Affiliate Broker Mark works for Summit Realty in Tennessee. Mark has been working with buyer client Dana for two months, showing her properties and discussing her finances in detail. Dana has not signed any buyer representation agreement. A seller's property comes available, and Dana wants to make an offer. The seller is also unrepresented. Mark's BIC says Mark can represent both Dana and the seller as a dual agent. Dana verbally agrees to dual agency but refuses to sign anything in writing. Can Mark proceed as a dual agent under Tennessee law?
Correct Answer
A) No, because Tennessee law requires written informed consent from both parties before a dual agency relationship may proceed
Under Tenn. Code Ann. § 62-13-401 et seq., Tennessee requires written informed consent from both parties before an agent may proceed as a dual agent. Dana's verbal agreement, regardless of the length of their working relationship or her apparent understanding of the situation, does not satisfy this statutory requirement. Mark cannot proceed as a dual agent until both Dana and the seller have provided written informed consent. Proceeding without written consent would violate Tennessee's agency law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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