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Category: CHAPTER 790-X-1

Rule 790-X-1-.05. Out-Of-State Co-Brokerage Agreement

(1) A licensed qualifying broker may enter into a co-brokerage agreement with a broker of another state, subject to the provisions of Code of Ala. 1975, § 34-27-3. The Alabama qualifying broker shall require a listing or joint listing of the property involved. The written co-brokerage agreements required by Code of Ala. 1975, § 34-27-3, shall specify all material terms of each agreement, including but not limited to its financial terms.

(2) The showing of property located in Alabama and negotiations pertaining thereto shall be supervised by the Alabama qualifying broker. In all advertising of real estate located in Alabama, the name of the Alabama qualifying broker shall appear.

(3) The Alabama qualifying broker shall be liable for all acts of the out-of-state broker, as well as for his own acts, arising from the execution of any co-brokerage agreement.

(4) The Alabama qualifying broker shall determine that the out-of-state broker is licensed as a broker in another state.

(5) All earnest money pertaining to a co-brokerage agreement must be held in escrow by the Alabama qualifying broker unless both the buyer and seller agree in writing to relieve the Alabama qualifying broker of this responsibility.





Author: Alabama Real Estate Commission

Statutory Authority: Code of Ala. 1975, §§ 34-27-3, 34-27-8.

History: Filed September 30, 1982. Amended: Filed August 15, 1985.

Amended: Published December 31, 2024; effective February 14, 2025.



  

    
  

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Welcome to the Alabama Real Estate Commission. The Commission has a long-standing tradition dating back to January 1, 1928 of serving the public through the licensing and regulating of our licensees. With over thirty team members working in areas of accounting, investigation, communications and public relations, information technology, licensing, and education, we ensure excellence in our profession by exhibiting stewardship, service, innovation and integrity in everything we do. The governing leadership of nine commissioners helps build a broad statewide perspective on everything we do. The Commission: Empowering, Connecting and Educating the great people of Alabama in all things Real Estate.

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