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?
Correct Answer
C) Transaction brokerage
Transaction brokerage is recognized under Alabama Code §34-27-81 et seq. as a non-agency form of assistance where the licensee facilitates the transaction without representing either party as a fiduciary. Lisa is providing services without advocating for David's interests, which fits the definition of transaction brokerage under Alabama law.
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Previous Question
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?
Next Question
Broker Kevin in Alabama represents seller Patricia under a listing agreement. Buyer Carlos, who is unrepresented, contacts Kevin directly and makes an offer on Patricia's property. Kevin proceeds to negotiate on behalf of both Patricia and Carlos without disclosing his agency status or obtaining any written consent from Carlos. Under Alabama law, what is the most serious consequence Kevin faces?