Alabama broker firm XYZ Realty has a policy of operating exclusively as transaction brokers for all clients. Seller Mark approaches XYZ Realty and specifically requests full single-agent representation, insisting he wants someone to advocate solely for his interests. Under Alabama law, which statement is most accurate regarding XYZ Realty's options?
Correct Answer
B) XYZ Realty may decline to enter into a single agency relationship with Mark and may operate solely as a transaction broker if that is the firm's policy
Under Alabama Code §34-27-81 et seq., brokerage firms are permitted to establish their own policies regarding the types of representation they offer. A firm may lawfully choose to operate exclusively as transaction brokers and is not required to offer single agency representation. If Mark requires single-agent representation, he would need to seek services from a different firm that offers that relationship type.
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Previous Question
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?
Next Question
Alabama licensee Derek is acting as a limited consensual dual agent in a transaction involving seller Gwen and buyer Leo. During negotiations, Leo privately tells Derek that he is willing to pay up to $280,000 for the property, although his initial offer is $255,000. Gwen has told Derek she will accept anything above $265,000. Under Alabama law, what must Derek do with this information?