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?
Correct Answer
B) James must obtain written informed consent from both Carol and Dan to establish limited consensual dual agency at the brokerage level
Under Alabama Agency Law, when two salespersons within the same brokerage represent opposing parties in the same transaction, the brokerage itself is considered to be in a dual agency situation. Alabama does not have a separate 'designated agency' statute that insulates the broker from dual agency obligations. Therefore, Broker James must obtain written informed consent from both Carol and Dan — establishing limited consensual dual agency — before the transaction proceeds, as required by Code of Alabama §34-27-81 et seq.
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Under Alabama Agency Law, which of the following forms of agency representation is NOT permissible in Alabama residential real estate transactions?
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Under Alabama Agency Law (Code of Alabama §34-27-81 et seq.), all of the following statements about agency disclosure requirements are correct EXCEPT: