At Summit Realty in Nashville, affiliate broker Kevin represents the seller of a $380,000 home, and affiliate broker Lisa represents the buyer. Both Kevin and Lisa work under the same Broker-in-Charge. The Broker-in-Charge has assigned Kevin and Lisa to their respective clients in writing. What type of agency relationship does this describe under Tennessee law?
Correct Answer
D) Designated agency, with each affiliate broker representing one party
Tennessee's Agency Relationships in Real Estate Transactions Act (Tenn. Code Ann. § 62-13-401 et seq.) recognizes designated agency as the arrangement where a Broker-in-Charge assigns different affiliate brokers within the same firm to represent each party separately. Kevin and Lisa each represent their own client, avoiding true dual agency even though they work for the same brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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