You have questions, we have answers! The Legal Line is available for AAR members to ask our team of lawyers about Alabama license law, the Code of Ethics, AAR Forms, and basic real estate law. 

Q1: I am a listing broker who wants to hold an open house. Under NAR’s new rules, do I have to sign a written buyer agreement with every prospective buyer who attends?

A1: No. A written buyer agreement is only required if you plan on providing services to the prospective buyer, such as assisting with completing a purchase agreement, locating other properties, etc. If you want to provide services to the buyer, whether as a transaction broker or as an agent, a written buyer agreement is required. If you don’t plan on providing services, no agreement is required.

Q2: Are commercial agents required to follow NAR’s new rules?

A2: If a commercial property appears on an MLS (rather than a commercial exchange), then the property’s listing must be compliant with NAR’s new rules. However, NAR’s new rule requiring written buyer agreements does not apply to commercial transactions.

Q3: If I am working with a buyer who fails to deliver earnest money as promised in the Purchase Agreement, should I notify the Listing Broker?

A3: Yes. If the buyer does not deliver Earnest Money as required by the Purchase Agreement, under Alabama real estate license law, you should notify the Listing Broker.