Marcus is an affiliate broker at Volunteer Realty. His client, a buyer named Linda, wants to purchase a home listed by another affiliate broker at the same firm. The Broker-in-Charge wants to handle this transaction without creating a true dual agency situation. Which Tennessee-recognized agency arrangement would best accomplish this goal?
Correct Answer
A) Designated agency, assigning different affiliate brokers to each party
Tennessee's Agency Relationships in Real Estate Transactions Act (Tenn. Code Ann. § 62-13-401 et seq.) explicitly recognizes 'designated agency,' where the Broker-in-Charge assigns different affiliate brokers within the same firm to represent each party. This avoids true dual agency because each client has their own dedicated representative, even though both agents work for the same brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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