Agency
An Alabama real estate agent who represents a client in a transaction and also has a financial interest in the outcome should:
AProceed without disclosure if the conflict is minor
BDisclose the conflict of interest to all parties and obtain informed consent✓ Correct
CWithdraw from the transaction immediately without disclosure
DTransfer the listing to another agent
Explanation
An agent with a financial interest in the outcome of a transaction must disclose this conflict to all parties and obtain their informed consent before proceeding.
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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.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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