AgencyIntermediateAlabama Exam

A transaction broker (facilitator) in Alabama has duties to the parties that:

AAre identical to full fiduciary duties

BAre limited non-fiduciary duties of honesty, accounting, and reasonable careCorrect

CInclude full loyalty to both parties simultaneously

DRequire the broker to act as an attorney for both parties, under this approach

Why Are limited non-fiduciary duties of honesty, accounting, and reasonable care Is Correct

Answer B: Are limited non-fiduciary duties of honesty, accounting, and reasonable care

A transaction broker or facilitator owes limited duties — typically honesty, fair dealing, reasonable care, and accounting — but does not owe the full fiduciary duties of a single agent.

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.

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Key Terms to Know

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

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.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

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