Alabama licensee Mark represents buyer Susan as a buyer's agent. During negotiations, the seller's agent reveals that the seller is going through a divorce and must sell quickly at any price. Mark shares this information with Susan, allowing her to submit a significantly lower offer. The seller later complains to AREC. Which of the following best describes Mark's conduct under Alabama Agency Law?
Correct Answer
D) Mark acted properly because buyer's agents in Alabama are obligated to share all material information with their clients
Under Alabama Agency Law (Code of Alabama §34-27-81 et seq.), a buyer's agent owes fiduciary duties to the buyer, including the duty to promote the buyer's best interests. Sharing material information — such as the seller's motivation and urgency — with the buyer is not only permissible but required as part of the agent's duty of loyalty and disclosure to the client. The seller's agent voluntarily disclosed this information, and Mark had no obligation to withhold it from Susan.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Question
Background Knowledge for Agency
Real World Application in Agency
Common Mistakes to Avoid on Agency Questions
Related Topics & Key Terms
Key Terms:
More Agency Questions
Under agency law in Nevada, dual agency is:
Oregon broker Olivia is working with buyer couple Derek and Sarah. During their first meeting, Derek and Sarah ask Olivia who she represents in the transaction. Under Oregon law, when is Olivia required to provide a written agency disclosure to Derek and Sarah?
A buyer's agent in New York owes the seller:
Oregon broker James lists a home for sellers Greg and Helen. After the listing agreement is signed, buyer Natalie contacts James directly and says she wants to make an offer on the property without using her own agent. James would like to enter into a disclosed limited agency arrangement. Which of the following actions is required before James can legally proceed as a disclosed limited agent?
Utah recognizes which agency relationships?
- → New Jersey continuing education requirements include:
- → Virginia continuing education requirements for salespersons include:
- → Washington recognizes which agency relationships?
- → Maryland real estate licensees are regulated by the:
- → Wisconsin requires the Agency Representation Disclosure:
- → Dual agency in South Dakota requires:
- → West Virginia recognizes which agency relationships?
- → Under Hawaii law, which term describes the agency relationship in which a real estate licensee represents only the seller in a transaction?
- → Wyoming real estate licensees are regulated by the:
- → West Virginia requires how many hours of pre-license education?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
Under Alabama Agency Law, which document must a licensee provide to a prospective buyer or seller to satisfy the written agency disclosure requirement at first substantive contact?
Next Question
Alabama salesperson Lisa is holding an open house for a listing. A visitor, buyer Paul, begins asking detailed questions about the neighborhood and expresses strong interest in making an offer. Lisa has not yet provided any written agency disclosure to Paul. Under Alabama Agency Law, what should Lisa do at this point?