AgencyIntermediateAlabama Exam

When must an Alabama licensee provide a consumer with the 'Understanding Agency' disclosure?

AAt the first substantive contactCorrect
BOnly at closing
COnly when a contract is signed
DOnly when representing a buyer, in general

Why At the first substantive contact Is Correct

Answer A: At the first substantive contact

Alabama law requires licensees to provide the 'Understanding Agency' (or equivalent agency disclosure) to consumers at the first substantive contact, so consumers understand who the agent represents before sharing sensitive information.

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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