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?
Correct Answer
C) Rachel owes full fiduciary duties to Howard as his single agent while providing non-agency assistance to Kim as a transaction broker
Under Alabama Code §34-27-81 et seq., a licensee can simultaneously act as a single agent for one party (Howard, the seller) while providing transaction brokerage assistance to the unrepresented other party (Kim). Rachel continues to owe Howard full fiduciary duties under the listing agreement, while her assistance to Kim is non-agency in nature — she facilitates without advocating for Kim's interests. This is a permissible arrangement provided proper disclosure is made.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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