What type of agency relationship is formed when a client hires a real estate agent in Alabama?

When a client hires a real estate agent in Alabama, an express agency relationship is formed. This type of agency is established through a clear and direct agreement, where both parties explicitly state their intentions and the terms of the relationship. In real estate transactions, this typically involves a written contract that outlines the scope of the agent's duties and the authority granted to them by the client.

Express agency is particularly important because it provides clarity regarding the obligations and expectations of both the agent and the client. It ensures that the agent is legally bound to act in the best interest of the client, maintaining fiduciary duties such as loyalty, confidentiality, and full disclosure. This distinguishes it from other types of agency relationships. For example, implied agency arises from the actions of the parties involved rather than a specific agreement, which can lead to misunderstandings about responsibilities. Similarly, oral agency, while legally enforceable, lacks the formal documentation that characterizes express agency, potentially leading to confusion. Temporary agency is less common and typically pertains to short-term arrangements that don’t have the same depth as express agency. Thus, express agency is the most appropriate and secure relationship for clients in a real estate context.