How Buyer's Agents Work Now: Buyer Agreements in Alabama

Updated October 2026

Buying your first home around Auburn comes with a stack of paperwork, and lately one more piece has joined the pile: the buyer agreement. If you've been wondering whether you even need a buyer's agent, and who ends up paying them, you're asking exactly the right questions.

Here's the short version. Using an agent is your choice. In Alabama, a licensee becomes your advocate only through a written agency agreement you both sign. And who pays your agent comes down to what that agreement says, plus whatever you negotiate with the seller.

The Bottom Line

• Hiring a buyer's agent is optional. If you don't sign an agency agreement, Alabama law treats the licensee helping you as a transaction facilitator, not your advocate.
• Alabama law says you can't be required to sign a brokerage agreement just to be shown a property. A written agreement is required before a licensee submits an offer for you for compensation.
• A national MLS rule that started August 17, 2024 requires an MLS Participant "working with" a buyer to enter into a written agreement with the buyer before a tour. It's a separate rule from Alabama law, subject to state and local laws and regulations.
• Your agreement spells out what you owe. A seller may agree to pay your agent, so read what happens if they pay less.
• Ask what relationship you're getting before you share your top price with anyone.

Do I need a buyer's agent in Alabama?

No. The National Association of REALTORS® says it plainly in its settlement FAQs: "As always, the choice of whether to use a real estate professional is up to the buyer." What changes with that choice is the kind of help you get.

Alabama's license law sorts the people who help you into relationships with very different duties. The Alabama Real Estate Commission's Real Estate Brokerage Services Disclosure form describes the two you're most likely to meet as a buyer:

• Single agent. Represents only one party in a sale. The form says the licensee "is obligated to advise and advocate for the best interests of his or her client" and "must be loyal and faithful to the client."
• Transaction facilitator. Assists one or more parties, who are customers, "without being the agent, fiduciary, or advocate of that party to the transaction."

The default is the part most first-time buyers miss. The same form says: "If you do not sign an agreement, by law the licensee working with you is a transaction facilitator." Alabama's statute, Ala. Code § 34-27-82, adds that an agency relationship "shall not be assumed, implied, or created without a written bilateral agency agreement signed by the licensee and the consumer." So touring a house, chatting with an agent, or signing a disclosure form doesn't make you anyone's client. A signed agency agreement does.

What every licensee owes you, and what only clients get

The Commission's form lists duties Alabama law (Ala. Code § 34-27-84) places on all licensees toward all parties, customers included:

• honesty and good faith
• reasonable care and skill
• keeping information given in confidence confidential, with listed exceptions
• presenting all written offers in a timely and truthful way
• disclosing any personal interest in writing

Clients get more. Under Ala. Code § 34-27-85, a licensee acting as your agent must "loyally represent the best interests of the client by placing the interests of the client ahead of the interests of any other party." That agent also has to disclose material facts you couldn't find through reasonable investigation and follow your lawful instructions within the agreement. A transaction facilitator doesn't owe you those duties.

My read: loyalty is the real dividing line. The Commission's form says a licensee who isn't your agent can still provide information about properties, show properties, help you make a written offer, and give financing information. What that licensee doesn't owe you is advocacy. The form describes a transaction facilitator as working "without being the agent, fiduciary, or advocate" of the people it assists, so don't count on one to push for your best price.

What's Alabama law, and what's a national rule?

The "now" in "how buyer's agents work now" comes from two different places. They were written by different bodies, and they don't say the same thing.

Alabama law changed twice in 2025

According to Alabama REALTORS®, Act 2025-59, covering the disclosure form and buyer agreements, took effect April 1, 2025. Act 2025-380 took effect October 1, 2025. That second act eliminated limited consensual dual agency, replaced it with dual agency under different requirements, and swapped the term "transaction broker" for "transaction facilitator."

Two lines from Alabama's amended license law, Ala. Code § 34-27-82(e) (as codified after Act 2025-380), matter most to buyers:

• "The consumer or customer may not be required to enter into a written brokerage agreement in order for a licensee to show a property to a consumer or customer."
• "A written brokerage agreement is required prior to a licensee either listing for sale or submitting an offer on a property on behalf of a consumer, customer, or client for compensation."

The license law's definitions section, Ala. Code § 34-27-2, defines a buyer's agreement as one where a company helps a person buy real property "in exchange for a fee, whether as a fiduciary or non-fiduciary." In plain English, a buyer agreement can make the licensee your agent, or it can set up a non-agency arrangement. The document tells you which.

The national MLS rule started in 2024

Separately, the National Association of REALTORS® explains in its written buyer agreements explainer: "As of August 17, 2024, an MLS Participant 'working with' a buyer is required to enter into a written agreement with the buyer prior to touring a home, including both in-person and live virtual tours." That rule came out of NAR's settlement. It's an MLS policy for MLS participants, not an Alabama statute, and NAR's FAQs note that "MLS policies and rules are subject to state and local laws and regulations."

