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?
Correct Answer
C) Derek must keep both parties' confidential pricing information private and may not disclose either party's limits to the other
Under Alabama Code §34-27-81 et seq., a limited consensual dual agent owes a duty of confidentiality to both parties. Derek may not disclose Leo's maximum willingness to pay to Gwen, nor may he disclose Gwen's minimum acceptable price to Leo. This is one of the core limitations of limited consensual dual agency — the agent cannot use one party's confidential information to benefit the other party.
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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?
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