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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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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