How the two fit together

Put them side by side. Alabama says a buyer can't be required to sign a brokerage agreement just to be shown a property. The MLS rule says an agent working with a buyer needs a written agreement before a tour. How an agent handles both is a fair question to ask before your first showing, and my take is that a clear, unhurried answer tells you a lot about who you'd be working with.

When will I be asked to sign something?

Different documents show up at different moments, and they do different jobs. Nobody grows up dreaming about reading a brokerage agreement, I know. But it helps to know which piece of paper is which.

The disclosure form comes first, and it isn't a contract

Alabama law requires licensees to give you the brokerage services disclosure form "as soon as reasonably possible and before any confidential information is disclosed." It has to happen before any brokerage service, which includes showing you a property. A seller's agent holding an open house is the exception.

The form itself reads: "THIS IS PROVIDED FOR INFORMATION PURPOSES. THIS IS NOT A CONTRACT." Your signature line is marked "Acknowledgement for Receipt Purposes Only," and consumers aren't required by law to sign it. Before services begin, the company should also give you its written office policy, including general information on how the company and licensee are paid.

Open houses and talking with a listing agent

According to NAR's settlement FAQs, "You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services." No agreement is needed when an agent is only working for the seller, such as hosting an open house or giving an unrepresented buyer access to a home they've listed.

Tours, offers, and which rule applies

NAR's FAQs say an MLS participant "working with" a buyer can sign the agreement at any point, but no later than before the buyer tours a home. Touring means you or the agent entering the house, and live virtual tours count. Alabama's own written-agreement requirement kicks in at the offer stage.

Who pays the buyer's agent?

Your agreement decides what you owe. NAR's consumer guide to written buyer agreements says: "You are responsible for paying your real estate professional as outlined by your agreement." The same guide says you "can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent."

NAR's settlement FAQs list three ways the money can move: the listing agent can pay your agent, the seller can, or you can pay your agent directly. A seller may agree to offer compensation to your agent, but that offer can't be shared on an MLS. You can still accept seller concessions, such as help with your closing costs. And on the question "Does this mean buyer agents are working for free?" the FAQs answer in one word: "No."

What the agreement has to say about pay

NAR's FAQs say a written buyer agreement must include:

• "A specific and conspicuous disclosure of the amount or rate of compensation the agent will receive or how this amount will be determined."
• Compensation that is objective and "not open-ended."
• "A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer."
• "A conspicuous statement that agent fees and commissions are fully negotiable and not set by law."

Alabama law (Ala. Code § 34-27-81) separately requires a brokerage agreement to state its terms and conditions, "including any compensation to be paid to or through the company."

One more distinction worth holding onto: who pays doesn't decide who your agent represents. In Alabama, agency comes from a signed written agency agreement, not from whoever covers the fee.

What if the seller pays less than your agreement says?

Your agreement is where that answer lives. Find the clause on seller-paid compensation before you sign, and ask the agent to walk you through what you'd owe if a seller offers less, or nothing at all.

How agent pay can affect your cash to close

If you're using a VA loan, the U.S. Department of Veterans Affairs issued a circular on buyer-broker charges that took effect August 10, 2024 and says it stays valid until rescinded. As of October 2026, VA's list of current home loan circulars still shows Circular 26-24-14, with its August 2024 Change 1, as valid until rescinded. It lets veterans pay "reasonable and customary amounts for any buyer-broker charges," with conditions:

• "Buyer-broker charges are not included in the loan amount."
• Charges the veteran pays count when the lender decides whether the veteran has enough liquid assets to close.
• "VA does not treat the seller's payment of buyer-broker charges as a seller concession."
• "VA encourages Veterans to negotiate the amount to be paid to their buyer-broker, whether the Veteran or seller pays the amount."

For conventional and FHA loans, NAR's settlement FAQs (last updated September 5, 2024) report that "Fannie Mae and Freddie Mac published explicit confirmations that commissions for buyer agents paid by the seller would not count against the buyer." The FAQs also say "Fannie Mae, Freddie Mac, and the FHA do not allow commissions to be added to the balance of the mortgage." Your lender has the final word on your own loan, so bring your buyer agreement into that conversation early.

If you're also lining up down payment help, my guide to Alabama first-time home buyer programs is a good companion to this one.

What to read before you sign

According to NAR's FAQs, NAR policy doesn't dictate the type of relationship, the services, the compensation, or the term of the agreement. Its own examples of a term are "one day, one month, one house, one zip code." Its written buyer agreements explainer adds that NAR doesn't dictate whether an agreement is exclusive or non-exclusive. Those are terms you and the agent work out.

Before you sign, read for:

• The relationship. Single agent, or transaction facilitator? The agreement should say.
• The term and scope. How long it lasts and which homes or areas it covers. If your search might stretch from Auburn to a lake house on Lake Martin, check that the geography matches your plans.
• Exclusive or non-exclusive. Whether you can work with more than one agent at once.
• Services. What the agent will actually do for you.
• Compensation. The amount or how it's set, who may pay it, and what happens if a seller pays less.
• Ending it. How either of you can end the agreement, and whether a carryover period applies.

