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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.

Answer Options
A
Continue the conversation and provide written disclosure when Paul formally submits an offer
B
Provide written agency disclosure to Paul immediately, as this conversation constitutes first substantive contact
C
Refer Paul to another agent in the firm to avoid any dual agency concerns before disclosure is needed
D
Ask Paul to sign the listing agreement before providing the agency disclosure form

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Related Topics & Key Terms

Key Terms:

agency_disclosurefirst_substantive_contactopen_housewritten_disclosuredisclosure_requirements

Related Concepts

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

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