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?
Correct Answer
A) Obtain written informed consent from both Marcus and the seller before the dual agency begins
Alabama Code §34-27-81 et seq. requires that limited consensual dual agency be established only with the written informed consent of all parties, and this consent must be obtained BEFORE the dual agency situation arises — not after. Written consent is a non-negotiable prerequisite under Alabama law.
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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?
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Agent Lisa in Alabama is helping buyer David find a home. Lisa has not entered into any agency agreement with David and is simply showing him properties and providing information about the market without advocating for his interests. Under Alabama law, what type of relationship does Lisa most likely have with David?