How many legal forms of agency relationships are permitted in Alabama?

In Alabama, real estate law recognizes four legal forms of agency relationships. These agency relationships establish the nature of the interaction between the client and the agent, outlining responsibilities, duties, and the extent of authority granted. The four recognized forms of agency include:

1. Single Agency: This occurs when a real estate agent represents only one party in a transaction, either the buyer or the seller, ensuring a fiduciary duty to that party.

2. Dual Agency: In this situation, a single agent represents both the buyer and the seller in the same transaction. This type of relationship can pose challenges, as the agent must balance the interests of both parties while adhering to real estate laws.

3. Designated Agency: This occurs within a firm where one agent represents the seller and another agent from the same firm represents the buyer, allowing for a more focused representation while still adhering to designated agency requirements.

4. Transactional Brokerage: This is a relatively neutral relationship where the agent acts as a facilitator between the buyer and seller without being an advocate for either party.

Understanding these forms of agency is crucial for agents to navigate their roles and responsibilities correctly within the framework of Alabama real estate transactions.