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?
Correct Answer
A) Before the dual agency situation arises — prior to showing Paul the in-house listing
Alabama Code §34-27-81 et seq. requires that written informed consent for limited consensual dual agency be obtained BEFORE the dual agency situation arises. In this scenario, the dual agency situation begins when Sandra (who represents Paul) considers showing or facilitating Paul's interest in a property her firm also lists. Consent must be secured before that activity begins, not after.
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Previous Question
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.
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Alabama licensee Rachel represents seller Howard under a listing agreement. Buyer Kim, who is unrepresented, contacts Rachel directly and expresses interest in Howard's property. Rachel explains she represents Howard and offers to assist Kim as a transaction broker. Kim agrees verbally. Rachel then helps Kim prepare an offer and negotiates on Howard's behalf. Which statement best describes Rachel's agency obligations in this situation?