Live It Baldwin

What Buyers Should Know

What Buyers Should Know

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.

 

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