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Practice Of Real EstateLicense_lawHARD

Under Alabama license law and AREC rules, all of the following are grounds for AREC to suspend or revoke a real estate license EXCEPT:

Correct Answer

C) Representing a buyer and a seller in the same transaction with written informed consent from both parties

Under Alabama Agency Law (Code of Alabama §34-27-81 et seq.), representing both a buyer and a seller in the same transaction is permissible as 'limited consensual dual agency' when both parties provide written informed consent. This is a legally authorized form of representation in Alabama and is NOT a ground for license suspension or revocation. The written consent requirement distinguishes lawful dual agency from the prohibited undisclosed dual agency, which would be grounds for discipline.

Answer Options
A
Engaging in misrepresentation or fraudulent conduct in a real estate transaction
B
Failing to disclose a known material defect in a property being sold
C
Representing a buyer and a seller in the same transaction with written informed consent from both parties
D
Commingling client trust funds with the broker's personal operating account

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Related Topics & Key Terms

Key Terms:

grounds_for_revocationlimited_consensual_dual_agencydisciplinary_actionlicense_lawreverse_question

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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