29.4 AL – Representation Issues
Topic 29.4: Violations — Representation Issues
Representation creates duties. When licensees don’t follow the rules for agency relationships, advertising identification, listings, and offer handling, they can violate Alabama License Law and AREC Administrative Rules—even if they believe they’re “helping.”
The core idea
Any time a licensee represents a consumer, the law expects the licensee to follow specific rules that protect the public—especially around consent, disclosure, documentation, and fair dealing.
Representation violations (what to recognize)
Dual agency is allowed only when all parties consent in writing. If the licensee fails to obtain written consent from every party represented, it’s a violation.
Example: getting the seller’s consent but never informing the buyer or obtaining the buyer’s written authorization.
Parties have the right to receive copies of documents related to the transaction. Licensees must furnish copies of listings, contracts, leases, and other documents with reasonable promptness.
Advertising must identify the licensee as licensed and must include the company/qualifying broker name prominently. The qualifying broker must not allow ads that omit the brokerage name.
“Prominently” means it should stand out—larger than generic terms like “for sale/for lease” and placed where consumers will notice.
A licensee must obtain the property owner’s consent before placing a sign on the property. Placing a sign without consent is a violation—even if the sign itself meets advertising rules.
A net listing sets a “net price” the owner must receive, and the broker keeps anything above that amount as commission. Net listings are prohibited in Alabama. Accepting one is a violation.
Listing agreements must include a fixed expiration date. AREC rules do not allow automatic extensions. Failing to include a fixed expiration date is a violation (and the seller must receive a copy of the listing).
A key duty to a seller-client is to present all written purchase offers. A licensee may advise, but may not withhold an offer because they think it’s “too low.”
Representation Issues
Choose the best answer for each question, then select Check Answers.
A broker represents both buyer and seller in the same transaction. What must happen for this to be legal in Alabama?
Dual agency requires written consent from all parties represented. Missing even one party’s written authorization makes it unauthorized dual agency.
A listing agent receives a written offer they believe is “too low,” so they don’t show it to the seller. Under Alabama law, this is:
The agent must present all written offers. The agent can advise the seller, but cannot withhold an offer.
Great job! You have the key points of this topic down.
