Affiliate Broker Kim works for Volunteer Realty. She is showing a listed property to buyer Tom, who is not represented by any agent. Tom asks Kim to write an offer on his behalf. Kim's broker-in-charge agrees to allow Kim to represent both the seller and Tom in the same transaction. Which of the following statements correctly describes the disclosure requirement in this situation?
Correct Answer
A) Kim must obtain written informed consent from both the seller and Tom before proceeding as a dual agent
Under Tenn. Code Ann. § 62-13-401 et seq., Tennessee permits dual agency but requires written informed consent from both parties before the agent may proceed in that capacity. Simply disclosing seller agency at first substantive contact does not satisfy the additional consent requirement that arises when dual agency is proposed. Both the seller and Tom must provide written consent to the dual agency arrangement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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