Affiliate Broker Sandra represents a buyer who is interested in a property listed by a different affiliate broker at the same firm. The broker-in-charge has not designated Sandra or the listing broker to exclusively represent their respective clients. The buyer and seller each want to proceed with the transaction. What is the most accurate description of the firm's agency status in this situation?
Correct Answer
B) The firm is acting as a dual agent, and both parties must provide written informed consent
Under Tenn. Code Ann. § 62-13-401 et seq., when two affiliate brokers in the same firm represent the buyer and seller in the same transaction without the BIC making a formal designation of exclusive representation, the firm is acting as a dual agent — representing both parties simultaneously. Tennessee permits this only with written informed consent from both the buyer and seller. Without that consent, the firm cannot proceed.
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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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