In Alabama, which form of agency exists when a licensee represents only one party — either the buyer or the seller — in a real estate transaction?
Correct Answer
A) Single agency
Single agency, as recognized under Alabama Code §34-27-81 et seq., means the licensee represents only one principal — either the buyer or the seller — and owes full fiduciary duties exclusively to that one party. This is the most straightforward agency relationship under Alabama law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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