Confirmed real state statute: Alabama did NOT rely purely on the national NAR settlement/MLS rules — it passed its own law, Act 2025-59 (HB230), sponsored by Rep. Randall Shedd, passed the House 13-Feb-2025 and Senate 05-Mar-2025, signed by Gov. Kay Ivey on 19-Mar-2025, effective 18-Apr-2025. It amends Alabama's pre-existing 1996 Real Estate Consumers Agency and Disclosure Act (RECAD), codified at Code of Alabama 1975 §§ 34-27-81, 34-27-82, and 34-27-100. Rather than adopting the NAR settlement's approach of requiring a signed written buyer-broker agreement before any home tour, Alabama's law explicitly preserves the older, looser RECAD framework: a consumer/customer may NOT be required to sign a written brokerage agreement merely to have a licensee show them a property. Instead, before any brokerage service (including showing a property, but excluding a seller's agent hosting an open house), the licensee must give the consumer a written Brokerage Services Disclosure form (drafted uniformly by the Alabama Real Estate Commission) describing available service types and how the company/licensee is compensated -- signature is encouraged but not legally mandated. A signed written brokerage agreement only becomes mandatory before a licensee lists a property for sale or submits a purchase offer on a client's/customer's behalf for compensation. This makes Alabama's approach materially different from -- and in tension with -- the NAR settlement's nationwide MLS participation rule (which requires signed buyer agreements pre-touring); commentators (HousingWire, RISMedia) have noted the resulting legal ambiguity/friction between state law and NAR/MLS practice changes, and Mississippi and other states have since followed Alabama's model. AREC separately amended its implementing disclosure-form rule (790-X-3-.13), effective Feb 14, 2026, to align procedural details with the statute.
Alabama Act 2025-59 (House Bill 230), amending the Real Estate Consumers Agency and Disclosure Act (RECAD) — specifically Code of Alabama 1975 §§ 34-27-81, 34-27-82, and 34-27-100 — effective April 18, 2025 (30 days after Governor Kay Ivey signed it on March 19, 2025, per Section 2 of the Act). A related AREC implementing administrative rule on the disclosure form, Rule 790-X-3-.13, was separately amended effective February 14, 2026.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.