What Buyers Should Know
Buying a home in Alabama is very much different than most other
states. Alabama is one of three “CAVEAT EMPTOR” states where the
responsibility to discover entirely falls upon the buyer. As caveat
emptor means buyer beware. Most states
are seller's disclosure states. In Alabama, sellers must disclose defects
that impact health and safety such as toxic mold or lead based paint. Alabama
sellers do not have to disclose any other defects outside of health and safety.
Choosing the right Realtor® to assist
you with purchasing property in Alabama is and should be a process of
education.
THERE ARE FOUR DIFFERENT
REAL ESTATE
BROKERAGE SERVICES
AVAILABLE IN
ALABAMA
Choose YOUR Level of Service:
Single Agent, Sub-Agent, Limited Consensual Dual Agent or Transaction
Broker
There are FOUR agency relationships
that can exist in Alabama between buyers and real estate licensees. Alabama law
requires the consumer to be informed of the differences in these four various
relationships that can exists. A form describing these relationships should be offered to you for your review.
Choosing a Single Agency
relationship gives you the best representation available. In a Single Agency
relationship, licensees may negotiate and provide confidential information
known such as association business and financials. A Sub Agency relationship only relates to the manner in which the
various members of the multiple listing service share listing information. In a Limited
Consensual Dual Agency relationship, a licensee can represent both the
seller and buyer as long as all parties agree to such in writing. We do
not ever recommend using the listing agent when making a purchase in Alabama
for their foremost responsibility is to sell the property. In a Transaction Broker relationship, no
confidential information can be disclosed by the licensee even if they have
such knowledge as homeowner's association financials or knowledge of defects in
the property. Unless health and
safety is involved, no disclosure can be given with this level of service.
In a Transaction Broker relationship, the licensee cannot negotiate on
your behalf or share any confidential information that may impact your purchase
decision unless health and safety is involved. We also do not recommend
this level of service for those reasons.
