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?
Correct Answer
C) The duty of undivided loyalty to advocate solely for Rosa's best price
Under Alabama Code §34-27-81 et seq., the duty of undivided loyalty — which in single agency means advocating solely for the client's best interests, including negotiating the highest possible price for a seller — is the duty most significantly curtailed in limited consensual dual agency. Because the agent also owes duties to the buyer, the agent cannot advocate exclusively for either party's price position.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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