AgencyIntermediateAlabama Exam

In Alabama, a real estate agent must disclose to a prospective buyer that they have a personal financial interest in a property they are selling. This disclosure must be:

AMade only verbally at closing

BMade in writing before the buyer makes an offerCorrect

CFiled with AREC within 10 days of the sale

DNot required if the agent is also a licensed broker

Why Made in writing before the buyer makes an offer Is Correct

Answer B: Made in writing before the buyer makes an offer

Alabama license law requires licensees to disclose in writing any personal financial interest in a transaction — including when they are the seller or have a beneficial interest — before the other party enters into the transaction.

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.

People Also Study

Key Terms to Know

Agency

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

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

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.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

State-Specific Concepts

AREC RegulationLicense Law

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Agency Law Guide

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