Tennessee affiliate broker Michelle is representing the Walkers as their buyer's agent. The Walkers instruct Michelle to submit an offer $15,000 below asking price and to not disclose their pre-approval letter amount to the seller. Michelle believes the offer is too low and the sellers will reject it. What should Michelle do?
Correct Answer
A) Submit the offer as directed and withhold the pre-approval letter per the Walkers' instructions
Under Tenn. Code Ann. § 62-13-401 et seq., the fiduciary duties of obedience and loyalty require Michelle to follow her clients' lawful instructions, even if she personally disagrees with their strategy. Submitting the offer at the requested price and withholding the pre-approval amount are both lawful instructions that serve the Walkers' negotiating interests. Michelle may share her professional opinion, but the final decision belongs to the clients.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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