The bill amends Sections 34-27-81 and 34-27-82 of the Code of Alabama 1975 to clarify the requirements for real estate transactions, particularly focusing on agency relationships and brokerage agreements. Key insertions include the definition of a "brokerage agreement" as a written contract between a brokerage firm and a consumer that establishes a brokerage relationship, which must outline terms of service and compensation. The bill also defines a "client" as someone with an agency agreement with a broker and a "consumer" as an individual seeking information or services from a real estate licensee. It mandates that a written agency agreement is necessary to establish an agency relationship and specifies the conditions under which a transaction brokerage relationship remains effective.

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 the provision of any brokerage service, with exceptions for seller's agents during open houses. The bill removes certain language regarding alternative brokerage arrangements and clarifies that rental or property management services are excluded from these requirements. It also introduces standardized agency disclosure forms to be developed by the Alabama Real Estate Commission and addresses referral fees, stipulating that referral agreements must be in writing and prohibiting unlawful agreements. Overall, these amendments aim to enhance transparency and protect consumers in real estate transactions, with the act taking effect 30 days after enactment.