Under the Tennessee Agency Relationships in Real Estate Transactions Act, a licensee acting as a seller's agent owes the seller several fiduciary duties. Which of the following is NOT a fiduciary duty owed by a seller's agent to the seller under Tennessee law?
Correct Answer
C) Guaranteeing that the buyer will obtain mortgage financing
Guaranteeing that the buyer will obtain mortgage financing is NOT a fiduciary duty — or any duty — of the seller's agent. A seller's agent has no ability or obligation to guarantee a buyer's financing. The recognized fiduciary duties under Tenn. Code Ann. § 62-13-401 et seq. include loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. Guaranteeing third-party financing is outside the scope of any agency duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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