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?
Correct Answer
C) David's license is subject to revocation for engaging in undisclosed dual agency
Under Alabama Agency Law (Code of Alabama §34-27-81 et seq.), undisclosed dual agency — that is, acting as a dual agent without obtaining the required written informed consent from all parties — is grounds for license revocation. Verbal agreement does not satisfy Alabama's written consent requirement, making this an undisclosed dual agency situation regardless of the parties' informal understanding.
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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?
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Licensee Patricia is a transaction broker assisting both buyer Greg and seller Helen in a residential sale in Huntsville. Under Alabama Agency Law, which of the following best describes Patricia's disclosure obligation in this arrangement?