QUICK SUMMARY
The short answer is no. Since April 18, 2025, Alabama law (Act 2025-59) says a real estate agent cannot require you to sign a buyer agreement just to show you a home. What the agent must do before a showing is hand you two documents: the state’s Real Estate Brokerage Services Disclosure form (most people call it the “RECAD form”) and the brokerage’s office policy, which explains how the company gets paid. A signed written agreement is required before an agent submits an offer for you or lists your home for sale. Until you sign one, the agent is legally a “transaction facilitator,” not your agent.
If you have bought a home in another state since 2024, this may surprise you. Many states now ask buyers to sign a contract before the first showing. Alabama went the other way. This guide from The Williams Group at Keller Williams Realty explains what the law says, what you will be asked to sign, and when. Last updated: September 2026.
Key Takeaways
1. In Alabama you cannot be required to sign a buyer agreement to tour a home. That has been state law since April 18, 2025.
2. Before a private showing, the agent must give you the RECAD Brokerage Services Disclosure form and the company’s Agency Disclosure Office Policy. Neither one is a contract.
3. A written brokerage agreement is required before an agent submits an offer for you or lists your home. It must spell out the services and the compensation.
4. With no signed agreement, the agent is a transaction facilitator by law. They can show homes and help with paperwork, but they do not advocate for you.
5. Agent compensation is negotiable. Ask how much, who pays it, and how long the agreement lasts before you sign.
What changed in Alabama, and why?
In August 2024, the National Association of REALTORS settlement changed how agents work with buyers across the country. One rule said REALTORS had to get a written buyer agreement before touring a home with a buyer. Many buyers did not like signing a contract with someone they had just met. The U.S. Department of Justice also raised concerns about it.
Alabama responded with House Bill 230. The Alabama Association of REALTORS backed it. The Legislature passed it, Governor Kay Ivey signed it in March 2025, and it took effect on April 18, 2025 as Act 2025-59. It amended the Real Estate Consumers Agency and Disclosure Act, the state law everyone calls RECAD. The key line says a consumer “may not be required to enter into a written brokerage agreement in order for a licensee to show a property.”
The law applies to every licensed agent in Alabama, not just REALTORS. Other states have since made their own rules. Mississippi passed a similar law in March 2026. Texas went the opposite direction: since January 2026, Texas agents need a written agreement before giving a buyer any real advice. So if you are moving to Alabama from Texas, Georgia, or Florida, expect the first meeting here to feel less formal.
What is the RECAD form, and why does the agent hand it to me first?
The Real Estate Brokerage Services Disclosure is a one-page form written by the Alabama Real Estate Commission. Every brokerage in the state must use the same one. The top of the form says it in plain words: “This is provided for information purposes. This is not a contract.”
The form explains the three ways an Alabama agent can work with you:
1. Single agent. The agent represents only you. They must put your interests ahead of anyone else’s, advise you, and advocate for you. This is what most people picture when they say “my agent.”
2. Dual agent. One agent represents both the buyer and the seller in the same sale. This is only allowed with written, informed consent from everyone.
3. Transaction facilitator. The agent helps you with the deal but is not your advocate. They can show you homes, give you property and financing information, and help write an offer. If you never sign an agreement, this is what the agent is by law.
The form also lists the duties every Alabama agent owes to everyone in a sale, whether or not you are their client: to act honestly and in good faith, to use reasonable care and skill, to keep confidential information confidential, to present all written offers promptly and truthfully, and to disclose in writing any personal interest they have in the property.
Two things to know about timing. First, the law says the agent must give you the form “as soon as reasonably possible” and before any brokerage service, including showing you a home. Second, an open house is the exception. A listing agent running an open house does not have to hand the form to every walk-in. If you then ask that agent for a private tour or advice, the form comes out.
Along with the RECAD form, the agent must give you their company’s Agency Disclosure Office Policy. This document is written by the brokerage. It tells you which of the three roles the company offers and gives general information on how the company and the agent get paid. You will usually be asked to sign both documents. Your signature only shows you received them. You can decline to sign, and the agent simply notes that.
Getting ready to buy in West Alabama or Greater Birmingham? Start with our Complete Guide for First-Time Home Buyers, or call or text 205-292-2108 (Tuscaloosa) or 205-292-7142 (Birmingham).
When do you have to sign a buyer agreement in Alabama?
Act 2025-59 sets two clear deadlines. A written brokerage agreement is required before an agent lists your home for sale and before an agent submits an offer on a home for you, if the agent will be paid for that work. The RECAD form repeats this in its own words: “A written agreement is required by law prior to a licensee listing a property on your behalf or submitting an offer on your behalf for compensation.”
Between the first showing and the first offer, the timing is up to you and the agent. Some buyers sign at the first meeting because they already know who they want to work with. Others tour a few homes first. Either way, the moment you are ready to write an offer, the agreement gets signed first. Do not be surprised if an agent asks for an agreement after showing you a handful of homes. The law lets buyers look before committing, but it does not require agents to keep working for free without limit.
One more rule from the same act: if an agent refers you to another agent for a fee, that referral agreement must be in writing.
What does an Alabama buyer agreement actually say?
The law requires the agreement to state the terms and conditions of the services and “any compensation to be paid to or through the company.” In practice, expect to see these items:
The role. Whether the agent will be your single agent (representing only you) or a transaction facilitator.
The term. How long it lasts and whether it covers one home, a certain area, or every home you look at.
