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?
Correct Answer
B) Kevin's license is subject to revocation for engaging in undisclosed dual agency
Under Alabama Code §34-27-81 et seq. and AREC disciplinary rules, undisclosed dual agency — representing both parties without written informed consent — is a serious violation that constitutes grounds for license revocation. Alabama law treats undisclosed dual agency as a form of fraud and dishonest dealing, making license revocation the most serious and legally accurate consequence.
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Previous Question
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?
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Alabama licensee Janet represents buyer Mike under a written buyer agency agreement. Janet finds a property listed by another broker in her office, broker Dan, who represents the seller. The firm's broker-owner, Helen, wants to avoid a limited consensual dual agency situation. Which arrangement would best allow both Mike and the seller to receive full representation under Alabama law?