Under Alabama Code §34-27-81 et seq., which of the following is a permissible form of agency relationship that Alabama licensees may enter into with clients? Select the answer that is NOT a recognized form of representation under Alabama law.
Correct Answer
D) Undisclosed dual agency without the knowledge of either party
Undisclosed dual agency — representing both the buyer and seller without their knowledge or written consent — is NOT a permissible form of representation under Alabama law. Alabama Code §34-27-81 et seq. expressly prohibits undisclosed dual agency and treats it as grounds for license revocation. All three other options (single agency, transaction brokerage, and limited consensual dual agency with written consent) are permissible forms of representation under Alabama law.
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Previous Question
Alabama licensee Greg is working with buyer Tina as a transaction broker. Tina asks Greg whether he is required to keep her financial information confidential from the seller. Under Alabama law, which statement best describes Greg's confidentiality obligation in a transaction brokerage relationship?
Next Question
Alabama broker Sandra has been representing buyer Paul under a written buyer agency agreement for three weeks. Paul has now identified a home listed by Sandra's own firm. Sandra realizes this will create a dual agency situation. At what point must Sandra obtain written consent from both Paul and the seller to proceed as a limited consensual dual agent?