Alabama licensee Donna is acting as a limited consensual dual agent for both buyer Frank and seller Nancy in the same transaction. All required written consents have been properly obtained. Which of the following duties does Donna still owe to BOTH parties under Alabama law? Select the answer that is NOT among Donna's continuing obligations.
Correct Answer
C) The duty to advocate exclusively for Frank's interests in all price negotiations
In a limited consensual dual agency, the duty to advocate exclusively for one party's interests is specifically curtailed. Donna cannot advocate solely for Frank's interests in price negotiations because she simultaneously owes duties to Nancy. The 'undivided loyalty' component of fiduciary duty — which would normally require Donna to push for the lowest price for Frank — is limited in dual agency. This is NOT a continuing obligation in limited consensual dual agency.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Question
Background Knowledge for Agency
Real World Application in Agency
Related Topics & Key Terms
Key Terms:
More Agency Questions
Which duty requires an agent to keep the principal informed of all material facts?
Under agency law in Nevada, dual agency is:
Under agency law in Hawaii dual agency is:
All correctly describe listing brokers and property managers except:
A New York dual agent must have:
- → Vermont requires agency disclosure:
- → Vermont real estate licensees are regulated by the:
- → Under California law, dual agency is:
- → Listing broker learns prospective buyer owes delinquent child support. Which duty requires disclosure to seller?
- → Under agency law in NH, disclosed dual agency is:
- → If a 16-year-old emancipated minor wishes to sell real property, their broker may:
- → All of the following actions create an agency relationship, except:
- → An agency relationship in real estate is terminated in multiple ways. All of the following are likely to be the cause of termination of an agency relationship, except:
- → Real estate brokers are required to have written employment contracts with:
- → A licensed real estate salesperson is primarily responsible to:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
In Alabama, which of the following best describes a 'subagent' in a real estate transaction?
Next Question
Alabama broker firm Coastal Realty has two salespersons: Agent Amy represents seller Bob under a listing agreement, and Agent Carl represents buyer Dana under a buyer agency agreement. Bob's property is the one Dana wants to purchase. Coastal Realty's broker, Ellen, has not implemented a formal internal policy separating the two agents' client information. Bob and Dana have each signed a limited consensual dual agency consent form. Which statement most accurately describes the legal status of this arrangement under Alabama law?