Alabama guide

Mandatory Buyer Brokerage Agreement in Alabama Post-NAR Settlement

Q: Will I have to pay my agent's fee out of my own pocket?

It depends on the deal. Since Alabama MLS rules changed, sellers are no longer required to offer a set buyer-agent commission upfront. In many transactions, sellers still agree to cover the buyer's agent fee as part of negotiations. Your buyer agreement spells out what you'd owe if the seller doesn't cover it, so you'll know your worst-case cost before making any offers.

Q: What's the RECAD form my agent mentioned?

RECAD stands for Real Estate Brokerage Services Disclosure. It's a form required under Alabama's BRRETA law that explains exactly how your agent represents you — are they working only for you, only for the seller, or for both parties? Your agent is required to give it to you, and the relationship it describes must match your signed buyer agreement.

Q: Does this rule apply to all agents in Alabama, or just REALTORS?

The written agreement requirement is tied to MLS membership and the NAR settlement — so it directly applies to agents who are NAR members or whose brokerage participates in an Alabama MLS. In practice, this covers the vast majority of licensed agents you'll encounter. Alabama's BRRETA and AREC rules also independently require written agency agreements for buyer representation.

Since August 17, 2024, your real estate agent in Alabama must have you sign a written buyer agreement before they can show you any homes.

TL;DR

Since August 17, 2024, your real estate agent in Alabama must have you sign a written buyer agreement before they can show you any homes. The agreement spells out exactly how much they'll be paid and what they'll do for you. This is a new national rule — it's designed to make sure you understand the costs upfront, before you fall in love with a house.

Before you start — 8 things to know

Before an Alabama agent can show you a single home, you must sign a written buyer representation agreement. This became a hard requirement on August 17, 2024, as part of a national settlement involving (the National Association of REALTORS).
The agreement must clearly state how much your agent will be paid — no vague language allowed. You'll know the exact compensation figure before you ever step inside a property.
Your agent will also give you a form called the (Real Estate Brokerage Services Disclosure), which explains the different ways an agent can represent you in Alabama. The signed buyer agreement and the RECAD must match — if they say different things about the relationship, that's a legal compliance problem for the agent.
Alabama law ( — the Brokerage Relationships in Real Estate Transactions Act) governs the duties your agent owes you. Signing a buyer agreement is what officially triggers those duties, including loyalty, confidentiality, and working in your best interest.
The agreement covers a specific time period and geographic area — for example, it might cover 90 days and a list of counties. Read those details carefully before signing so you know what you're committing to.
Most Alabama agents use the standard Exclusive Buyer Agency Agreement form from the (Alabama Real Estate Commission)-regulated system, provided by the Alabama Association of REALTORS. You're allowed to ask for a copy to review before your first meeting.
Alabama (Multiple Listing Service) rules no longer allow a listing agent to advertise a set buyer-agent commission on the MLS. That means your agent's pay is negotiated deal-by-deal — sometimes the seller covers it, sometimes you do, sometimes it's split. Your agreement defines what you owe if the seller doesn't cover it.
You'll have this signing conversation in a buyer consultation — a meeting before any tours. Think of it like a job interview for your agent. Use it to ask about their experience, what services they'll provide, and how they get paid.

The timeline — step by step

Schedule a buyer consultation with an agent before looking at any homes. This is now required in Alabama — agents cannot legally show you a property without a signed agreement in place.
At the consultation, your agent gives you the form explaining how they represent you. Read it before signing — it describes whether they work only for you, only for the seller, or for both.
Review and sign the written buyer representation agreement. This locks in the agent's compensation terms, the duration of the relationship, and what types of properties or areas are covered. Alabama law () requires these terms to be clearly stated.
Once signed, your agent can now show you homes, access listings on your behalf, and negotiate offers. Their legal duties to you — including loyalty and confidentiality — are now active.
When you make an offer, your agent's compensation is negotiated as part of that transaction. If the seller agrees to cover the buyer-agent fee, you may owe nothing directly. If not, you and your agent will work out how it's paid based on your agreement.
At closing, your agent's compensation is paid according to the terms you agreed to at the start. No surprises — the amount was locked in before you ever toured a home.

Common questions

Can I just browse homes with an agent without signing anything first?

No — not anymore in Alabama. Since August 17, 2024, agents must have a signed written buyer agreement before showing you any property. This is a national rule now enforced by Alabama organizations. If an agent skips this step, they're out of compliance.

Does signing a buyer agreement mean I'm stuck with that agent forever?

No. The agreement covers a specific time period — often 30 to 90 days — and a defined area or property type. After it expires, you can work with someone else. You can also negotiate a shorter term or an exit clause before signing. Read the duration and termination sections carefully.

Will I have to pay my agent's fee out of my own pocket?

It depends on the deal. Since Alabama rules changed, sellers are no longer required to offer a set buyer-agent commission upfront. In many transactions, sellers still agree to cover the buyer's agent fee as part of negotiations. Your buyer agreement spells out what you'd owe if the seller doesn't cover it, so you'll know your worst-case cost before making any offers.

What's the RECAD form my agent mentioned?

stands for Real Estate Brokerage Services Disclosure. It's a form required under Alabama's law that explains exactly how your agent represents you — are they working only for you, only for the seller, or for both parties? Your agent is required to give it to you, and the relationship it describes must match your signed buyer agreement.

What happens if the agent and I disagree on their compensation before we find a home?

This is exactly why the agreement exists — to set that expectation upfront. The compensation terms are locked in when you both sign. If you're not comfortable with the amount or structure, negotiate before signing, not after. rules require the terms to be specific, so vague language is not allowed.

Does this rule apply to all agents in Alabama, or just REALTORS?

The written agreement requirement is tied to membership and the settlement — so it directly applies to agents who are members or whose brokerage participates in an Alabama MLS. In practice, this covers the vast majority of licensed agents you'll encounter. Alabama's and rules also independently require written agency agreements for buyer representation.

Glossary

5 terms

BRRETA — Real Estate Brokerage Agreement: Alabama's law that spells out what duties your real-estate agent owes you and what disclosures must happen before they represent you.
RECAD — Real Estate Consumer's Agency and Disclosure: The form that lays out, in plain terms, the agency relationship between you and the agent — whether they represent you, the seller, or both.
AREC — Alabama Real Estate Commission: The state agency that licenses real-estate agents in Alabama and enforces the rules they have to follow.
NAR — National Association of Realtors: The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service: The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

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