AgencyIntermediateAlabama Exam

A seller's broker who discovers that the buyer their seller is under contract with is the broker's own relative should:

AProceed normally as this is not a conflict, under standard practice
BDisclose the relationship to the seller and obtain written consentCorrect
CWithdraw from the transaction immediately
DOnly disclose if the seller asks

Why Disclose the relationship to the seller and obtain written consent Is Correct

Answer B: Disclose the relationship to the seller and obtain written consent

A broker must disclose any conflicts of interest to their client. If the buyer is a relative of the agent, this creates a potential conflict that must be disclosed to the seller, who can then decide how to proceed.

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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