Which fiduciary duty requires an Alabama agent to put the client's interests above their own?
Why Loyalty Is Correct
Answer B: Loyalty
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
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
People Also Study
Related Alabama Questions
- Which fiduciary duty requires an agent to keep the principal's information private from third parties?Agency
- The duty of 'accounting' in a real estate agency relationship requires the agent to:Agency
- In Alabama, when must a licensee disclose their agency relationship to a prospective buyer?Agency
- The duty of 'accounting' in a fiduciary relationship requires an agent to:Agency
- A real estate agent who includes a clause in a purchase contract that protects only the agent's interests at the expense of their client is:Contracts
- When must an Alabama broker provide a written agency disclosure to a prospective client?Alabama License Law
- Under Alabama license law, the relationship between a broker and their independent contractor salesperson means:Alabama License Law
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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 →