Alabama

	Limits choice of brokerage services
	Prohibits brokers from offering rebates to consumers

Alabama law requires real estate brokers to perform a host of services for consumers, including accepting and presenting offers and counteroffers, as well as answering their clients’ questions, in every transaction involving an agreement to list an owner’s property for sale. Brokers must perform these services whether consumers want them or not. Brokers cannot offer and consumers cannot purchase MLS-listing-only and other à la carte services.

Alabama law also prohibits brokers from offering consumers rebates. In practice, the Alabama Real Estate Commission permits rebates before closing but forbids cash payments or other incentives offered after closing.

Learn more about:

• Brokerage services: Discount Brokers Can Make Selling a Home Less Costly
• Rebates: Rebates Make Buying a Home Less Expensive

Antitrust Division documents:

Press release:

• The Justice Department and the Federal Trade Commission Urge the Alabama State Senate to Continue to Allow Consumer Choice in Real Estate Brokerage Services (05/12/2005)

Comment letter:

• Letter to the Alabama Senate Re: Comments on House Bill 156—Proposed Amendments to Section 34-27-84, Code of Alabama (05/12/2005)

Related documents on the Internet:

• Alabama Code §§ 34-27-84 requiring brokers to perform minimum services
• Alabama Code § 34-27-36(a)(12) prohibiting brokers from offering rebates to consumers
• Charles R. Sowell, General Counsel of the Alabama Real Estate Commission, Briefly Legal: Gifts, Rebates & Kickbacks

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