AgencyIntermediateAlabama Exam

A buyer's agent in Alabama who also manages rental properties for investors has a potential conflict of interest when:

AThe buyer wants to purchase a commercial building, as most licensees would generally expect
BThe buyer wants to purchase a property that the agent manages for a current investor-ownerCorrect
CThe buyer wants to purchase a single-family home
DThe buyer wants to rent before buying

Why The buyer wants to purchase a property that the agent manages for a current investor-owner Is Correct

Answer B: The buyer wants to purchase a property that the agent manages for a current investor-owner

If the buyer's agent manages property for a current investor-client who is also a potential seller, the agent has competing loyalties that must be disclosed.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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