The compensation. The amount or percentage, and who is expected to pay it. Since the 2024 settlement, the seller’s offer to pay the buyer’s agent is no longer posted on the MLS. Your agent’s fee is negotiated with you, and your offer can ask the seller to pay some or all of it. Compensation is always negotiable.
How it ends. The end date and any conditions for canceling early. Ask about this before you sign, not after.
Read the whole document. If a term is unclear, ask. A good agent will walk you through every line without pressure.
What happens if you never sign anything?
You can tour homes with an agent for a while with no agreement. During that time the agent is a transaction facilitator. That is fine for looking. It is a poor fit for negotiating. A transaction facilitator does not owe you loyalty or advocacy, so they cannot legally coach you on what to offer or how to counter. There are also things you should not tell an agent who is not your agent, such as the most you would pay. The general duty to keep confidences applies to everyone, but advocacy does not.
Once you find the house, the choice is simple: sign a buyer agreement and get full representation, or submit an offer with the agent acting as a facilitator. Either way, the agreement or the facilitator relationship must be in place before the offer goes in.
Six questions to ask before you sign
1. Will you be my single agent or a transaction facilitator?
2. How much is your compensation, and what happens if the seller will not pay it?
3. How long does this agreement last, and how do I cancel it?
4. Does it cover every home, or only homes you show me?
5. What happens if I buy a new-construction home or a for-sale-by-owner home?
6. What if I want to buy a home your brokerage has listed? (That is a dual agency question, and it needs your written consent.)
A local perspective from The Williams Group
The Williams Group serves buyers across Tuscaloosa, Northport, Lake Tuscaloosa and West Alabama, and across the Birmingham suburbs from Vestavia Hills and Hoover to Trussville and McCalla. In both markets, the first meeting with a TWG agent starts the way Alabama law requires: the RECAD form and our office policy come out before the first showing, and the roles are explained in plain English. The buyer agreement comes when you are ready, and always before an offer.
A few local situations where the timing matters more than people expect:
New construction. The friendly person in the model home in Northport or Trussville represents the builder, not you. If you want your own agent, many builders require that agent to register with you on your first visit. Sort out your agreement before you tour new homes. Our new construction guide covers this.
UA parents buying a condo. Many parents shop from out of state and only visit campus for a weekend. Signing before the trip means your agent can write an offer the same day you find the right unit. See our guide for UA parents buying near campus.
Relocation buyers. If your employer is moving you to MBUSI in Vance, UA, DCH, UAB or a Birmingham office, your relocation company may have its own referral rules. Alabama now requires those referral agreements to be in writing. Our relocation guide explains how the process works here.
Sellers, too. The same act requires a written listing agreement before your home goes on the market. If you are thinking about selling, our post on what it costs to sell a house in Alabama covers the fee side.
Want to tour a few homes before you decide who to work with? That is your right in Alabama, and we are glad to do it. Get pre-approved first, then call or text 205-292-2108 (West Alabama) or 205-292-7142 (Greater Birmingham).
Frequently asked questions
Is the RECAD form a contract?
No. The Real Estate Brokerage Services Disclosure is an information form written by the Alabama Real Estate Commission. Signing it only confirms you received it. It does not obligate you to work with the agent or pay anything.
Can I tour homes with more than one agent in Alabama?
Yes, as long as you have not signed an exclusive buyer agreement. Once you sign an exclusive agreement, you owe that agent the compensation it describes on homes covered by the agreement, even if another agent shows you the house. Read the agreement’s scope before signing.
Do I have to pay my buyer’s agent out of pocket?
Not always. Your agreement states the fee. Your offer can ask the seller to pay some or all of it as a seller concession, and many sellers agree. If the seller will not, the agreement tells you what you owe. Ask this question before you sign.
Does the RECAD rule apply to businesses and LLCs?
No. Alabama law does not require the RECAD form when the consumer is a corporation, LLC, partnership, trust or government entity. It is required for every individual buyer and seller in every type of sale: residential, commercial and land. Rental and property management services are excluded.
What if an agent still asks me to sign before a showing?
An agent can ask, and an agent can decide how many homes they are willing to show without an agreement. What they cannot do under Act 2025-59 is require a signed brokerage agreement as a condition of showing you a property. You are free to say you would like to see the home first.
How The Williams Group can help
We work with buyers the way Alabama law was designed to work: disclosure first, trust second, paperwork when you are ready. If you want to see a few homes in Tuscaloosa, Northport, Vestavia Hills, Hoover, Homewood or Trussville before deciding who represents you, that is a normal request and we welcome it. Related reading: how earnest money works in Alabama, buyer closing costs, and why Alabama is a caveat emptor state.
Ready to look at homes, with or without the paperwork?
Tell us what you are looking for. We will explain your options in plain English and let you decide when you are ready to sign.
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Sources
Alabama Legislature, HB230 enrolled (Act 2025-59), amending Ala. Code 34-27-81, 34-27-82 and 34-27-100 (showing rule, offer and listing rule, referral agreements, 30-day effective date). Alabama Real Estate Commission, Real Estate Brokerage Services Disclosure form (current form text, agent roles and duties). Alabama Association of REALTORS, A Letter to the Membership: HB230 (April 18, 2025 effective date, key provisions) and A RECAD Refresher (form timing, office policy, open house exception, entity exemption). HousingWire, Alabama law: Buyers don’t have to sign contract before home tours (March 2025) and A patchwork of buyer agency laws emerges after NAR settlement (April 2026, Mississippi and Texas comparison). This article is general information, not legal advice. Ask a licensed Alabama attorney about your specific situation.