In Tennessee, broker-in-charge Robert supervises four affiliate brokers at his firm. One of his affiliate brokers, Tom, is representing both the buyer and the seller in the same transaction. Robert assigns a different affiliate broker, Angela, to represent only the buyer, while Tom continues to represent only the seller. What type of agency arrangement has Robert created?
Correct Answer
B) Designated agency, which allows each party to receive undivided representation within the same firm
Under Tenn. Code Ann. § 62-13-401 et seq., Tennessee recognizes designated agency as a specific alternative to dual agency. When a broker-in-charge assigns separate affiliate brokers within the same firm to represent each party exclusively, this is designated agency. Each designated agent owes full fiduciary duties only to their assigned client, avoiding the conflicts inherent in true dual agency.
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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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In West Virginia, a WV licensee fails to disclose on the Commission agency relationship form whether the licensee represents the seller, buyer, or both. Which statement is correct?
In Vermont, a licensee owes fiduciary duties to a client. Which statement is correct?
- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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- → In Vermont, a seller receives another offer before closing. Which statement is correct?
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