Attorneys are often involved in the negotiation and drafting of a commercial property sales contract. These attorneys prefer their own forms, and sometimes do not include the check-the-box agency disclosure form required by Section 34-27-8 Ala. Code in the contract form. Brokers realize that this is a requirement of the law, and ask that the attorney modify the contract to include the form. Sometimes, attorneys will simply refuse to do this. If this happens to you, just document your file about your unsuccessful efforts to have the clause included. This will be sufficient to keepyou out of trouble with us.

Despite a licensee's best efforts, sometimes one mistakenly believes he or she is dealing with an individual buyer. By this I mean an individual as opposed to somebody described in Section 34-27-82(d) Ala. Code. As you will remember this subsection says that a licensee need not provide a RECAD (Real Estate Brokerage Services) Form "...when engaged in transactions with any corporation, non-profit corporation, professional corporation, professional association, limited liability company, partnership, any partnership created under the Uniform Partnership Act (commencing at Section 10-8A-101), real estate investment trust, business trust, charitable trust, family trust, or any governmental entity in transactions involving real estate." In cases where you make this mistake, and it is late in the process, just do two things. First, present the form and explain your error.  Then document your file. If this is an isolated and honest mistake, you will have no problems from us.

What do you do when a consumer is presented the RECAD (Real Estate Brokerage Services Disclosure) form, but the consumer will not sign it? You should just date and sign it in the licensee signature place like you normally would, and note on the form that the consumer declined to sign it.

Alabama Real Estate Commission Rule 790-X-3-.04 requires estimated closing statements, commonly referred to as net sheets, to be furnished to sellers and buyers in single family residential transactions.  What happens if the property is currently a single family residence, but is being sold as a commercial property via the standard "subject to commercial rezoning" clause? A contract with this clause makes the property commercial property for purposes of this contract. In this situation the net sheets required by the rule need not be done.

Again, it should be noted that the information presented in the preceding article relates ONLY to people buying & selling houses in the state of ALABAMA and their agents.