The Legal Line is a free service for AAR members to receive answers to questions about the AAR forms, NAR’s rules, Alabama license law, and basic real estate questions. We’ve selected a few recent questions and answered them below for your reference. If you have questions that our attorneys can help with, please contact us!

Q1: Does it run afoul of the Fair Housing Act if I advertise a property as being “walkable”?

A1: We would recommend against describing a property in that way. First, it may be interpreted as expressing a preference for individuals without a disability. Second, it’s not all that helpful: “walkable” is defined differently by different people. It is better to write the actual distance between the property and any landmarks.

Q2: If the consumers negotiate buyer broker compensation in the Purchase Agreement, should I complete a Compensation Agreement Between Brokers?

A2: No. The Purchase Agreement is a contract between the consumers, whereas a Compensation Agreement Between Brokers is a contract between licensees. Since they are separate contracts, completing both would create duplicative agreements. Only either the Purchase Agreement or a Compensation Agreement should be used.

Q3: If someone submits a Purchase Agreement on a form that I know is outdated, do I have to present that offer to the seller?

A3: Yes. Alabama license law requires that you present all offers to purchase to the seller, regardless of the form that the offer to purchase is made on. However, you are permitted to counter using a different form, if that is appropriate for the transaction and/or the seller’s desires.

Q4: Must I complete an Estimated Closing Statement (net sheet) every time the seller receives an offer? What about if we change the list price of the property?

A4: The answer to both questions is yes. You must complete an Estimated Closing Statement when you list the property, if you change any of the financial details of the listing (such as the list price or seller concessions offered), for every offer and counteroffer received, and for any counteroffers made by the seller.