A
new law in Alabama aims to protect homebuyers from being pressured into signing binding contracts before viewing properties. The legislation, signed by the governor on Thursday, gives consumers and agents more time to negotiate terms of representation. According to Jeremy Walker, CEO of the state's Realtor association, written buyer agreements are beneficial for both parties, but it's essential that individuals have sufficient time to consider and modify the terms.

    The law was inspired in part by a Department of Justice statement highlighting concerns about "sign now, amend later" approaches to buyer agreements. This practice can limit competition among agents. The new legislation also aligns with the National Association of Realtors' settlement on commissions lawsuits, which requires buyers to sign an agreement before home tours.

    The NAR has stated that state law takes precedence over its settlement terms when state laws require buyer agreements sooner than the settlement does. Alabama's new law appears to comply with this principle and Colorado's approach, where regulators emphasize that state law doesn't necessitate pre-tour agreements.