Alabama § 34-27-3 - Co-Brokerage Agreements.

§ 34-27-3. Co-Brokerage Agreements.

(a)(1) Co-brokerage agreements between a licensed principal broker of another state and licensed qualifying broker of this state are governed by this section.

(2) A licensed principal broker of another state may act as co-broker in a sale or lease transaction with a licensed qualifying broker of this state by executing a written agreement specifying each parcel of property covered by the agreement.

(3) A co-brokerage agreement is limited to three transactions per calendar year, per licensed out-of-state principal broker. A transaction may include multiple properties if the properties are part of the same portfolio.

(4) A licensed out-of-state principal broker shall not use a co-brokerage agreement to engage in transactions in Alabama totaling more than fifty million dollars ($50,000,000) in any calendar year.

(b) Whenever an Alabama qualifying broker enters into a co-brokerage agreement with a licensed out-of-state principal broker to perform any of the acts described in Section 34-27-30 in Alabama, the Alabama qualifying broker shall file with the commission a copy of each such written agreement not more than 10 days after the agreement is signed by all of the parties. By signing the agreement, the licensed out-of-state principal broker agrees to abide by Alabama law and the rules of the commission; and further agrees that civil actions may be commenced against him or her in any court of competent jurisdiction in any county of this state in which a claim may arise. Complaints against the licensed out-of-state principal broker related to the Alabama transaction governed by a co-brokerage agreement shall also be forwarded to the state governmental body with regulatory authority over the out-of-state principal broker’s license.

(c) All co-brokerage agreements with licensed out-of-state principal brokers for transactions occurring in Alabama shall include all of the following provisions and acknowledgments:

(1) A listing or joint listing of the property involved.

(2) A specification of all material terms, including, but not limited to, the financial terms.

(3) That an Alabama broker shall supervise the showing of property located in Alabama and any subsequent negotiations.

(4) That the name of the Alabama broker shall appear in all advertising of real property located in the state.

(5) That the Alabama broker shall verify that the licensed out-of-state broker is a licensed principal broker in another state.

(6) That any earnest money deposited pursuant to the agreement shall be held in escrow by the Alabama qualifying broker unless both the buyer and the seller agree in writing to relieve the Alabama qualifying broker of this responsibility.