The agent also owes every party the universal duties in §34-27-84.
Transaction facilitator
A facilitator does not advocate for either side, but still must act honestly and in good faith, exercise reasonable skill and care, protect confidential information subject to statutory exceptions, account for property, and present written offers timely and truthfully when assisting negotiations.
Dual Agency vs Designated Single Agency
Dual agency occurs when the same individual licensee is an agent for both buyer and seller. It is allowed only with the prior written informed consent of all clients. Conflicting duties limit what the dual agent can advocate or disclose.
When separate licensees under the same qualifying broker have agency agreements with opposite parties, the qualifying broker may designate each licensee as a single agent for that licensee's client. The designation must be in writing.
Current-law trap: A designated single agent is not a dual agent. The qualifying broker and other licensees are not automatically treated as knowing confidential information about a party they do not represent.
| Fact pattern | Classification |
|---|---|
| One licensee represents buyer and seller | Dual agency; written informed consent required |
| Separate in-company licensees represent opposite parties | Designated single agents when properly designated |
| No written agency agreement | Transaction facilitator |
Duties Owed to Every Party
Section 34-27-84 requires all Alabama licensees to:
- Provide brokerage services honestly and in good faith.
- Exercise reasonable skill and care.
- Keep confidential information confidential unless law, written authorization, public knowledge, or a fiduciary duty permits disclosure.
- Account for property belonging to any party.
- Present written offers in a timely and truthful manner when assisting negotiations.
- Disclose in writing a personal interest when acting for self, immediate family, or an entity in which the licensee has an interest.
Agency adds loyalty and advocacy to these universal duties. Do not turn Alabama's caveat-emptor rules into a blanket claim that every licensee must volunteer every fact that might affect desirability; use the statutory duties, anti-misrepresentation rules, and any specific disclosure law in the question.
When does dual agency arise under current Alabama RECAD law?
What is the default role before an Alabama consumer signs a written bilateral agency agreement?
Two separate licensees under the same qualifying broker represent opposite parties. If properly designated, what are they?
Which duty applies to a transaction facilitator as well as an agent?