What kind of brokerage relationship is automatically assumed under Alabama law?

In Alabama, a transaction brokerage relationship is automatically assumed under the law when real estate services are provided. This means that when a licensee is involved in a real estate transaction, they are acting as a facilitator for the transaction without establishing an agency relationship with either party (the buyer or the seller).

This form of brokerage allows the agent to assist both parties in the transaction while maintaining neutrality. The transaction broker does not represent either party in a fiduciary capacity, instead focusing on ensuring that the process runs smoothly and all parties have access to necessary information. This role is crucial for facilitating sales without taking sides, thus minimizing conflicts of interest and creating a more equitable environment for both buyers and sellers.

Understanding this foundational aspect of real estate practice in Alabama is essential for real estate professionals, as it sets the framework for how they engage with clients and the responsibilities they hold during transactions.