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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Previous Question
Under Alabama law, which term specifically describes the agency relationship in which a licensee represents both the buyer and the seller in the same transaction with the written informed consent of all parties?
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Sarah is a licensed Alabama salesperson working under broker Tom. A buyer named Marcus approaches Tom's firm wanting to purchase a home that Tom's firm already has listed. Tom wants to represent both Marcus and the seller in this transaction. Under Alabama law, what must Tom do BEFORE proceeding with this arrangement?