AgencyIntermediateAlabama Exam

In Alabama, when must a licensee disclose their agency relationship to a prospective buyer?

AOnly at closing
BOnly after an offer is submitted
CAt the first substantive contactCorrect
DOnly when a written contract is signed

Why At the first substantive contact Is Correct

Answer C: At the first substantive contact

Alabama law requires licensees to disclose their agency relationship at the first substantive contact with a prospective buyer or seller.

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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