Alabama's new law modifies existing real estate regulations by preventing early contracts between consumers and agents, enhancing relationships prior to commitments. The bill, supported by the Alabama Association of Realtors, responds to a DOJ warning about potential antitrust issues stemming from mandatory buyer broker agreements under a recent settlement involving the National Association of Realtors. This law is intended to foster competition and empower consumers by allowing them to better evaluate agents before binding themselves to agreements.
The DOJ expressed concerns that mandatory buyer broker agreements may impede competition, akin to prior arrangements that were found to breach antitrust laws.
Under Alabama's new law, consumers cannot be mandated to sign brokerage contracts early, allowing them more freedom to explore their options.
Realtors argue that buyers prefer to establish a relationship with agents before entering into binding agreements, ensuring better client-agent connection.
This legislative change aims to foster a more competitive environment for real estate transactions, addressing the DOJ's scrutiny of brokerage practices.
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