Angela is a Tennessee affiliate broker who has been working exclusively with buyer clients for two years. A friend approaches her and asks if she can list his home for sale. Angela agrees and signs a listing agreement. Her broker has not assigned any other agent to the buyer who later becomes interested in this same listing. The buyer has not signed a buyer representation agreement with Angela. Under Tennessee law, what is Angela's agency status in this situation?
Correct Answer
B) Angela is in a dual agency situation and must obtain written consent from both parties
Under Tenn. Code Ann. § 62-13-401 et seq., when Angela works with a buyer on a property she has listed, she is in a dual agency situation even without a formal buyer representation agreement, because she is assisting both the seller (her listed client) and the buyer in the same transaction. Tennessee law requires written informed consent from both parties before a dual agency relationship can proceed lawfully.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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