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AgencyDisclosure_requirementsEASY

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.

Answer Options
A
Broker Tom must obtain written informed consent from all parties before the dual agency arises
B
Sarah must verbally inform both the seller and Marcus of the dual agency arrangement
C
Broker Tom must notify AREC within 10 business days of the dual agency arrangement
D
Sarah must wait until the offer is submitted, then disclose the dual agency in the purchase contract

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Related Topics & Key Terms

Key Terms:

limited_consensual_dual_agencywritten_consentdisclosure_requirementsdual_agency
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