Alabama Post License CEShop Study
Guide Questions & Answers
If a licensee works with a buyer as a customer, the licensee should make sure that the
buyer understands that - ANSWERSabsent an agency agreement, the licensee
represents the seller's interests. (If there is no agency agreement then I the licensee will
represent the seller although you as the buyer(client) came to me to help you
purchase.)
EMDs - ANSWERSEarnest Money Deposits
Buyer Client - ANSWERSThey signed the agency agreement stating that you will
represent them.
Buyer Customer - ANSWERSThey did NOT signed the agency agreement stating that
you will represent them.
Earnest Money Deposits Buyer client - ANSWERSI represent the buyer
Earnest Money Deposits Buyer customer - ANSWERSI represent the seller
Earnest Money Deposits for Client(buyer) - ANSWERSSuggest an amount based on
the practice in your area (e.g., 2%, 10%). Remember, it's always negotiable; to suggest
otherwise is an antitrust violation (price fixing).
Advise the buyer that earnest money may be forfeited if the buyer defaults.
Safeguard any funds entrusted to you, and deposit them according to state law,
brokerage policy, and the agreement between the parties.
Earnest Money Deposits for Customer(seller) - ANSWERSSafeguard any funds
entrusted to you, and deposit them according to state law, brokerage policy, and the
agreement between the parties.
