Sarah is a licensed Alabama salesperson working for Broker Tom. She is showing a listing to buyer Marcus. Marcus asks Sarah to represent him as a buyer's agent instead. Sarah agrees. Under Alabama law, what must happen before this dual agency situation can legally proceed?
Correct Answer
A) Broker Tom must obtain written informed consent from all parties before the dual agency arises
Alabama law specifically requires that limited consensual dual agency be established only with the written informed consent of all parties, and this consent must be obtained BEFORE the dual agency situation arises. The broker — not just the salesperson — bears responsibility for obtaining this written consent. This is codified under Code of Alabama §34-27-81 et seq. and is a hallmark of Alabama's specific dual agency framework.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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