Alabama § 34-27-81 - Definitions.

§ 34-27-81. Definitions.

As used in this article, the following words have the following meanings:

(1) AGENCY AGREEMENT. A written brokerage agreement between a company and a consumer which creates a fiduciary relationship between the company’s qualifying broker, including any licensees designated by the qualifying broker to sign the agreement, and the consumer, who becomes a client of the qualifying broker and designated licensee through the agreement.

(2) BROKER. Any person licensed as a real estate broker pursuant to Articles 1 and 2 of this chapter.

(3) BROKERAGE AGREEMENT. A specific written agreement between a company, as defined by Section 34-27-2, and a consumer which establishes a brokerage relationship. The brokerage agreement shall contain a statement of the terms and conditions of the brokerage services to be provided, including any compensation to be paid to or through the company. The term includes agency agreements and transaction facilitator agreements.

(4) BROKERAGE SERVICE. Any service, except for rental or property management services, provided by a broker or licensee to another person and includes all activities for which a real estate license is required under Articles 1 and 2 of this chapter.

(5) CLIENT. A person who has an agency agreement with a broker for brokerage service, whether he or she is the buyer or seller.

(6) CONSUMER. A person who obtains information, advice, or services concerning real estate from a real estate licensee.

(7) CUSTOMER. A person who is provided brokerage services by a licensee but who is not a client of the broker.

(8) DUAL AGENCY. An agency relationship in which a licensee, with the informed written consent of all parties to a transaction, represents both the seller and the buyer in the same real estate transaction once all parties have signed a consent agreement.

(9) INFORMED CONSENT. A consumer’s agreement to allow something to happen which is based upon full disclosure of facts needed to choose appropriate brokerage services.

(10) LICENSEE. Any broker, salesperson, or company, as defined in Section 34-27-2.

(11) MATERIAL FACT. A fact that is of significance to a reasonable party which affects the party’s decision to enter into a real estate contract.

(12) QUALIFYING BROKER. A broker under whom a corporation, partnership, branch office, or lawfully constituted business organization, as the Legislature may from time to time provide, is licensed, or a broker licensed to do business as a sole proprietorship who is responsible for supervising the acts of the company, or proprietorship and all real estate licensees licensed there.

(13) REAL ESTATE TRANSACTION. The purchase, sale, lease and rental, option, or exchange of an interest in real estate.

(14) SINGLE AGENT. A licensee who is engaged by and represents through an agency agreement only one party in a real estate transaction. A single agent may be only one of the following:

a. Buyer’s agent, which means a broker or licensee who is engaged by and represents only the buyer in a real estate transaction.

b. Seller’s agent, which means a broker or licensee who is engaged by and represents only the seller in a real estate transaction.

(15) TRANSACTION FACILITATOR. A licensee who assists one or more parties in a contemplated real estate transaction without being an agent or fiduciary or advocate for the interest of that party to a transaction. The term has the same meaning as “Transaction Broker” provided in Act 98-618.