AgencyIntermediateAlabama Exam

In Alabama, designated agency means:

AThe broker personally represents both parties
BThe broker designates one agent to represent the buyer and a different agent to represent the seller within the same firmCorrect
CThe state designates which broker handles a transaction
DOnly one agent in the state may handle a particular property, which is broadly consistent with standard practice statewide

Why The broker designates one agent to represent the buyer and a different agent to represent the seller within the same firm Is Correct

Answer B: The broker designates one agent to represent the buyer and a different agent to represent the seller within the same firm

Designated agency allows the broker to appoint (designate) one licensee to represent the buyer and another to represent the seller within the same brokerage, avoiding full dual agency.

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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