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?
Correct Answer
B) Provide written agency disclosure to Paul immediately, as this conversation constitutes first substantive contact
Under Alabama Agency Law (Code of Alabama §34-27-81 et seq.), the written agency disclosure must be provided at or before the first substantive contact with a prospective client. Paul's detailed questions about the neighborhood and expressed interest in making an offer clearly constitute first substantive contact. Lisa must immediately provide the written agency disclosure before the conversation continues further.
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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?
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