Under Alabama Agency Law, which of the following forms of agency representation is NOT permissible in Alabama residential real estate transactions?
Correct Answer
D) Undisclosed dual agency with after-the-fact written ratification by both parties
Undisclosed dual agency is never permissible under Alabama law, even if the parties later attempt to ratify it in writing after the fact. Alabama's Agency Law (Code of Alabama §34-27-81 et seq.) requires written informed consent to be obtained BEFORE a dual agency situation arises. After-the-fact ratification does not cure the violation, and undisclosed dual agency remains grounds for license revocation.
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Previous Question
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?
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Broker James has two salespersons in his firm: Agent Amy represents seller Carol, and Agent Bob represents buyer Dan in the same transaction. James wants to structure this as a designated agency arrangement to avoid dual agency issues. Under Alabama Agency Law, how should James properly handle this situation?