Agency
An agent who works for a real estate firm that has a listing is representing a buyer interested in that listing. This creates what type of agency situation?
ASingle agency
BSubagency
CDesignated agency or in-house dual agency✓ Correct
DNon-agency
Explanation
When a buyer's agent and a listing agent are from the same brokerage, an in-house dual agency situation arises. Many Alabama brokerages address this through designated agency, where different agents are designated to represent each party.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
DRE Regulation
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