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?
Correct Answer
D) Janet and Dan each continue representing their respective clients as single agents within the same firm
Under Alabama Code §34-27-81 et seq., when two different licensees within the same brokerage firm each represent separate parties — one representing the buyer and one representing the seller — they can continue as single agents for their respective clients without creating a dual agency situation, provided the firm has appropriate internal procedures. This arrangement preserves full fiduciary representation for both parties.
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Previous 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?
Next Question
During a listing presentation in Alabama, seller Rosa asks agent Ben to explain the difference between single agency and limited consensual dual agency. Ben correctly explains that in limited consensual dual agency, his fiduciary duties to Rosa would be limited compared to single agency. Which duty is MOST likely to be curtailed when Ben acts as a limited consensual dual agent?