Broker Diana represents seller Kevin in the sale of his Birmingham home. Buyer Linda approaches Diana directly without her own agent. Diana agrees to assist Linda with the transaction while still representing Kevin. Under Alabama law, what is the correct term for this type of representation?
Correct Answer
A) Limited consensual dual agency
Alabama law uses the specific statutory term 'limited consensual dual agency' to describe the situation where a licensee represents both the buyer and the seller in the same transaction. Alabama's Agency Law (Code of Alabama §34-27-81 et seq.) requires this arrangement to be identified by this precise terminology, and written informed consent from all parties must be obtained before it proceeds.
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Previous Question
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?
Next Question
Alabama licensee David enters into a limited consensual dual agency arrangement without obtaining written consent from either the buyer or the seller, believing that both parties verbally agreed to the arrangement. After the transaction closes, the buyer files a complaint with AREC. What is the most likely consequence for David under Alabama law?