AgencyIntermediateAlabama Exam

Under Alabama agency law, when does an agency relationship with a buyer typically begin?

AWhen the buyer signs a purchase contract
BWhen the licensee shows the buyer their first property, in general
CWhen a written buyer representation agreement is signedCorrect
DWhen the buyer makes their first offer

Why When a written buyer representation agreement is signed Is Correct

Answer C: When a written buyer representation agreement is signed

In Alabama, a formal buyer agency relationship is created by a written buyer representation agreement. Without it, the licensee may be acting as a facilitator or subagent rather than as the buyer's agent.

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

People Also Study

Study This Topic

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →