AgencyIntermediateAlabama Exam

In a dual agency situation, the agent owes both parties the duty of:

AFull loyalty to each side simultaneously
BHonest dealing and fair treatment, but cannot share one party's confidential information with the otherCorrect
CAbsolute confidentiality for all information
DFull disclosure of each party's negotiating position, though outcomes can differ depending on circumstances

Why Honest dealing and fair treatment, but cannot share one party's confidential information with the other Is Correct

Answer B: Honest dealing and fair treatment, but cannot share one party's confidential information with the other

A dual agent must treat both parties fairly and honestly, but cannot share one party's confidential information (such as their maximum price or motivation) with the other party.

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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