Not every brokerage uses the same form or offers every option. Alabama law doesn't require a broker to offer every type of brokerage service, so ask what's on the table rather than assuming.

What if the listing agent, or my agent's brokerage, represents the seller?

The listing agent works for the seller. That agent isn't automatically yours, even if they're the one who unlocks the door. The Commission's disclosure form says "a licensee can also represent one party as an agent and serve as a transaction facilitator for the other party in the transaction." Alabama law also requires every offer to show which relationship each licensee has, with boxes such as "An agent of the seller" or "Assisting the buyer as a transaction facilitator."

Confidentiality is where this gets practical. Every licensee owes all parties a duty to keep information given in confidence confidential. That duty has exceptions under Ala. Code § 34-27-84, and one is when keeping quiet "violates a fiduciary duty to a client." My advice: before you tell a seller's agent your top number or how badly you want the house, ask what role they're playing in your deal.

Dual agency and designated single agency

Two relationships cover a single transaction with one brokerage on both sides. The Commission's form describes both:

• Dual agent. "A DUAL AGENT is a licensee, who is an individual, acting as an agent for both the buyer and the seller. This may only be done with the written, informed consent of all parties." That agent must be loyal to each client "except where the duties owed to the clients conflict with one another."
• Designated single agent. When two licensees under the same qualifying broker have separate agency agreements with different parties in the same deal, the broker can designate each as a single agent for their own client. "The designation must be in writing and done as soon as reasonably possible," and "a designated single agent is not a dual agent."

Alabama doesn't require a brokerage to offer dual agency, and it doesn't ban it. If you might want a home your agent's brokerage has listed, ask how they handle it before you fall in love with the kitchen.

Can I change agents or cancel a buyer agreement?

That depends on what you signed. NAR's written buyer agreements explainer says agreements may address "termination with cause and without cause by both the buyer and the MLS Participant." They may also include a carryover period, "where compensation may be owed to the MLS Participant if the buyer terminates the written buyer agreement and subsequently executes a purchase agreement within an agreed upon time following termination of the buyer agreement."

Those are terms people negotiate, not rights every agreement includes. Choosing a new agent doesn't by itself end an existing agreement or what you owe under it. If you've already signed something and you're unsure what it means for you, a real estate attorney is the right person to read it.

Questions to ask before you commit

Bring these to any agent you're interviewing. They're questions, not guaranteed answers, and a good agent will welcome every one.

1. What relationship are you offering me: single agent, designated single agent, dual agent, or transaction facilitator?
2. May I see your company's office policy, including how you and the company are paid?
3. Is this agreement for showings only, or for representation? What term and area does it cover, and is it exclusive?
4. What compensation does it state, and what happens if a seller pays less? Is there a carryover period?
5. How can either of us end the agreement?
6. If I want a home your brokerage has listed, will you be a designated single agent or a dual agent?

NAR's consumer advice sums it up: "When finding an agent to work with, ask questions about compensation and understand what services you are receiving."

If you're still sorting out where to look, my comparison of Auburn vs. Opelika and my first-time home buyer guide for Auburn pair well with this. For quick answers on the rest of the process, start with my Auburn home buyer FAQ.

Talk it through before you sign

I'm Amy Cotney, a REALTOR® and licensed real estate salesperson (Alabama license #108235) with Roots Real Estate - Investment Development in Auburn. You can learn more about me and how I work, or start a conversation on my contact page if you'd like to walk through relationship options and agreement terms before you commit to anything. I build strong relationships that lead to sold homes and happy buyers, through communication, not automation.

Sources

• National Association of REALTORS®, NAR Settlement FAQs (last updated September 5, 2024)
• National Association of REALTORS®, Written Buyer Agreements 101
• National Association of REALTORS®, Consumer Guide: Written Buyer Agreements
• Alabama Real Estate Commission, Real Estate Brokerage Services Disclosure form (RECAD form)
• Code of Alabama, § 34-27-82, Roles and Duties of Licensees; Written Disclosure Documents; Exceptions; Brokerage Agreements
• Code of Alabama, § 34-27-81, Definitions (including "brokerage agreement")
• Code of Alabama, § 34-27-84, Obligations of Licensees
• Code of Alabama, § 34-27-85, Services Licensees Required to Provide
• Code of Alabama, § 34-27-2, Definitions (including "buyer's agreement")
• Alabama Legislature, HB 382 enrolled text (Act 2025-380)
• Alabama REALTORS®, A Letter to the Membership on Act 2025-380
• U.S. Department of Veterans Affairs, Circular 26-24-14, Temporary Local Variance for Certain Buyer-Broker Charges (effective August 10, 2024)
• U.S. Department of Veterans Affairs, VA Home Loans circulars list (checked October 2026)