AgencyIntermediateAlabama Exam

Under Alabama law, a listing broker's duty to the seller is BEST characterized as:

AA contractual duty only
BA full fiduciary duty including loyalty, confidentiality, disclosure, obedience, accounting, and diligenceCorrect
CA limited duty of honest dealing only
DA duty to the seller and the buyer equally, though the exact requirements can vary somewhat by jurisdiction

Why A full fiduciary duty including loyalty, confidentiality, disclosure, obedience, accounting, and diligence Is Correct

Answer B: A full fiduciary duty including loyalty, confidentiality, disclosure, obedience, accounting, and diligence

A listing broker acting as the seller's agent owes the seller full fiduciary duties — the highest standard of trust and care — including loyalty, confidentiality, disclosure, obedience, accounting, and diligence.

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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