The bill amends Sections 34-27-81 and 34-27-82 of the Code of Alabama 1975 to enhance clarity in real estate transactions, particularly regarding agency relationships and brokerage agreements. Key insertions include the definition of "brokerage agreement" as a written contract between a brokerage firm and a consumer that outlines the terms of brokerage services, including compensation. The bill redefines "client" as someone with an agency agreement and "consumer" as someone seeking information or services from a real estate licensee. It mandates that a written agency agreement is necessary to establish an agency relationship, while a transaction brokerage relationship remains valid in the absence of such an agreement.

Additionally, the bill requires licensees to provide a written disclosure form to consumers at the initial contact, detailing available brokerage services before any confidential information is shared. This disclosure must occur prior to any brokerage service being provided, with exceptions for seller's agents during open houses. The bill also clarifies that rental or property management services are excluded from these requirements. Other amendments include the introduction of standardized agency disclosure forms by the Alabama Real Estate Commission and the stipulation that referral agreements must be in writing. The bill aims to improve transparency and consumer protection in real estate transactions and will take effect 30 days after enactment.