Alabama License LawIntermediateAlabama Exam
Under AREC rules, which of the following disclosures must be made in writing to a buyer at the earliest practical opportunity?
AThe seller's asking price
BThe licensee's agency relationship with the partiesCorrect
CThe commission amount
DThe estimated closing costs, under standard practice
Why The licensee's agency relationship with the parties Is Correct
Answer B: The licensee's agency relationship with the parties
Alabama requires written disclosure of the licensee's agency relationship with the parties at the earliest practical opportunity, typically at the first substantive contact.
Key Alabama License Law Terms in This Question
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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.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
State-Specific Concepts
AREC Regulation
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