Marcus is a Tennessee affiliate broker representing the Hendersons in selling their home. During a conversation, the Hendersons tell Marcus they are going through a divorce and must sell quickly, and they would accept $20,000 below their listing price if necessary. A buyer submits a full-price offer. Marcus is tempted to tell the buyer's agent that the sellers would accept less. Under Tennessee agency law, what should Marcus do?
Correct Answer
A) Present the full-price offer to the sellers and maintain confidentiality about their minimum price
Under Tenn. Code Ann. § 62-13-401 et seq., Marcus owes the Hendersons the fiduciary duties of loyalty and confidentiality. He must present all offers promptly and protect confidential client information, including the sellers' minimum acceptable price and personal motivations. Disclosing this information to the buyer's agent would be a serious breach of his fiduciary duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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.
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