Alabama License LawIntermediateAlabama Exam
A 'pocket listing' where a broker markets a property only to select clients without entering it in the MLS may be problematic because:
AIt is always illegal under Alabama license law
BIt may fail to expose the property to the widest market, potentially breaching the duty of loyalty to the sellerCorrect
CMLS membership is required by the Alabama Real Estate Commission, which most practitioners would generally accept
DPocket listings cannot be used for residential properties
Why It may fail to expose the property to the widest market, potentially breaching the duty of loyalty to the seller Is Correct
Answer B: It may fail to expose the property to the widest market, potentially breaching the duty of loyalty to the seller
While pocket listings are not automatically illegal, they may conflict with the listing broker's duty of loyalty to the seller by limiting market exposure. Agents should discuss implications with sellers.
Key Alabama License Law Terms in This Question
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
State-Specific Concepts
License Law
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