Alabama Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Alabama real estate exam, and it's also one of the most misunderstood. The Alabama Real Estate Commission (AREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Alabama law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for AL-specific rules are among the most common failures on the state portion.
Alabama Exam Study Resources
Everything you need to pass — in one place.
Alabama Agency — Practice Questions & Answers
117 questions on Agency from the Alabama real estate question bank. First 10 are free — sign up to unlock all 117.
Q1. In Alabama, which form must be provided to consumers at the first substantive contact with a real estate licensee?
Explanation
Alabama law requires licensees to provide the 'Understanding Whom Real Estate Agents Represent' disclosure form to consumers at the first substantive contact. This form explains the types of agency relationships available.
Q2. Under Alabama agency law, a 'limited consensual dual agent' may represent:
Explanation
Alabama permits limited consensual dual agency, where one broker represents both the buyer and seller in the same transaction, provided both parties give written informed consent. The agent cannot share confidential information from either party.
Q3. A licensee working with a buyer who has not signed a buyer representation agreement is considered to be:
Explanation
In Alabama, a licensee who works with a buyer without a signed representation agreement is a transaction broker (also called a non-agent or facilitator). They assist both parties but do not represent either as a fiduciary.
Q4. Which fiduciary duty requires an Alabama agent to put the client's interests above their own?
Explanation
Loyalty requires the agent to put the client's interests first — above the agent's own interests and above the interests of third parties. This is a core fiduciary duty in an agency relationship.
Q5. An Alabama listing agent discovers a material defect in the property. The seller instructs the agent to keep this secret. The agent should:
Explanation
Material defects must be disclosed to buyers regardless of the seller's instructions. An agent cannot follow instructions that require violating the law or harming third parties. Concealing material defects exposes both the agent and seller to legal liability.
Q6. A buyer's agent in Alabama owes which duty to the seller?
Explanation
A buyer's agent owes full fiduciary duties to the buyer (their client) but owes the seller honest and fair dealing — the duty not to misrepresent or deceive. The buyer's agent does not owe the seller loyalty or confidentiality.
Q7. In Alabama, which type of agency relationship is created when a broker represents both buyer and seller with written consent?
Explanation
Limited consensual dual agency occurs when one broker represents both buyer and seller in the same transaction with the written informed consent of both parties.
Q8. An agent accidentally creates an agency through their conduct without a written agreement. This is called:
Explanation
Implied agency is created through the conduct and actions of the parties rather than through a written agreement. If an agent acts as a buyer's agent without a signed agreement, an implied agency may be created.
Q9. In Alabama, the duty of confidentiality requires a listing agent to:
Explanation
Confidentiality requires the listing agent to protect the seller's private information — such as their motivation to sell, bottom line price, and financial situation — from being disclosed to buyers.
Q10. When does an agency relationship typically terminate in Alabama?
Explanation
Agency relationships terminate upon completion of the purpose (sale), expiration of the agreement, mutual agreement to terminate, death or incapacity of a party, or destruction of the property.
Q11. In Alabama, which document formally establishes a buyer agency relationship?
107 more Agency questions
Create a free account to unlock all 117 Alabama Agency questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Alabama topics