Carlos is an affiliate broker at Memphis Properties, LLC. He has been working with buyer clients for 18 months and wants to start representing sellers as well. His Broker-in-Charge approves. A seller named Grace signs a listing agreement with Memphis Properties, LLC, and Carlos is designated as the listing agent. Three weeks later, Carlos's buyer client makes an offer on Grace's property. Both Grace and the buyer sign a dual agency consent form. Which statement correctly describes the agency relationships at Memphis Properties after dual agency consent is given?
Correct Answer
B) Carlos owes reduced fiduciary duties to both Grace and the buyer simultaneously
Under Tenn. Code Ann. § 62-13-401 et seq., when dual agency is created with written informed consent from both parties, the agent owes fiduciary duties to both clients simultaneously, but those duties are necessarily limited or reduced because the agent cannot fully advocate for one party against the other. The agent must be neutral on price and terms while still serving both clients honestly and competently.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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